Review ZenChain: The optimal combination of DeFi and NFTs.

Since early 2020, the DeFi trend has been recognized as the trend of wealth and transparency, it gives crypto investors abilities to borrow, lend, trade, and invest in a decentralized and transparent platform like a traditional financial bank.

Until mid of March 2021, a total of over 42 billion US dollars have been locked in many Defi protocols. Cryptocurrency and Decentralized Finance (DeFi) offer a way to start with a new system, circumventing the difficulties faced in changing the finance industry. While crypto has attracted billions in investments, decentralized financial services are lagging. When it comes to investment in cryptocurrency, crypto investors can buy and sell, but that’s it. The cryptocurrency itself cannot be invested in the same way fiat currency can be. Initial attempts to create peer-to-peer lending and asset tokenization so far have proven partial and unreliable, so investors have extremely limited options when it comes to an investment of their crypto assets. The potential is enormous to provide financial services in crypto, the same way they are offered in fiat currency.

First, we must be clear about what DeFi is. DeFi, in its ideal form, exhibits four properties.

• First, non-custodial financial services allow participants to exert full control over their funds at any point in time.
• Second, the permissionless nature of DeFi allows anyone to interact with financial services without being able to be censored or blocked access by a third party.
• Third, DeFi is openly auditable, which means that anyone has the ability to audit the state of protocols-e.g., that they are fully collateralized/healthy.
• Fourth, financial services can be arbitrarily composed such that new financial products and services can be created similar to how one is able to conceive new Lego models based on a few basic building blocks.

Issue came

Moreover, at a technical level, the blockchains underlying DeFi are facing significant challenges. Blockchain transaction fees have risen considerably during periods of congestion, with the fees for relatively simple smart contract operations running into the hundreds of dollars. Rising transaction costs price out small transactions, in turn restricting the set of transaction types for which the layer-one blockchain can be used.

In conclusion, since over 90% of DeFi projects are based on Ethereum blockchain, we will consider the challenges for Ethereum challenges as DeFi challenges:

Scalability

Another big problem with DeFi projects is the scalability of the host blockchain. Two major problems arise from the scalability problem:

• Transactions take a long time to be confirmed
• Transactions are extremely expensive at times of congestion

Ethereum at full capacity can process about 13 transactions per second, while centralized counterparts can process thousands and thousands of transactions. And Ethereum sing

Smart Contract Problems

Smart contract vulnerability is a major source of issues for many DeFi projects. If there is the slightest flaw in the code of a smart contract, it can lead to loss of funds.

Low Interoperability

There are different types of blockchains such as Bitcoin, Ethereum, Binance Smart Chain, each with its own DeFi ecosystem and community. Interoperability enables DeFi platforms, tools, DApps, and smart contracts on different blockchains to interact with each other. Until this becomes simpler, many projects are siloed.

Lack of Insurance

Insurance protects investors in the event of hacks or other fraudulent activities. Insurance plays a very important role in centralized finance while it is much rarer in DeFi.

ZenChain solution

“The ZenChain Foundation is developing ZenChain, a blockchain specifically dedicated to decentralized financial (DEFI) applications and non-fungible tokens (NFTs). By focusing on the functionality of the blockchain and dedicating it specifically to DEFI and NFTs, ZenChain provides unparalleled high transaction throughput, reduced risk of errors, and intelligent feature development specifically for the fulfillment of financial services for both fungible token and non-fungible token (NFT) on the blockchain”

ZenChain gives some solution to resolve this problem:

- Scalable, high-throughput Blockchain with Tendermint Power

- Bridge from Etherum, Tron, Binance smart chain make cross-chain Defi and NFTs solutions.

- Decentralized pricing oracles built-in

- DeFi primitives built-in: Dex, Lending & Borrowing, token IDO, insurance.

- Non-fungible Token applications like mint, auction, rent NFTs

• NFTs X DEFI: bring the power of NFTs to Defi ecosystem and Defi to NFTs

Allocation Detail

Moreover, for the token allocations belong to Public IDO, Early Contributors, and Strategic Partners, if any of them have been unallocated, unsold or unused, this proportion will be burnt before trading. There are many benefits of burning the Zen token as we know:

• Help to reduce the inflation rate.
• Keep it fair for both early partners and public investors.
• Encourage to increase the value of Zen token.

ZEN token release schedule

Important Links

Website: http://www.zenchain.co/
Litepaper : https://docs.zenchain.co/
Telegram group: https://t.me/zenchaingroup
Telegram channel : https://t.me/Zenchainofficial
Twitter: https://twitter.com/zenchainco
Facebook: https://www.facebook.com/Zenchainofficial
Github: https://github.com/zenchainprotocol
Medium: https://medium.com/zenchain-protocol

Author

Bitcointalk Username: kaylin konewi
Bitcointalk Profile Link: https://bitcointalk.org/index.php?action=profile;u=2769253
Address: 0x804F83B46a700a022b59Bac947A3Cf2B79fb3fc4