Today let’s have a look at the difference between NativeDeFi vs. DeFi.
Tip: DeFi stands for Decentralized Finance. Read more about what DeFi is here.
Part 1: Greater Flexibility
Most DeFi projects are built on the Ethereum blockchain, where applications run on so-called virtual machines. Unlike native blockchains, blockchains like Ethereum offer greater flexibility for developers. This flexibility, however, makes them more risky for decentralized financial applications.
Part 2: Not built for the function of financial applications
When it comes to financial services, Ethereum uses smart contracts on the application layer, which could be prone to human errors and coding mistakes. In addition, they are simply not built for the function of financial applications, but rather a one-size-fits all solution. There, the code gets compiled and has to run through a virtual machine.
Part 3: No “on-top” application layer is needed
On blockchains like DeFiChain, the execution of the code happens directly on the native blockchain layer – no “on-top” application layer is needed. As a result, DeFiChain is perfectly designed for all kinds of financial applications and services.
Part 4: Why DeFiChain is more secure
Performing DeFi transactions on Ethereum takes more than 3,000 distinct steps – each with its own potential attack surface. On DeFiChain, just a few lines of code are enough, making transactions much more robust against potential attacks, and DeFiChain’s #NativeDeFi approach, more secure.
Part 5: Different Preferences
Different DeFi stakeholders have different preferences when it comes to security. While developers look at it from a purely technical perspective, wanting to be as flexible as possible in writing their code, end users only care that DeFi projects work in their favour by mitigating hacks and malicious attacks. DeFiChain addresses that by providing a secure and safe DeFi platform.
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Part 6: Main benefits of #NativeDeFi
The main benefits of #NativeDeFi include: Consensus happens directly on the native blockchain layer, the transaction costs are low, and the attack surface is low.
- What is DeFiChain?
- What is Decentralized Finance (DeFi)?
- DeFiChain: Earn Incredibly High Yields
- DeFiChain: The Decentralized Exchange
Ciao Daniel 🙂
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