What digital currency does defi favor
1. Enjin (enj)
in the near future, the game instry is the instry most likely to adopt blockchain on a large scale. Enjin coin is the cryptocurrency of virtual goods created by Enjin. Enjin is the "largest online gaming community platform" with more than 250000 gaming communities and 18.7 million registered gamers
Cardano (ADA)compared with Ethereum, EOS and Tron, Cardano is the third generation of decentralized app (DAPP) and smart contract platform. Cardano's design philosophy has the following points:
scalability: with the growth of users, the transaction processing speed is not affected or even faster, such as P2P protocol
interoperability: in the future, there will be countless devices connected to each other, instead of only connecting and forwarding through routers. All kinds of devices can communicate directly through standard general protocol
Sustainability: like bitcoin, Cardano project will not be controlled and influenced by a certain company or organization, which is a safe, decentralized and sustainable development platform
With the popularity of sto (security token offers), Nash also plays an important role. Nash is a kind of registered security token. In the past, Nash participated in and led the development of many projectsNash exchange is a decentralized exchange. If you hold nex token, you can calculate the dividend here
4. Basic attention token (BAT)
bat mainly solves the problem of advertising:
user information is abused: large companies such as Google and Facebook track and use user information and behavior, and sell without the knowledge of users
the effect of advertising is restrained: middlemen earn most of the fees, a large number of advertisements are blocked by users using software, and advertisements are fake
in the past six to 12 months, the number of publishers using the brand browser (Note: the brand browser supports bat token) has grown rapidly, and almost no blockchain ecosystem has grown so fast
5, chainlink (link)
chainlink mainly solves the problem that each blockchain has and the smart contract cannot obtain external data. In order to introce external data into the blockchain, the concept of Oracle is proposed in smart contract
companies including Google are supporting the development of chainlink. Here is a list of chainlink partners
one of the main problems of chainlink is similar to Ethereum. The development team has reserved 650 million link tokens, while only 350 million are in circulation at present
Ethereum (ETH)Ethereum has long occupied the second place in the top 100 cryptocurrencies. Its ecology is so big that we can't call it altcoin now. To tell you the truth, I'm not optimistic about Ethereum in the long run, but it will flourish in the short run
users in the defi ecosystem have complete control over the assets and participate in the defi with the help of P2P network and DAPP
advantages of defi
the popularity of defi is inseparable from its unique advantages. Defi mainly includes:
1. Open loan agreement
compared with the traditional credit structure, open and decentralized loans have many advantages, including integration of digital asset lending, digital asset mortgage, real-time transaction settlement and novel secured loan methods, no credit check, standardization and interoperability. The purpose of secured lending using open protocols such as maker and Dharma is to rece the risk of counterparties without intermediation by relying on the minimum amount of collateral provided by Ethereum
2. Issuance platform and investment
famous securities issuance platforms such as polymath and harbor provide the framework, tools and resources for issuers to issue marked securities on the blockchain. They have prepared their own standardized token contracts for securities (i.e. st-20 and r-token), which are unique in terms of automatic compliance and customizable transaction parameters and can meet regulatory requirements. Similarly, they are integrated with service providers (e.g., broker dealers, custodians, legal entities, etc.) to assist issuers in issuing
3. Decentralized forecasting market
decentralized forecasting market is one of the most attractive components of open finance, which is highly complex but has great potential. August launched the anti censorship forecast market last year, and other platforms like gnosis began to follow suit. Forecasting market has long been a popular financial tool for avoiding risks and speculating on world events, and decentralized forecasting market can also do this
4 exchanges and open markets
exchanges in open finance mainly consider decentralized exchange (DEX) protocol and P2P market. First of all, DEX is a P2P asset exchange between two parties on Ethereum, in which no third party acts as an intermediary, such as coinbase or other centralized exchanges. DEX also uses some highly innovative methods to exchange tokens, such as atomic exchange and other unmanaged methods, to exchange one asset for another with minimal settlement time or risk. The most popular DAPP in Ethereum is the decentralized exchange IDEX. Although many "DEX" claim that they are indeed decentralized or unmanaged, be careful before using them. The P2P market on Ethereum has great long-term potential, and may eventually cover the market of local digital assets and marked real-world assets
5. Stable currency
stable currency is booming in the digital asset market by issuing warrants, auditing its reserves and managing its price linked new model. Stable currency is just a token issued by the blockchain, which aims to keep a stable link with external assets (mainly US dollars, gold or other assets). The stable currency of encrypted mortgage includes Maker & # 39; S Dai, where the underlying asset (e.g., ETH) is over mortgaged relative to the borrowing asset (DAI) according to the current mortgage rate. So far, stable currencies backed by legal tender are the most popular because of regulatory compliance and no audit risk, such as tether, usdc and Gemini dollars
disadvantages of defi
on the one hand, the development of defi is restricted by the performance of the underlying public chain. The current defi project is mainly built on the Ethereum network. At present, the performance bottleneck of Ethereum is relatively prominent, and there is still a long way to go to break through the bottleneck. Under such a situation, those projects with high performance requirements will be in an embarrassing situation. On the other hand, compared with traditional financial procts, decentralized financial projects are much more difficult to use and have higher cognitive requirements for users, which will also greatly affect the development speed of defi. In addition, the roller coaster like ups and downs of defi projects (sushi, yam, yfii, etc.) also make people wary of its security. How to continuously accumulate user trust is also the focus of attention in the future.
