What is DeFiChain (DFI) Coin?
DeFichain (DFI) is a blockchain platform working with the mission of expanding the maximum capacity (full potential) of DeFi within the Bitcoin (BTC) environment. The platform is supported by a distributed network of computers and is intended to facilitate transparent transactions.
The platform ensures quick, straightforward, and decentralized financial services. It’s based on the Bitcoin blockchain as a software fork using Merkle roots. DeFiChain activities are non-Turing complete, making them quick and cost-effective, with low smart contract risks. The DeFiChain designers (developers) position the task as an imaginative blockchain that will address the versatility, security, scalability, and governance problems.
Is the DeFiChain Network Secured?
The DeFiChain (DFI) smart contract programming language is viewed as a protected choice since it’s non-Turing complete. Likewise, DeFiChain is attached to Bitcoin (BTC) for security reasons: at regular intervals, DeFiChain takes cryptographic snapshots of the present status of the organization and stores them on the Bitcoin blockchain.
DeFiChain Key Features
- Asset tokenization
- Decentralized exchanges
- Decentralized lending
- Decentralized wrapping of tokens
- Decentralized Pricing oracles
- Distribution of Dividends
- Transferable debts and receivables
- Decentralized Non-collateralized debt
Decentralized assets on DeFiChain
Decentralized assets come in many forms and structures. Some could even share similarities with assets and asset types that you know all about. However, it is critical to figure out the differences between them to grasp their full potential.
A traditional stock, for example, is a share in a company. Investors (shareholders) are therefore co-owners who have a financial stake in the organization. In return for the invested capital, the organization (company) gives the investor stock. Stock must be given by the actual organization and is dependent upon various guidelines. Certain privileges and commitments remain closely connected with the offer.
Decentralized assets, on the other hand, are not issued by organizations and consequently just exist on the respective platform on which they were made. Instead of following and reflecting the actual stock price issued straight by an organization or by a large institution, it tracks and reflects various variable factors, and uses oracles to catch those feeds. This means that you are not accepting the actual stock, yet rather a symbolic (token) that considers these variable elements, in a decentralized way.
What Makes DeFiChain Unique?
Bitcoin (BTC) and Ethereum (ETH), the two of which have inspired the rise of decentralized finance. However, these innovations have their limitations, this is where DeFiChain (DFI) comes in, aiming (expecting) to handle difficult challenges like security, scalability, and fair governance.
Benefits of DeFiChain
- Offering financial asset classes to users in a permissionless and borderless manner.
- Offering high throughput for all transactions.
- Offering developers the ability to make DeFi applications on one chain.
- Accomplishing a high level of security through its hybrid consensus mechanism.
- Providing a reliable and decentralized governance system.
- Supporting an extensive variety of crypto-economic financial transactions.
Community Development Fund
The DeFiChain foundation will make a community development fund with up to 10% of the block rewards under administration. This rate can be refreshed by presenting a DAO proposal that will be voted on by all master nodes. The community will decide the use of these funds for advancement (development), marketing, or research that advances the DeFi community. DFI master nodes vote for projects they like and the highest-voted proposals every month will be funded.
It costs (submission fee) 10 DFI to submit a budget proposal and the proposal can be submitted by anyone. This fee is burned and non-refundable whether the budget is approved or not. For governance (administration choices) decisions, only the Foundation may submit the proposals. Proposals are voted similarly to DAO budget proposals except that decisions will be honored via a simple majority vote.
Conclusion
DeFiChain looks like a promising project with a lot of potential. The project’s roadmap is ambitious and it can rise high if the crypto market performs well.
Remember that the crypto market is highly uncertain and volatile there is a possibility that well-performing coins can give losses also so it’s important to do the research first before investing in any coin. Cryptocurrency in general can give unexpected results anytime, so you should never invest what you can’t bear to lose.
Disclaimer: Cryptocurrencies are unregulated, highly volatile, uncertain, and risky. Each individual must do his/her own research or seek independent advice if necessary before initiating any transactions or decision in crypto products and NFTs. The view, thoughts, perspectives, and opinions communicated in the article belong solely to the author. CryptoHott shall not be held liable for any acts or omissions, or losses incurred by the investors.