2022-12-03
DeFi Global News

Bitcoin as the foundation of DeFi | AMA with DeFiChain

The next edition of Cointelegraph’s AMA series is set for November 9th with a project that is using Bitcoin technology to innovate in DeFi.

For all the progress that has been made in DeFi, the industry currently stands at something of a crossroads. Since its peak last year, TVL in DeFi has shrunk from around $150 billion to where it is now, around $50 billion. The turmoil has coincided with global trends that have affected industries across the board, but the challenges faced by DeFi are unique, especially given how young a sector it is.

Few question that DeFi has the potential to transform finance in a way that is more equitable for all involved. The big question, though, is how exactly can DeFi’s potential be realized in sustainable and reliable platforms.

Our next AMA session will feature DeFiChain, a decentralized blockchain that forked off of Bitcoin and allows users to access a wide range of DeFi services while retaining the security of its predecessor. The AMA will take place at 4 pm UTC on November 9th and will delve into the challenges faced by the industry and explore potential pathways forward.

A decentralized Bitcoin off-shoot

DeFiChain was originally launched about 2 years ago by the DeFiChain Foundation. Since its launch, the platform has gone completely decentralized and is now controlled by over 10,000 masternodes that are distributed all around the world.

The blockchain itself is a fork of the original Bitcoin blockchain, which means that while there have been significant changes made, the network has carried over many of Bitcoin’s defining characteristics. Like Bitcoin, DeFiChain is a non-Turing complete blockchain, only it was built exclusively to offer DeFi services without any bloat and significant protection against bad actors.

Unlike Bitcoin, DeFiChain employs a proof-of-stake (POS) consensus mechanism. This is key to the DeFi opportunities presented by the network as POS alleviates some of the downsides associated with Bitcoin, namely the long waiting times and high fees on transactions.

One of DeFiChain’s defining features is that it engages in Bitcoin anchoring, where it periodically stores its data on the original blockchain. This means that, in the event of a 51 percent attack, the blockchain can be reverted to its last-anchored form and also incentivizes network health.

MORE INSIGHTS FROM DEFICHAIN HERE

Bitcoin as the ideal launching point for DeFi

By taking the original Bitcoin technology and adding key features on top of it, DeFiChain has created what it believes is an approach that will lead to a way forward for an industry that has been stuck in somewhat of a rut.

There are a number of different issues at play in DeFi currently, chief among them being a lack of transparency, security vulnerabilities, platforms with faulty economics and a level of complexity that can be overwhelming to newcomers. DeFiChain’s approach solves many of those issues by taking the industry back to basics in order to build something better.

A vibrant ecosystem has been built around the network that features all the best of what DeFi has to offer, including staking and farming mechanisms where users can earn yields on the liquidity that they provide. DeFiChain also has numerous opportunities for platform creators, given the flexibility afforded by its decentralized governance. Those opportunities include funding options for projects that are just getting started.

AMA session set for Wednesday

Cointelegraph will be hosting its upcoming AMA session featuring DeFiChain on Wednesday, November 9th at 4 pm UTC. The AMA is open to everyone, so be sure to tune in and come with all your questions about the future of the DeFi industry.

Material is provided in partnership with DeFiChain

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

Source : Cointelegraph.com