Why does Decimalchain believe in the power of the DeFi market and what was the reason for launching BSC?
Blockchain technology is used in many areas of the global economy, from logistics, finance and medicine. Translated from English, blockchain means a chain consisting of blocks. That is, the blockchain is a continuous and sequential chain of blocks that contain some information.
As mentioned earlier, blockchain technology is used in various fields, including the cryptocurrency economy and decentralized finance (DeFi).
DeFi is a system of Apps, platforms that work on the basis of blockchains. At the moment, many platforms operate on the basis of the Ethereum (ETH) blockchain. The competitor of the Ethereum blockchain is the BNB Smart Chain blockchain. Decentralized financial applications are created on the basis of smart contracts. Currently, a large number of platforms and services are working in the field of DeFi. Among the most famous are the 1inch application, the Synthetic protocol, created on the basis of the Ethereum blockchain.
Over the past 2 years, decentralized finance has gained great popularity among users and investment funds. It is due to a set of advantages.
What are the advantages of DeFi
The main benefit is decentralization. There is no such single governing body that would control everything. There is no overregulation characteristic of centralized sites. Transactions are transparent and are executed quickly. Also, there are no intermediary structures in DeFi.
DeFi apps have the source code in the public domain, so they can not only be checked, but also modified as necessary. Transparent and understandable rules are implemented in DeFi. Loans issued in DeFi are cheaper than those of banking institutions.
At the same time, DeFi applications have some drawbacks. These include high asset volatility. Besides, DeFi Apps are difficult to invoke responsibility in case of collapse or fraud as they have no centralized management body consisting of a circle of clearly defined individuals. Also, the amount of funds issued in DeFi applications is much less than that of conventional banks.
Nevertheless, the DeFi market continues to develop and the number of projects in it continues to grow. Now most of the decentralized financial applications are created on the basis of BSC, blockchain networks.
Binance Smart Chain is considered a leader in creating decentralized applications, as it offers low fees for transfers, provides wider scalability and security of DeFi protocols and services. Users can manage digital coins between various blockchains thanks to the BSC functionality. Due to the appearance of the BSC network, there was a huge increase in the entire Binance ecosystem, as well as the value of the token. Now BSC has already surpassed the popularity of the Ethereum network.
The demand from funds and users for new smartchains is increasing. And other smartchains are appearing on the DeFi market. In particular, this is the DecimalChain project.
Decimalchain also offers users a blockchain with significant bandwidth, high verification speed. Smart contracts are deployed in Decimalchain, 45 virtual assets are placed.
Inspired by the experience of BSC, Decimalchain developers create their own network, believing that its appearance will dramatically increase the overall capitalization of the project, fame in the field of DeFi, and the value of the internal token.