Making and managing financial investments can be quite challenging for a lot of people. It requires some degree of financial knowledge and technical expertise about the market for one to make any substantial gains. And this is in the mainstream financial market. In the crypto market, these challenges are amplified and even grow even further in the emergent DeFi sector, which has been labeled as the Wild West of financial markets.
DeFi sector is currently chaotic for both developers and investors
The DeFi space does not play by the normal rules but rather is tearing up the old rule book and setting up new ones. This has resulted in so much chaos with investors losing money due to poorly coded and unaudited smart contracts. Developers are faced with the uphill task of choosing the right blockchain on which to build their products due to their differing complexities. On the other hand, investors are having a hard time keeping track of their investments with products scattered across different blockchain networks that cannot communicate with each other.
Playing in such an environment can be quite challenging even for seasoned investors. There is a need for one to have sufficient financial understanding, programming knowhow and emotional stability to effectively manage a DeFi portfolio. Both developers and investors need effective tools to aid them navigate the DeFi sector by reducing the inefficiencies that characterise the open finance ecosystem. Luckily enough, Dfinance is building such tools to enable frictionless operations in the DeFi sector.
Dfinance platform streamlining DeFi investment
Dfinance is a decentralised layer-2 network that provides the requisite tools for creating and managing DeFi products. It is a platform that developers, financial experts, entrepreneurs or basically anyone with an idea can turn it into decentralised financial instruments. Dfinance is building a robust infrastructure that makes an otherwise complicated process quite simple. The platform’s underlying technology removes the technical complexities associated with blockchain technology and smart contracts. Put simply, users need not have programming skills or deep financial knowledge to create DeFi products on Dfinance. The platform is quite intuitive and easy to use as it guides its users every step of the way through detailed, in-depth explanations for each feature. This saves time and relieves users of the headache of developing blockchain-based applications.
Though it may appear simple on the surface, Dfinance is quite complex underneath. Looking under the hood reveals the magnificent creation that is Dfinance. The platform is a layer 2 protocol built on the Cosmos blockchain which utilizes the Tendermint Proof-of-Stake for consensus mechanism. The Tenderming technology helps is upholding security and facilitates cross-chain communication.
The smart contracts on Dfinance are powered by Move Virtual Machine, developed by Facebook’s Libra blockchain. Move is a high-level language that is quite easy to deploy even for non-developers thus enabling virtually anybody to create financial instruments on the platform. Additionally, Dfinance uses oracles to gather data and translate it so that it can be read by smart contracts.
As such developers can create financial products that can be accessed across multiple blockchain networks. Investors can also use the platform to manage their portfolio since they can access them from a single platform. This plays an important role in easing one of the major challenges associated with investing in the DeFi sector.
The simplistic design further improves the user experience, and gives investors the feel that they are interacting with real-world financial instruments. Dfinance sees such features as important bridges that help to ease the transition from the mainstream financial market to the open finance ecosystem that the DeFi sector is establishing. The platform’s capability to remove, or rather hide, the technical aspects of decentralised technology is expected to accelerate DeFi adoption by conventional market investors.