Why you should build your dApp on the DeFiChain Blockchain: The Ultimate Guide to DeFiChain | tech news

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You’ve probably seen or heard about it in the headlines countless times, decentralized finance (DeFi) is an emerging financial technology that is poised to revolutionize global finance as we know it. DeFi is a catch-all term for blockchain financial applications that aim to cut out the middleman from financial services such as lending, borrowing, trading, and investing, but with cryptocurrency.

These blockchain applications are referred to as decentralized applications or dApps. Just like traditional applications, DApp offers its users some features or utilities. DApp represents a new way of doing finance without all the administrative hassle of traditional finance. One of the main differences from traditional finance is that dApps are built on top of a decentralized network and can work autonomously, typically through the use of smart contracts running on a blockchain network.

DApps have evolved since their inception in May 2017. Back then, creating a new dApp with so many moving parts was complex and time-consuming. Today, the number of dApps has grown exponentially thanks to new blockchain ecosystems and tools.

Now we are entering a new era of next generation decentralized finance applications with new features, products and services. In order to create this next generation of dApps, builders and developers must use the most secure and robust networks and also pay close attention to the most popular cryptocurrency – Bitcoin.

Therefore, old dApp tools will not cut it anymore. DApp developers also need to build their applications on a decentralized blockchain platform that is fast, intelligent, and transparent to their centralized financial services. And that’s where DeFiChain comes in, a blockchain specifically designed for decentralized finance applications.

DeFiChain is a blockchain platform designed to harness the power of DeFi within the Bitcoin network. DeFiChain is supported by a network of nodes or computers to enable fast and cheap transactions and aims to solve some of the most common issues related to security, decentralization and scalability.

Launched just three years ago, DeFiChain was created to offer all DeFI benefits including lending, borrowing and investing. DeFiChain also offers full transparency and no single authority controls the network. For creators and developers building new dApps, here are the reasons why you should choose DeFi Blockchain as your next platform to build your decentralized apps.

DeFiChain maintains the security of the Bitcoin network

With so many cryptocurrencies out there, one thing that sets Bitcoin apart is its security and secure environment. The team behind DeFiChain also recognizes this unique strength of Bitcoin. DeFiChain not only dedicates a blockchain’s functionality specifically to decentralized finance, but also offers high transaction throughput, reduced risk of error, and intelligent feature development specifically for the fulfillment of Satoshi’s original intent: “To create a reliable alternative form of financial services built on top.” of bitcoin.”

Although many users see DeFiChain as a separate, distinct, and excellent blockchain network, the DeFiChain development team designed it with security and Bitcoin in mind. More specifically, by anchoring it to the Bitcoin blockchain, DeFiChain’s instant security and immutability is possible. As a result, DeFiChain stores its latest Merkle tree on the bitcoin every few minutes.

Over the years, the development of Ethereum and smart contracts has made it possible to build tremendous new functionalities on top of a blockchain, but this development and capabilities come at a price. The DeFiChain team is aware of this. As such, DeFiChain regards DeFi as a specific and critical segment of the blockchain community and a dedicated blockchain specifically optimized for DeFi applications.

The DeFiChain approach ensures that the latest DeFiChain records are fully secure, immutable and can be compared to records anchored to Bitcoin. In addition, using Bitcoin security protects DeFiChain from attacks, hackers and vulnerabilities.

DeFiChain takes the best of both worlds: it is anchored to Bitcoin and also maintains a native consensus mechanism and feature set. These two are necessary because the Bitcoin network lacks smart contract functionality and other features. Additionally, using Proof-of-Stake allows for better scaling, lower power consumption, fast transactions, and multi-token support, among other benefits detailed in DeFiChain Whitepaper.

A carbon neutral network

One of the challenges with most blockchain applications is their carbon footprint. Unlike Bitcoin, which uses Proof-of-Work, which takes a lot of energy to validate its transactions, DeFiChain uses Proof-of-Stake, which reduces energy consumption. As of November 2021, DeFiChain was officially a 100% carbon neutral blockchain. Proof-of-Stake is a consensus mechanism for processing transactions and creating new blocks on a blockchain to ensure that only valid entries are securely entered into a distributed database.

Therefore, using Proof-of-Stake serves another important purpose within the DeFiChain ecosystem. Because it is a more efficient network that allows for better energy efficiency, it paves the way for DeFiChain to become a carbon neutral network. In recent years, bitcoin and other proof-of-work blockchains have received extensive scrutiny for their environmental impact. Another push into renewable energy for mining purposes will help allay those concerns.

For DeFiChain, the push to become carbon neutral is crucial. The network achieved carbon neutrality a few months ago and continues to offset carbon emissions generated by blockchain operations without missing a beat. Additionally, DeFiChain shows how decentralized finance on Bitcoin can be carbon neutral while other popular networks – like Ethereum – continue to negatively impact the environment.

Community owned and community driven

As we’ve already discussed, one of the most important parts of a thriving community is trust and transparency. DeFiChain is a community owned platform with full transparency and no single authority controls the network. As such, the community plays a larger role in the smooth functioning of the ecosystem.

A thriving blockchain ecosystem relies on its users and node operators to achieve decentralization. But the core developers often retain some level of control to improve the network and make adjustments. DeFiChain is fully owned by the community, so all users are responsible for maintaining the network and finding ways to make it better and more robust.

All members of the DeFiChain community can contribute to this process through DeFiChain Improvement Proposals (DFIPs). It’s another great example of how to achieve decentralized governance and put the community members in the driver’s seat. Additionally, it creates a place for conversation and healthy discussion that can take the DeFiChain ecosystem to new heights.

The DeFiChain Accelerator

As an ecosystem grows, the need for feedback is also paramount. Another exciting addition to the DeFiChain ecosystem is the Native accelerator. This feature will serve as a solution to drive the adoption of DeFiChain and DeFi on Bitcoin with the goal of becoming the default blockchain for decentralized finance. The accelerator will help developers boost their business in the DeFiChain ecosystem and provide financial support where necessary and applicable.

Per the last month report, The DeFiChain Accelerator continues to gain momentum and will focus on the US market for now. Additionally, momentum is growing for companies looking to build on DeFiChain, although there is still more work to be done. Despite the current crypto market conditions, global interest in DeFi on Bitcoin continues to rise. As the DeFiChain community continues to thrive, it will be interesting to see what is built on DeFiChain in the coming months and years.



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