deflation is deflation: when the amount of money in circulation in the market decreases, the people's money income decreases, and the purchasing power decreases, which affects the prices and causes deflation. The long-term monetary tightening will restrain investment and proction, lead to the rise of unemployment rate and economic recession
these two are inflation and deflation respectively.
The decentralized forecasting platform has long been a popular financial tool to avoid risks and speculate on global events. A decentralized forecasting market can do the same, but it has cryptocurrency and cannot censor the market. Aug has provided everything from politics and weather forecasting to dealing with the risks of real-world financial or adverse events
4. The role of exchange and open market is realized through decentralized exchange (DEX). DEX is a P2P market of Ethereum assets between two parties, in which no third party acts as the intermediary of transaction. Therefore, they are different from centralized exchanges like coinbase & Co. in this respect. Some DEX also use some highly innovative token exchange methods, such as atomic exchange and other non storage methods to exchange one asset for another with minimum settlement time and risk
other types of open markets focus on the exchange's irreplaceable token (NFT), commonly known as cryptocurrency collectibles. Platforms such as opensea and ratebits facilitate the search and purchase / sale of cryptocurrency assets, ranging from NFT in games such as cryptokitties to virtual parcels in decentraland games. Even some markets, such as district0x, are said to allow users to create their own exchanges and vote on management programs. Current examples of DEX providing cryptocurrency transactions include currency DEX and ether Delta
Stable currencynow, there are many types of stable currency. Part of the difference between them is how they issue coins, how they check their reserves and how they price them. Stable token is a token issued by blockchain to maintain stable value. It is usually linked to dollars, gold or other external assets to achieve this goal. Generally speaking, stable currency can be divided into the following three categories:
< UL >cryptocurrency pledge stable currency includes maker's Dai. However, the stable currency supported by legal tender is by far the most popular stable currency in the market. The first is tether, although there are many alternatives. The models of these stable currencies are similar to each other. For all of this, the user must trust the provider. Some provide regular and voluntary audits to build the necessary trust through transparency
stable currency without pledge is neither centralized nor supported by cryptocurrency assets. They are based on algorithms to maintain stable values. In short, the algorithm takes supply and demand as parameters and adjusts them to keep balance. The foundation is a pioneer in this category, but it failed e to regulatory considerations. As a result, the project was abandoned
The future of defi - what's the potential< p> The final question, of course, is what the potential of the whole defi movement is? Basically, there are a lot of things that are simply exaggerated in the field of cryptocurrency. The immeasurable potential is attributed to the vision, so the actual proct has no chance to realize the exaggerated expectations. Then there's serious disillusionment and boredom. However, compared with defi, it is different because there are already some finished procts, such as maker, and the market has well accepted themnevertheless, we are still in the early stage of the whole defi movement. But the potential behind it is enormous. Even if only a small number of defis (such as lending) succeed in the future, that's more than enough. If the defi ecosystem can provide better conditional lending than most national banks and other lending institutions, it could lead to global adoption
but this is also one of the biggest obstacles that we have to overcome in the field of defi. On the one hand, more ecation is needed so that the masses can even know the existence of this alternative method. As before, only a small number of people worry about issues related to cryptocurrency and blockchain technology. In particular, there are even fewer people dealing with the defi department, and they have not even heard of it. On the other hand, the user friendliness of such procts must be greatly improved, so as to lay the necessary road for the public to use the procts and for global adoption