Does DeFiChain Need To Build A dApp?
DeFiChain was born with the purpose of solving problems related to security, decentralization, and scalability because it is a decentralized platform, not controlled by any authority. Today, CoinCu will give 4 reasons why you should build your dApp on DeFiChain.
DeFiChain is a blockchain platform built to leverage the potential of decentralized finance. The platform is supported by a network of nodes or computers, enabling fast, low-cost transactions. So dApps have the following reasons to support the platform:
Using Bitcoin as an additional layer of security, DeFiChain provides a secure blockchain and protects user privacy. Even so, it is still a separate and independent blockchain.
The developers anchored DeFiChain to the Bitcoin blockchain to ensure that projects on the platform are completely secure and immutable, which can be checked against the information stored on Bitcoin. Leveraging the security of Bitcoin makes the platform safe from attacks, hackers, and security holes.
Although anchored to Bitcoin, the platform retains a native set of functions and consensus mechanisms. The use of the Proof-of-Stake algorithm allows for better scaling, lower energy consumption, fast transactions, and support for more tokens. You can refer to the other benefits outlined in the DeFiChain whitepaper.
Carbon neutral network
The Proof-of-Stake consensus algorithm supports better energy savings, paving the way for DeFiChain to become a carbon-neutral network. Furthermore, it illustrates 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
A true blockchain ecosystem must rely on users and node operators to achieve decentralization. Even so, the core developers will still retain a certain degree of control in order to improve the network and make adjustments.
As for DeFiChain, it is completely community-owned, making all users responsible for maintaining the network and finding ways to make it better and stronger.
Currently, the community members can contribute to the process through the DeFiChain Improvement Proposal (DFIP) which helps to achieve decentralized governance and put community members in the right place. Moreover, the proposal creates a place for healthy conversation and discussion, which can push the ecosystem to the next level.
The ecosystem also has a native Accelerator, which is a solution to accelerate the adoption of DeFiChain and DeFi on Bitcoin. The accelerator will support start-up developers in the ecosystem and extend financial support as needed and applicable.
In summary, DeFiChain is an outstanding example of how the DeFi system, with its constant updating, innovation, and fine-tuning processes, is becoming a stronger financial system when compared to centralized investment. While traditional investment avenues are hampered by geographical restrictions and transaction limits, DeFi does not suffer from these problems.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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