The main power that the cryptocurrency industry offers to people is management ability over their financial situation. Although the target of my cryptocurrencies is obvious, the systems currently in use are far from leaving control in the hands of the user. The purpose of DeFiChain is to give people the opportunity to benefit from decentralized financial services.
Cryptocurrencies and DeFi offer a new system. Today, while cryptocurrencies attract billions of dollars in investments, DeFi is a little behind regarding its value. When it comes to investing in cryptocurrencies, there is no easy-to-reach option other than buying and selling. As with fiat currencies, investment options are just beginning to emerge. However, cryptocurrencies cannot be invested using the same methods as fiat currencies. Peer-to-peer lending platforms and tokenization of values have been partially beneficial, but are not reliable either. Therefore, we can say that the investment potential of cryptocurrencies has not reached its target yet.
What is DeFiChain?
DeFiChain focuses the functionality of a blockchain specifically on decentralized finance (DeFi). DeFi is the general name given to applications built on the blockchain. DeFiChain, which is advancing towards its goal thanks to its high transaction volume and reduced error risk in the DeFi field, follows Nakamoto’s vision of establishing a new financial service on top of Bitcoin. So, Bitcoin is described as a digital currency and exchange medium. On the other hand, Smart Contracts and other functions that came with Ethereum evolved for the cryptocurrency space. However, these developments also resulted in slow transactions and administrative difficulties. DeFiChain developed DeFi applications and optimized them for having used in decentralized applications only to solve this problem. Using a new set of codes, DeFiChain will overcome Ethereum code errors such as DAO hacking and locking of Parity funds.
Solutions by DeFiChain
Almost all financial services today are carried out by banks. Brokers get high amounts of money and investors encounter more brokers when they want to split their investments. In addition, there are problems such as slow transactions, delays in cross-border transactions, and the inability to access these services by segments of society. Although the Fintech industry has somewhat corrected this situation, the limits on which it can develop are certain. DeFiChain turns this situation to its advantage and wants to spread to the masses.
DeFiChain is designed for the investors of the cryptocurrency market to invest through any form of capital. Other features were compromised, albeit slightly, by emphasizing the essentials of DeFi. Features of the DeFiChain include:
- Decentralized lending
- Decentralized wrapping tokens
- Decentralized pricing oracles
- Decentralized exchanges
- Transferable debt and receivables
- Decentralized unsecured debt
- Tokenization of values
- Distribution of dividends
On the other hand, users can create their tokens on the DeFiChain blockchain. These tokens may not be under the support of DeFiChain, but they may receive external support. For example, a token DGX created on the Ethereum network is not backed by Ethereum but by gold. DGX developers are responsible for the DGX price.
Bitcoin and DeFiChain
The cryptocurrency market is quite hard to predict. Thousands of cryptocurrencies have been deleted from the market, and the future of many of them is uncertain. Despite this, the DeFiChain team’s view of Bitcoin is optimistic. On the other hand, Bitcoin has received acceptance as a valuable protection tool. Almost all cryptocurrency investors have BTC in their portfolios. This issue is why doing decentralized finance around Bitcoin opens up opportunities. Running smart contracts on the Bitcoin network is relatively problematic, and there are many Bitcoin-related side projects. As a result, we don’t see a side project that has an impact on the Bitcoin network. DeFiChain’s goal is to become the best blockchain that works well with Bitcoin, combining the stability and undesirability of Bitcoin with the scalability and functionality of DeFiChain.
Pros of DeFiChain
DeFiChain is versatile, and tools can develop for various financial operations and cryptocurrencies.
It is possible to perform all transactions efficiently because it is a private network.
It is a secure blockchain for decentralized finance.
It contains rapid development of decentralized applications (dApps) for decentralized finance.
DeFiChain Blockchain has no usage other than decentralized finance area. Thus, it is a great advantage that the developers and investors are 100% in favor of decentralized finance.
DeFiChain’s Smart Contracts are highly unlikely to be hacked because the area is pretty narrow.
What is DFI Coin?
DFI Coin is the internal currency of the DeFiChain ecosystem. The tokens to be issued by the DeFiChain Foundation will initially have a maximum supply of 1.2 billion units. DFI Coin will get used in all payments and transactions. The main usage areas are as follow:
- Transaction fee payment and decentralized exchange transactions
- Transaction fees for token transfers
- Transaction fee on DeFi activities
- Collateral to buy other cryptocurrencies in the DeFiChain ecosystem
- One million DFI will be required to have a staking node
- One thousand DFI will be paid to create a new token on the DeFiChain
What is the advantage of DeFi systems?
After the 2008 crisis in the world, many people felt distrust towards banks and state central banks. The dominance of a center in all financial instruments, monetary policies, and a system that even banks could lose at any time was criticized.
The governments can print unlimited money and change valuations, so people’s interest will increase in systems where no one can interfere with the formula.
Bitcoin has become the most valuable asset to emerge in this field. It was a decentralized DeFi organization, where thousands of people could be both using and managing it.
What are the disadvantages of DeFi?
In many ways, DeFi will radically change the traditional understanding of finance. Being at the very beginning of this change causes there to be still open spaces in some areas of this system.
DeFi systems currently have two aspects that may be missing. Although it aims to have worldwide usage, the number of people using DeFi seems very small.
As a second problem, so many transactions have to get stored as data in some ways. There is not an adequate infrastructure for the storage of these data.