DeFiChain (DFI): Is It a Good Investment?

Overview of DeFiChain

DeFiChain is a decentralized blockchain platform for faster accessible and transparent DeFi services and products, providing comprehensive DeFi capabilities to the Bitcoin ecosystem.

Supported by Distributed Ledger Technology, DeFiChain, as a software fork, enhances Bitcoin's security by anchoring to the blockchain through Merkle root.

DeFiChain is a dedicated non-Turing-complete blockchain designed specifically for the DeFi industry, functioning with simplicity, rapid throughput, and security.

DeFiChain offers its decentralized token exchange (DEX) for thousands of participants engaging in diverse transaction activities in the DeFi ecosystem.

History of DeFiChain

Established in November 2019, The DeFiChain Foundation owns all DFI trademarks and domains.

CEO Dr. Julian Hosp and Lead Researcher U-Zyn Chua are behind the Foundation responsible for the development of the DeFiChain project.

The MainNet of DeFiChain was launched on Bitcoin Halving Day in May 2020.

Experiencing a massive uptrend in the crypto market in 2021, the DFI token hit an all-time high ever of $5.62, reaping huge profits for its holders at that time.

About DeFiChain (DFI) token

DeFiChain (Symbol: DFI) is the utility token used as an integral unit of account within the DeFiChain ecosystem. DFI provides governance and voting rights on improvement proposals.

DFI token serves the following utilities:

• Fees: Pay for transactions, smart contracts and other DeFi activities.
• Loan collaterals: Lend or borrow using crypto assets as collateral.
• Staking nodes: Fund a new staking node for just 20,000 DFI.
• DeFi Custom Token: Create a non-refundable personalized DCT (DeFi Custom Token).
• Community fund proposal: Submit a community fund proposal for 10 DFI (non-refundable).
• Liquidity pools: Provide liquidity for the decentralized exchange between crypto assets.

How DeFiChain works

The operation of DeFiChain includes major components to tackle the problems, specifically:

• Scalability: DeFiChain employs a hybrid Proof-of-Stake/Proof-of-Work consensus mechanism. The validator, a random network leader, is selected within a certain block time to determine the next stage, effectively meeting the network bandwidth.
• Security: DeFiChain uses Smart Contract programming language instead of Turing. The guarantee from the Bitcoin network and the Proof-of-Work mechanism forms another layer of security for labeling blocks with unique hash IDs.
• Governance: DeFiChain adjusts its governance system to avoid hard forks by allowing community stakeholders to vote on DeFi improvement proposals using DFI tokens.

Features of DeFiChain

DeFiChain boasts some prominent features, including:

• Decentralized lending
• Decentralized wrapping of tokens
• Decentralized Pricing oracles
• Decentralized exchanges
• Transferable debts and receivables
• Decentralized Non-collateralized debt
• Asset tokenization
• Distribution of Dividends

Provided with these services, DeFiChain users and developers derive the benefits from:

• A full set of financial assets in a permissionless and borderless manner;
• A wide range of crypto-economic financial transactions;
• High throughput for all transactions;
• A high level of security through its hybrid consensus mechanism and non-Turing-complete transactions;
• Ability to create DeFi apps on one chain;
• A reliable and decentralized governance system.

Outlook on DFI token

With swap interoperability on Bitcoin and other crypto projects, DeFiChain attempts to create an ideal DeFi environment for crypto exchange.

DeFiChain users are empowered to seamlessly transact over various financial instruments in a fully unrestricted, decentralized, fast, and secure manner with low transaction fees.

DeFiChain allows anyone to run the protocol without the control of authorities and organizations, catering to the potential investment in the project and its DFI token.

At the time of writing, on July 19, 2022, the DFI token remains at the price of $1.08.

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