About

DeFiChain is a specialized blockchain dedicated to decentralized finance (DeFi). It offers functionalities like decentralized lending, token wrapping, and exchanges. Prioritizing high transaction throughput and security, it is a non-Turing-complete blockchain, focusing on financial services efficiency, with features built upon the Bitcoin ecosystem for enhanced reliability.

History

DeFiChain views the cryptocurrency industry based on a simple premise: People should be in control of their finances. However, current systems are still far from providing financial services that are truly under the control of the people who use them. The goal of DeFiChain is to give people (and in the future, machines and devices) seamless access to decentralized financial services, by bringing full DeFi capabilities to the Bitcoin ecosystem.

In 2019, the team identified the core challenges to bringing DeFi mainstream

• Most general purpose platforms like Ethereum require a large amount of coding to provide financial services, increasing the risk of hackability or bugs in the code.
• There are large issues with scaling on many of these platforms — increased usage of a particular dApp affects the gas prices for all transactions on the platform.
• Governance models of most of today’s blockchains are immature and showing signs of politicization, centralization and uncertainty. 
• DeFi is concentrated to a few platforms — hence the space is missing out on a big part of the crypto market. The solution to the challenges were suggested as:
• Build a blockchain specially for DeFi use cases
• Build on top of Bitcoin and anchor to the Bitcoin blockchain for maximum security
• Support all major cryptoassets
• Ultilize a hybrid proof of stake and work consensus mechanism
• Incorporate on-chain governance system

With atomic swap interoperability on Bitcoin and other major crypto projects, DeFiChain aims to enable crypto users to seamlessly transact over a wide array of financial instruments in a fully unrestricted, decentralized, fast and secure manner with low transaction fees.

The initial function set of DeFiChain includes decentralized lending, wrapping of tokens, pricing oracles, exchanges, futures trading (equities and commodities), transferable debts and receivables, non-collateralized debt, asset tokenization distribution of dividends.