DeFiChain

What is DeFiChain (DFI)?

DFI is the native coin of DeFiChain, a decentralized blockchain platform. DeFichain is Bitcoin soft fork which is connected to the blockchain via Merkle tree technology (using Merkle root every few blocks). The main goal of DeFiChain is solve Bitcoin’s scalability, security and decentralization issues, and also brings the potential of DeFi to the Bitcoin network. Even though it is derived from Bitcoin, the price of DeFiChain does not directly depend on BTC’s position in the market.

Overall, the DeFiChain network offers various financial transactions that are usually carried out by traditional banks. However, the advantage of DeFiChain over banks is that the network is decentralized. Thus, there is no single organization that controls the network, meaning that decision making is in the hands of the DeFiChain community. The main features that DeFiChain offers include:

• Lending and loans;
• Unsecured debt;
• Peer-to-peer trading;
• Packed tokens;
• An object tokenization;
• Dividend distribution;
• Price oracles that collect data from other chains.

Additionally, transactions on the DeFiChain platform are fast, easy to execute, cost-effective, and less prone to smart contract failures. This is so because DeFiChain transactions are not Turing complete.

If you are interested in the current price of DeFiChain, check out the DFI price chart above.

History of DeFiChain

The DeFiChain cryptocurrency project was launched in 2017 by the DeFiChain Foundation. The DeFiChain mainnet launched on May 11, 2020 (the day the Bitcoin halving occurred). At launch, the price of DFI was around $0.17.

The DeFiChain Foundation is responsible for expanding the DeFiChain ecosystem, forging new collaborations, and managing the supply of DeFiChain coins.

Dr. Julian Hosp And U-Zin Chua are two outstanding individuals who helped launch this initiative. Wu-Zin Chua is a researcher and technical director of the company. Chua works as a chief engineer at Zynesis and is also a blockchain advisor to the Singapore government. Additionally, he is the co-founder of Cake DeFi.

Dr. Julian Hosp is also the co-founder and CEO of Cake DeFi. Overall, he is a well-known and respected expert in the crypto sector.

The price of DeFiChain crossed the $1 threshold within six months of its launch. It has demonstrated a tendency to follow general market trends, adjusting to the bullish and bearish value swings experienced by major cryptocurrencies such as Bitcoin.

How does DeFiChain work?

The DeFiChain crypto project uses a hybrid consensus mechanism that combines the traditional Proof-of-Work (PoW) consensus mechanism with the innovative Proof-of-Stake (PoS) consensus mechanism.

However, DeFiChain focuses most of the consensus on PoS while leveraging the best features of PoW such as using staking node ID hashing to construct blocks. Thus, masternodes (staking nodes) can operate the DeFiChain PoW process without spending money on top-tier servers and high-speed connections.

In general, masternodes take part in generating blocks and validating transactions in real time. To run a masternode, DFI stakers need to have at least 20,000 DFI.

Finally, it’s worth mentioning that DeFiChain uses Atomic swaps. Essentially, these are smart contracts designed to facilitate decentralized exchange of crypto assets between blockchains without the need for an intermediary.

Instead of calling this feature DEX (decentralized exchange), DeFiChain calls it ICX (internetwork exchange). ICX is set up like a regular exchange where users bid to receive assets, unlike a DEX which is an automatic exchange feature.

Purpose of DFI coins

The main features of DeFiChain coins include:

• DFI can be used as governance tokenwhich means that DFI token holders can vote on various decisions, taking into account the further development of the system and the distribution of its funds;
• DFI can be used as payment method. This means that any fees charged when executing transactions, smart contracts or other DeFi operations on the DeFiChain network can be paid using DFI tokens;
• DFI can be used as pledge. This means that whenever users want to lend or borrow other crypto assets, they can do so using DFI as collateral;
• DFI can be used for provide liquidity for decentralized exchange between crypto assets;
• DFI can be used for create a non-refundable personal DCT (DeFi Custom Tokens).

If you are planning to purchase DeFiChain coins for governance or on-chain payments, please note that the price of DFI may fluctuate.

Tokenomics of DFI coins

The maximum supply of DFI coins is 1.2 billion. Since the token has a limited supply, it is considered anti-inflationary. Therefore, over time, the price of DeFiChain will likely increase.

However, the distribution of DFI coins is somewhat different from the distribution of most crypto assets, since DeFiChain did not have any NOO, ICOor sales rounds. Consequently, the distribution of DFI tokens was not profitable for either the fund or its founders.

The total supply of DFI is divided into two parts (49% and 51%), which are intended for the initial supply and masternode owners respectively. However, the initial supply is divided into three parts: 26% of the tokens were airdropped, 27% were burned, and 47% were destroyed. Additionally, tokens intended for masternode holders will only be released over time. If you are interested in the current prices and supply of DFI, you can find the relevant data above.