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Despite all the progress made in DeFi, the industry is currently at a crossroads. Since its peak last year, TVL in DeFi has grown from around $150 billion to its current level of around $50 billion. The turmoil has coincided with global trends that have affected industries across the board, but the challenges facing DeFi are unique, especially given how young the industry is.

Few doubt that DeFi has the potential to transform finance in a fairer way for all parties involved. The big question, however, is how exactly the potential of DeFi can be realized on sustainable and reliable platforms.

Our next AMA session will feature DeFiChain, a decentralized blockchain derived from Bitcoin and allowing users to access a wide range of DeFi services while maintaining the security of its predecessor. The AMA will take place at 4:00 p.m. UTC on November 9 and will look at the challenges facing the industry and explore potential ways forward.

A Decentralized Bitcoin Offshoot

DeFiChain was initially launched about 2 years ago by the DeFiChain Foundation. Since its launch, the platform has become completely decentralized and is now controlled by more than 10,000 masternodes spread all over the world.

The blockchain itself is a fork of the original Bitcoin blockchain, which means that although significant changes have been made, the network has carried over many defining characteristics of Bitcoin. Like Bitcoin, DeFiChain is a complete non-Turing blockchain, only it was built exclusively to offer DeFi services without any bloat and significant protection against bad actors.

Unlike Bitcoin, DeFiChain uses a proof-of-stake (POS) consensus mechanism. This is key to the DeFi opportunities presented by the network, as the point of sale mitigates some of the drawbacks associated with Bitcoin, namely long latency times and high fees on transactions.

One of the defining characteristics of DeFiChain is that it engages in Bitcoin peg, where it periodically stores its data on the original blockchain. This means that in the event of a 51% attack, the blockchain can be reverted to its last rooted form and also encourages network health.

More information about DeFiChain here

Bitcoin as an ideal launch point for DeFi

By taking the original Bitcoin technology and adding key features to it, DeFiChain has created what it believes will be an approach that will pave the way for an industry that has been stuck in some sort of rut.

There are a number of different issues at play in DeFi currently, the main ones being a lack of transparency, security vulnerabilities, platforms with flawed economics, and a level of complexity that can be overwhelming for newcomers. DeFiChain’s approach solves many of these problems by bringing the industry back to basics in order to build something better.

A vibrant ecosystem has been built around the network that showcases all the best that DeFi has to offer, including staking and farming mechanisms where users can earn returns on the liquidity they provide. DeFiChain also offers many opportunities for platform creators, given the flexibility offered by its decentralized governance. These opportunities include financing options for projects that are just getting started.

AMA session scheduled for Wednesday

Cointelegraph will hold its next AMA session with DeFiChain on Wednesday, November 9 at 4 p.m. UTC. The AMA is open to everyone, so be sure to tune in and ask all your questions about the future of the DeFi industry.

The material is provided in partnership with DeFiChain

Disclaimer. Cointelegraph does not endorse any content or product on this page. Although we aim to provide you with all important information we may obtain, readers should do their own research before taking any action related to the company and take full responsibility for their decisions, and this article cannot no longer be considered as investment advice.

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