What is Defichain

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About DeFiChain

Key Points

  • DeFiChain (DFI) is a blockchain platform built on Bitcoin, aiming to maximize DeFi potential.
  • Launched in 2019, it offers decentralized financial services, including lending, token wrapping, and more.
  • Founders: Dr. Julian Hosp and U-Zyn Chua, co-founders of Cake DeFi.
  • Unique features: hybrid PoS-PoW consensus, non-Turing complete transactions, and high security.
  • Benefits: full suite of financial asset classes, high throughput, high security, and decentralized governance.
  • DFI token: capped supply of 1.2 billion, used for transaction fees, governance

About DeFiChain: Empowering the Future of Decentralized Finance

Introducing DeFiChain (DFI): A Revolutionary Blockchain Ecosystem

DeFiChain (DFI) is a pioneering blockchain platform driven by a mission to unlock the vast potential of decentralized finance (DeFi) within the Bitcoin (BTC) ecosystem. This cutting-edge software platform is underpinned by a decentralized network of computers, engineered to facilitate rapid and transparent transactions. The development team envisions DeFiChain as a trailblazing blockchain project, offering innovative solutions to the pressing issues of scalability, security, and decentralization.

The project was inaugurated in the fall of 2019 with the ambitious goal of providing a comprehensive suite of financial services, akin to those offered by traditional commercial banks, including borrowing, lending, investing, and custodial services. However, a pivotal distinction sets DeFiChain apart from a conventional banking network: its decentralized architecture. This paradigm shift yields a multitude of benefits, including the inability of authorities and entities to exert control over the network, and the democratization of participation in the launch of the network protocol, where every action contributes to the collective good, with participants being incentivized with DFI tokens.

The DeFiChain platform facilitates rapid, transparent, and decentralized financial services. Built as a software fork of Bitcoin, the project is anchored to the Bitcoin blockchain via a Merkle root every few blocks. Notably, DeFiChain transactions are non-Turing complete, ensuring swift and seamless execution, accompanied by low gas costs and a diminished risk of smart contract errors.

DeFiChain’s inaugural offerings encompass a diverse range of innovative functions and products, including lending, token wrapping, pricing oracles, exchanges, asset tokenization, dividend distribution, and many more.

The Visionaries Behind DeFiChain: Meet the Founders

The DeFiChain Foundation holds exclusive ownership of all DeFiChain (DFI) trademarks and domains, assuming a multifaceted role that encompasses ecosystem development, forging strategic partnerships, guiding the creation of tools for partners, and prudent oversight of DFI funds.

At the helm of the project are two visionary figures: Dr. Julian Hosp and U-Zyn Chua. As a renowned and authoritative expert in the crypto sphere, Hosp boasts a substantial global following. Additionally, he serves as the co-founder and CEO of Cake DeFi, further solidifying his industry stature.

U-Zyn Chua, esteemed co-founder of Cake DeFi, assumes the dual roles of Chief Technical Officer (CTO) and researcher at DeFiChain, while concurrently serving as Chief Engineer at Zynesis and blockchain advisor to the Singaporean government.

Unveiling the Unparalleled DeFiChain Advantage

In the realm of cryptocurrency, two behemoths stand tall: Bitcoin (BTC) and Ethereum (ETH), both of which have paved the way for the advent of decentralized finance. However, these pioneering innovations have inherent limitations: Bitcoin, renowned for its unwavering security, is restricted to facilitating basic BTC transactions. Meanwhile, Ethereum, although empowering developers to craft applications that execute more intricate transactions, struggles with scalability issues that hinder its network.

This is where DeFiChain (DFI) enters the fray, seeking to overcome the hurdles of scalability, security, and equitable governance. The innovative solutions it brings to the table are as follows:

  • Developing a blockchain platform tailored to DeFi applications, leveraging the robust security features inherent to Bitcoin.
  • Implementing a hybrid consensus mechanism that synergistically combines the benefits of proof of stake (PoS) and proof of work (PoW) to facilitate seamless network operation.

The advantages of DeFiChain are multifaceted and include:

  • Providing users with unfettered access to a comprehensive array of financial asset classes, unencumbered by geographical or institutional constraints.
  • Facilitating a diverse range of cryptoeconomic financial transactions, catering to diverse user needs.
  • Ensuring seamless and efficient transaction processing, characterized by high throughput.
  • Maintaining an exceptionally secure environment, courtesy of its innovative hybrid consensus mechanism and the non-Turing completeness of transactions.
  • Empowering developers to craft decentralized finance (DeFi) applications on a single, unified chain.
  • Implementing a dependable and decentralized governance system, ensuring community-driven decision-making.

What Is the Circulating Supply of DeFiChain (DFI) Coins?

DeFiChain (DFI) serves as the native unit of account for the DeFiChain platform, where it plays a dual role. Not only is it utilized as a means of payment for transaction fees, but it also functions as a governance tool, empowering token holders to cast their votes on proposed ecosystem enhancements. Furthermore, DFI can be leveraged as collateral to borrow other crypto assets, thereby expanding its utility.

DFI boasts a capped supply of 1.2 billion coins, with a deliberate allocation of 49% to the DeFiChain Fund, while the remaining 51% has been incrementally distributed to masternode holders over time. Notably, the project eschewed initial coin offerings (ICOs) and initial exchange offerings (IEOs), and the DeFiChain team refrained from conducting any sales rounds.

The DeFiChain network is secured through a decentralized, community-driven governance model, which ensures the integrity and security of the blockchain. This is achieved through a hybrid consensus algorithm that combines the benefits of proof-of-stake (PoS) and Byzantine Fault Tolerance (BFT) consensus mechanisms, thereby providing a robust and resilient network infrastructure.

The DeFiChain (DFI) smart contract programming language is deemed a secure option owing to its non-Turing completeness. Furthermore, DeFiChain is anchored to Bitcoin (BTC) for enhanced security: at regular intervals, DeFiChain captures cryptographic snapshots of the network’s current state and stores them on the Bitcoin blockchain, effectively creating a backup.

In September 2020, DeFiChain’s smart contracts underwent rigorous audits by SlowMist, followed by a thorough examination by KnownSec in October of the same year. Notably, both assessments yielded a clean bill of health, with no vulnerabilities detected.

DeFiChain’s ultimate bulwark against security breaches lies in its innovative hybrid PoW-PoS consensus mechanism, which synergistically combines the strengths of both paradigms to create an unparalleled level of protection.

Where to Acquire DeFiChain (DFI): A Comprehensive Guide

DeFiChain (DFI) has secured listings on prominent cryptocurrency exchanges, including Bittrex. Additionally, investors can acquire DFI through KuCoin, Uniswap (V2), DeFiChain DEX, Hotbit, LATOKEN, Bitrue, as well as the mobile application provided by DFX.SWISS.

Alternatively, DFI tokens can be acquired directly through the Cake DeFi platform, although it’s worth noting that prices may be marginally higher compared to those listed on cryptocurrency exchanges.

New to the realm of cryptocurrency? A great place to start is the CoinMarketCap blog, a treasure trove of valuable insights and information.

Delve into the world of cryptocurrency with confidence by familiarizing yourself with industry-specific terminology. Explore CoinMarketCap’s comprehensive glossary, your go-to resource for deciphering the nuances of the crypto universe.

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