DeFiChain (DFI) is a blockchain initiative designed to maximize the potential of decentralized finance (DeFi) within the Bitcoin (BTC) network. This software platform operates through a distributed network of computers, enabling swift and transparent transactions. The developers promote DeFiChain as an avant-garde blockchain project, addressing issues like scalability, security, and decentralization.
Launched in the fall of 2019, the project aims to provide financial services akin to those offered by traditional banks, such as borrowing, lending, investing, and safeguarding funds. However, a fundamental difference sets DeFiChain apart: it is a decentralized platform. This means that no central authority can control the network, and anyone is welcome to help run the protocol. All activities benefit the entire network, and participants earn DFI tokens as rewards.
DeFiChain offers rapid, transparent, and decentralized financial services, operating as a software fork of Bitcoin and connecting to the Bitcoin blockchain through a Merkle root every few blocks. Transactions on DeFiChain are non-Turing complete, ensuring they are fast, seamless, and cost-effective with minimal risks of smart contract errors.
The initial features and products of DeFiChain encompass lending, token wrapping, price oracles, exchanges, asset tokenization, dividend distribution, and more.
Who Are the Founders of DeFiChain?
The DeFiChain Foundation owns all trademarks and domains related to DeFiChain (DFI). It is tasked with developing the ecosystem, establishing new partnerships, creating tools for partners, and managing DFI funds.
The project was co-founded by two notable individuals: Dr. Julian Hosp and U-Zyn Chua. Hosp is a prominent figure in the crypto sphere, boasting a significant global following. He also co-founded and serves as the CEO of Cake DeFi.
U-Zyn Chua, who also co-founded Cake DeFi, is the chief technical officer and a researcher at DeFiChain. Additionally, he holds the position of chief engineer at Zynesis and acts as a blockchain advisor to the Singapore government.
What Makes DeFiChain Unique?
The crypto industry features two major blockchains: Bitcoin (BTC) and Ethereum (ETH), both of which have been pivotal in the rise of decentralized finance. However, these pioneering innovations have their drawbacks: Bitcoin is known for its security but supports only basic BTC transactions. Ethereum allows developers to build applications for more intricate transactions, yet it struggles with scalability.
DeFiChain (DFI) seeks to address issues like scalability, security, and equitable governance by offering the following solutions:
* Creating a blockchain platform specifically for DeFi use cases, based on Bitcoin to ensure robust security.
* Employing a hybrid consensus mechanism combining proof of stake (PoS) and proof of work (PoW) for network operations.
The advantages of DeFiChain include:
* Providing users with a comprehensive range of financial asset classes in a permissionless and borderless way.
* Supporting a broad spectrum of cryptoeconomic financial transactions.
* Delivering high transaction throughput.
* Ensuring a high security standard through its hybrid consensus model and non-Turing complete transactions.
* Enabling developers to build DeFi applications on a single chain.
* Offering a trustworthy and decentralized governance system.
How Many DeFiChain (DFI) Coins Are There in Circulation?
DeFiChain (DFI) serves as the native currency for the DeFiChain platform. The token is used for transaction fee payments and as a governance instrument, allowing holders to vote on ecosystem upgrades. Additionally, DFI can act as collateral for borrowing other crypto assets.
The total supply of DFI is capped at 1.2 billion coins. Of this, 49% was allocated to the DeFiChain Fund, while the remaining 51% is gradually distributed to masternode holders. The project did not engage in ICO or initial exchange offering (IEO) events, and the DeFiChain team did not conduct any sales rounds.
How Is the DeFiChain Network Secured?
The programming language used for DeFiChain (DFI) smart contracts is deemed secure due to its non-Turing complete nature. Furthermore, DeFiChain is linked to Bitcoin (BTC) for security reasons: periodically, DeFiChain captures cryptographic snapshots of the network's current state and stores them on the Bitcoin blockchain, akin to creating backups.
In September 2020, SlowMist conducted an audit of DeFiChain smart contracts, followed by an audit by KnownSec in October of the same year. No vulnerabilities were identified.
DeFiChain’s security is further strengthened by its hybrid PoW-PoS consensus mechanism, which leverages the best features of each.
Where Can You Buy DeFiChain (DFI)?
DeFiChain (DFI) is available on leading cryptocurrency exchanges like Bittrex. Additional platforms for purchasing DFI include KuCoin, Uniswap (V2), DeFiChain DEX, Hotbit, LATOKEN, Bitrue, and the DFX.SWISS mobile app.
Alternatively, DFI tokens can be purchased directly through the Cake DeFi platform, although prices might be slightly higher compared to cryptocurrency exchanges.
