DeFiChain is a decentralized blockchain project created in 2019 by Uzyn Chua and Julian Hosp, who also co-founded CakeDeFi. Officially launched on April 26th, 2020, DeFiChain is designed for decentralized finance (DeFi) services. Its main goal is to offer a secure, fast, and accessible infrastructure for various financial applications.
DeFiChain combines the security of the Bitcoin blockchain with the scalability of the Proof-of-Stake (PoS) algorithm. As a decentralized project, it doesn't have a CEO, and users can act as their own banks, minimizing counterparty risks. With DeFiChain, trusted third parties are unnecessary for financial services, which reduces dependency and encourages innovation in the DeFi ecosystem.
DeFiChain provides decentralized financial services, such as:
- Decentralized loans
- Decentralized wrapping of tokens
- Oracles for decentralized price determination
- Decentralized exchanges (DEX)
- Transferable payables and receivables
- Decentralized unsecured debt
- Asset tokenization
- Profit distribution
Users can access these services using the platform's native coin, DFI, which powers all transactions on the blockchain.
Native and Non-Native Coins
DFI is DeFiChain's native coin, much like ETH for Ethereum and BTC for Bitcoin. A native coin is the primary currency used for blockchain transactions, while tokens are considered non-native coins.
DeFiChain also supports decentralized tokens, or non-native coins that represent real-world assets, such as stocks with 150% collateral backing and cryptocurrencies with 100% asset backing. These tokens function similarly to transacting traditional assets like real estate and commodities.
Connection to Bitcoin Blockchain
DeFiChain builds on the Bitcoin blockchain for safety and security, using a fork of Bitcoin's code to leverage its strong security features from a code perspective.
DeFiChain's MainNet went live in May 2020, using the PoS algorithm to offer low fees and fast transaction speeds for efficient DeFi applications.
The platform's native coin, DFI, was distributed via staking rather than an initial coin offering (ICO), with the price determined by supply and demand.
DeFiChain aims to establish a world of decentralized finance where users can interact without traditional financial institutions. By providing various DeFi services, the platform empowers individuals to manage their finances independently, while enjoying the security, speed, and accessibility that DeFiChain offers.