- Building on the DeFiChain blockchain is the most straightforward option, as it provides crucial benefits and opportunities.
- Using proof-of-stake serves another crucial purpose within the DeFiChain ecosystem.
- DeFiChain’s Accelerator will serve as a solution to boost the adoption of DeFiChain and DeFi on Bitcoin to become the default decentralized finance blockchain.
The next generation of decentralized finance applications, products, and services is just around the corner. Builders and developers need to leverage the most secure and robust networks and pay close attention to Bitcoin. Building on the DeFiChain blockchain is the most straightforward option, as it provides crucial benefits and opportunities.
DeFiChain Retains the Bitcoin Network’s Security
Many people may see DeFiChain as a separate and standalone blockchain. It is a distinguished network, but the developers built it with security and Bitcoin in mind. More specifically, DeFiChain’s immediate security and immutability are made possible by anchoring itself to the Bitcoin blockchain. As a result, the DeFiChain saves its most recent Merkle tree to the Bitcoin every few minutes.
That approach makes sense, as it ensures the most recent DeFiChain records are fully secure and immutable and can be checked against records anchored to Bitcoin. Although the anchoring intervals will be spaced out, the network will always benefit from provably immutable records. Additionally, leveraging Bitcoin’s security keeps DeFiChain safe from attacks, hackers, and vulnerabilities.
While DeFiChain is anchored to Bitcoin, it retains a native consensus mechanism and function set. Those are necessary, as the Bitcoin network lacks smart contract functionality and other properties. In addition, using Proof-of-Stake enables better scaling, lower energy consumption, fast transactions, and multi-token support, among other benefits outlined in the DeFiChain whitepaper.
A Carbon-neutral Network
Using proof-of-stake serves another crucial purpose within the DeFiChain ecosystem. As it is a more efficient network and one that enables better energy efficiency, it paves the way for DeFiChain to become carbon neutral. The Bitcoin network, and other proof-of-work blockchains, have come under increased scrutiny for their environmental impact. Pushing further into renewable energy for mining purposes will help alleviate those concerns.
For DeFiChain, the push to become carbon neutral is essential. The network achieved carbon neutrality several months ago and continues to offset CO2 emissions generated by blockchain operations without skipping a beat. Moreover, DeFiChain illustrates how decentralized finance on Bitcoin can be carbon neutral, whereas other popular networks – like Ethereum – continue to affect the environment negatively.
Community-Owned and Community-Driven
A blockchain ecosystem relies on its users and node operators to achieve decentralization. However, the core developers will often retain a degree of control to improve the network and make adjustments. DeFiChain is entirely community-owned, making all users responsible for maintaining the network and figuring out ways to make it better and more robust.
All DeFiChain community members can contribute to this process through DeFiChain Improvement Proposals (DFIPs). It is a solid example of achieving decentralized governance and putting community members in the driving seat. Moreover, it creates a place for conversation and healthy discussion, which can push the DeFiChain ecosystem to new heights.
The DeFiChain Accelerator
Another exciting addition to the DeFiChain ecosystem is the native Accelerator. It will serve as a solution to boost the adoption of DeFiChain and DeFi on Bitcoin to become the default decentralized finance blockchain. The Accelerator will aid developers in jump-starting their business in the DeFiChain ecosystem and extend financial support where necessary and applicable.
Per the recent monthly report, the DeFiChain Accelerator continues to build momentum and will focus on the US market for now. Additionally, there is growing momentum among companies looking to build on DeFiChain, although there is more work to do. Despite the current crypto market conditions, global interest in DeFi on Bitcoin keeps rising. It will be interesting to see what will be built on DeFiChain over the coming months and years.
