Saturday, June 10, 2023

DefiChain Brings DeFi to Bitcoin


DeFi is now on bitcoin because of DeFiChain, November 7, 2021.

DeFi offered seventy thousand transactions per second secured to bitcoin core.

With a 16 MB block size and a 30-second block period, DefiChain’s custom-built blockchain can handle 72,983 transactions per second.

Due to a sophisticated, intelligent contract language design, the currency offers fewer vectors for heists and hackers than its Solidity-fueled competitors.

Coming from Bitcoin Core, DFI employs a traditional Nakamoto Consensus, which modified into a Proof-of-Stake version by the developers. Every 30 minutes or 60 DFI blocks bind its state to the bitcoin blockchain.

DFI utilizes a representation known as a Merkle tree to store data in its current version. Merkle trees provide tamper-proof data storage as every alteration affects its branches.


To ensure a decrease in the attack surface of its smart contracts, DFI established its programming language nicknamed “Recipe” by extending bitcoin’s limited “Script” programming language. Since loops are necessary to take increasing tokens, Recipe does not allow loops to prevent heists.

DFI used masternodes, which compose blocks and validate transactions. These Masternodes must stake a minimum of 20,000 DFI to be eligible to submit a block in exchange for a reward of 200 DFI. The current node can write the Merkle Tree root of the chain’s state to bitcoin core every 60 blocks and collect another 200 DFI reward for their bitcoin transaction fees.

The hardware requirements for masternodes are decentralization-friendly. A good SSD and a standard desktop or laptop PC will suffice. Over 9,500 DFI masternodes are already operational, with a 69 percent yearly return on investment. Following a 90-day cooling period, fees from DeFi activities on DeFiChain burns and redistributes through fresh token minting over a year.

Stakes and Yields

Staking 20,000 DFI for a Masternode is very affordable as the current DFI price is $2.2. As opposed to Solana, you would need to bet a minimum of $1 million staked SOL to run a profitable staking node.

The DEX on DefiChain presently supports tokenized BTC, ETH, USDT, USDC, DOGE, LTC, and BCH and liquidity mining. On November 2, DFI-USDT pairs yielded 58 percent, and DFI-BTC pairs produced 55 percent.

The currency will reach $4.9 by the end of January 2022.

Upon closer scrutiny, there seems to be a problem with having a desktop wallet. To utilize DefiChain’s DEX, one would need a DFI wallet that would require users to install a CPU-intensive program. Fortunately, there is a solution in the form of a mobile wallet.

Another issue would be the decentralization of DFI. It also appears that DFI is relatively centralized, with the DeFiChain Foundation receiving a staggering 49% of the freshly issued coins and controlling 24.9% of the utterly diluted value.

U-Zyn Chua and Julian Hosp, the company’s founders, burned 250 million DFI, worth $400 million at the time, and now own about 10% of all DFI. On Coinmarketcap, the three wealthiest addresses control 69.5 percent of all DFI, but they are burn addresses. There is no longer any way to access the DFI.


The blockchain’s progress appears to be steady. Furthermore, a check at Github reveals a sizable crew and much activity. Fifty-six forks and 204 stars indicate a thriving open-source community. DefiChain provides live price feeds for many equities might show that equity tokenization is on the horizon.

External developers, such as this Masternode monitor bot for Telegram, build on DefiChain.

DefiChain has over 37,000 Twitter followers, and its postings have a high level of engagement, indicating a vibrant community.

DeFiChain has a total locked-in value of $850 million and rapidly increases.

In this late October 2021 alt season, DEX purchasing volume also increased dramatically.

Miguel Garcia
Miguel Garcia
Miguel Garcia is a writer for Cryptoconstellation. Miguel has always been fascinated with Crypto. He has experience in Business and finance. Miguel loves sport cars and football.

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