Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
Through the DeFiChain Accelerator, promising projects can be funded as startups will be able to jumpstart or scale their platforms as the case may be.
The current landscape in the digital currency ecosystem is highly unfriendly, and a lot of tokens are reeling from the impact of this period of uncertainty. While the inherent utility of crypto tokens has not been enough to help them cushion against the overall slump in the growth of these tokens, the kinds of blockchain ecosystems they are built on can determine how well they will survive this crypto winter and remain sustainable in the foreseeable future.
With thousands of new blockchain networks around today, DeFiChain comes off as one of the few with the right balance that can serve as a substrate for growth for projects building on it. DeFiChain is a blockchain platform built to leverage the potential of decentralized finance within the Bitcoin network. DeFiChain is supported by a network of nodes or computers to facilitate fast and low-cost transactions.
While no single protocol is immune to the bearish financial markets ripped by inflation and harsh monetary policies, here are four good reasons why a project choosing to build on the DeFiChain blockchain will benefit more in the long term.
DeFiChain Retains the Bitcoin Network’s Security
The DeFiChain blockchain brandishes a number of features, one of which is its retention of the security of the Bitcoin network. The Bitcoin protocol is often classified as the most secure blockchain protocol in the world as its node operators are very diversified and decentralized.
While it is a standalone protocol, the developers built the protocol with Bitcoin in mind. By anchoring itself to the Bitcoin blockchain, DeFiChain’s immediate security and immutability are possible. As a result, the DeFiChain saves its most recent Merkle tree to the Bitcoin every few minutes.
Despite its close relationship with the Bitcoin blockchain, DeFiChain retains its smart contract functionalities as a Proof-of-Stake (PoS) network. Building on DeFiChain offers adequate scalability and functionality that favors DApps.
A Carbon-Neutral Network
DeFiChain as a PoS protocol is a highly energy-efficient protocol when compared to Bitcoin and networks that operate based on the Proof-of-Work (PoW) consensus model. As it is a more efficient network and one that enables better energy efficiency, it paves the way for DeFiChain to become carbon neutral
Despite its affiliations with the Bitcoin network, DeFiChain is freed from the scrutiny being faced by the former over environmental degradation. DeFiChain attained carbon-neutrality a few months back and has consistently been investing in its CO2 offset in a bid to go Carbon-negative.
Community-Owned And Community-Driven
The DeFiChain protocol is completely community-owned as the process of proposing and implementing network changes is solely vested in the hands of its community. All DeFiChain community members can contribute to this process through DeFiChain Improvement Proposals (DFIPs).
It is a good example of how to achieve decentralized governance and put community members in the driving seat at the same time. The model that is being adopted by DeFiChain also creates a place for conversation and healthy discussion, which can push the DeFiChain ecosystem to new heights.
The DeFiChain Accelerator
By pitching tents with DeFiChain, protocols can gain more value-added benefits in the near to long term. Through the DeFiChain Accelerator, promising projects can be funded as startups will be able to jumpstart or scale their platforms as the case may be.
While its primary focus will be on the US market, for now, a recent monthly report shows the accelerator has continued to build momentum. Knowing that smart contracts can offer the security provided by Bitcoin, developers are likely to take advantage of the accelerator to build on DeFiChain.