A blockchain can be defined as a growing and corresponding sequence or chain of records, called blocks. Each of those blocks contains a cryptographic hash or ‘identity ‘of the previous block, transaction data and its timestamp. As a P2P network usually manages a blockchain, most nodes in that network must be in consensus to approve any change in any block. Those nodes are computers, and each has a copy of the blockchain. A transaction is written into the ledger only if approved by a more significant number of nodes after inspection of the hash.
With many uses in financial inclusion, smart contracts, and investments and transactions, blockchain technology is a powerful tool for fighting fraud, as the records cannot be altered retroactively.
With the above evaluation criteria, Coinmarket’s team has thoroughly researched the developing projects in Europe. We reached out to more than 60 experts and reviewed some 1200 organizations in over 20 countries.
After synthesizing the information and scrutinizing them thoroughly, a project stunned us by its enormous potential. This is Defichain – a DEFI blockchain development project from the UK. Here are the reasons why Coinmarket can claim this!
DEFI IS A COIN WITH A PRIVATE BLOCKCHAIN NOT TOKEN
Cryptocurrencies are divided into two types: TOKEN & COIN. Both Coin and Token are built on Blockchain. Crypto investors often equate these two types. We are entirely different, so why are coins so much more valuable than tokens?
COINs have their blockchain that can operate individually. Also a foundation for building Dapps, Tokens and Protocols. All businesses that want to set up a Dapp, Token or a protocol have to pay DEFI a fee. They have to buy DEFI in advance to set up the program.
Feature Identification: Pay a transaction fee in its main coin. In the whitepaper of a real coin there is always a roadmap for Testnet / Mainnet, information techniques such as speed transaction, TPS (transaction capable), scalable network.
TOKENs are electronic coins that are parasitic on the Blockchain of other coins because they do not have their Blockchain. The most popular is the ETH platform called ERC-20. All ERC-20 tokens that are built on top of ETH are subject to a 1 ETH fee.
A simple example of it is given: Coin is a country. Token is a share of a company. The company should make how much to pay taxes for the country.
Token wants value, it must be built on a high-performance Blockchain platform because Blockchain is fundamental as a builder of everything on it. That’s why the top 100 of the highest cryptocurrencies, 80% of them, are all coins.
DEFI IS LIKE AN AUTOMATION PLATFORM
We can also take an example of Blockchain platform such as Grab, Dapp, Protocol, which are the people he drives Grab Bike, Grab Car, … Grab every month profits from running Grab Bike, Grab Car… it is a mutually beneficial relationship. But the benefits of the Grab platform are still the most.
So is DEFI based on De-fi Blockchain! Enterprises that want to set up Dapp, Protocol, and Token on the DEFI Blockchain platform must buy DEFI and then use DEFI to pay fees to the network to run those applications.
In the past, ETH’s blockchain has done this very well. Any token that wants to ICO on ETH’s platform creates tokens, creates Dapps / Protocols must buy ETH / EOS and pay the venue for the ETH platform an account. That is why the increasing demand for ETH has led to a rise in ETH price.
DEFI blockchain has higher performance than ETH, is refined to build Dapp, Protocol, Smart Contract, … The demand for DEFI in the future will increase. DEFI holders benefit from that platform generating profits and rising prices.
RIGHT POINT, RIGHT POINT
The right trend, the right time, is also one of the factors. A penny, if it is on track with the movement of the school, the win in hand is enormous.
The year 2016–2017 was the ICO trend: the peak of the ICO capitalization was $ 4 billion.
2018: Binance IEO trend
2020 -2022: The DEFI (decentralized finance) trend will explode; all DEFI will exist until no one is left.
But the first 3–5 years of the wave will help people get the best profits. DEFI capitalization can be one hundred times the ICO capitalization.
KIND OF DAPP TYPES WILL BE BUILD ON DEFI PLATFORM
In earlier 2021, a series of Dapps in Insurance, Game, Finance and many different fields will be built on the DEFI platform. Besides adding to home installers, which must use DEFI as a payment to the DEFI network, DEFI is also used as fee transactions in that Dapp.
DEFI is a blockchain with the positive, refined for Dapp building and smooth Dapp usage.
All of the above factors will help increase the demand for DEFI. Those are five reasons why DEFI will have an explosive increase in prices in 2021.