Steem Crypto Challenge: Diving Into DeFi: DeFi Blockchain Design

I have been in a continuous research on DeFi this week. Thanks to @steemitblog, @steemcurator01 and @steemcurator02 on this great initiative.

Today, being my third entry to this challenge, I will be focusing on DeFi blockchain designs. Join me as we proceed.

When we talk about design, we consider parameters. Since DeFi is designed to bring ease and convenience to businesses, the following parameters are incorporated into it’s design:

It is Fast and Scalable

The speed of transaction has been one of the problems with other blockchains, example bitcoin and Ethereum.
Thus, Defi is designed to employ transactions at the rate of over 2,300 transactions per second (TPS).

This is possible with a designed block size of 16 megabyte and block time of 30 seconds.

This way, businesses can thrive on it without undue delays and energy wastage.

The decentralized transactions on DeFi blockchain can also employ a manageable computer and bandwidth requirements to ensure this range of speed and scalability.

Robust and Secure

The DeFi blockchain employs bitcoin robustness and security. This is because bitcoin has the most robust security and robustness in the world and since it has been running since 2009 without any issues, the track record is enough to built business confidence on.

Thus, the DeFi blockchain is built on bitcoin core 0.18. it is written on C++ and more languages like Rust is being incorporated.

The incorporation of bitcoin security and robustness will enable the DeFi blockchain to be easily integrated into exchanges and apps that support bitcoin.

Non-Turing-complete Smart Contracts

DeFi transactions are smart contracts based. Imagine getting borrowers to pay back lenders without involving a third party. It’s the smart contract that provides the conditions of lending in the code, that way lenders get back their money without worries.

DeFi instruction sets incorporates opcode support in its smart contract. This is to complement and work with the existing script language of the Bitcoin core protocol.

Decentralized Consensus Mechanism

DeFi leverages on Proof of work (PoW) used by Bitcoin to provide hashing of staking nods while majoring on consensus on the use of Proof os Stake(PoS).
DeFi blockchain offers more potential for easier and faster decentralization of mode infrastructure and ownership.

Immutable through Block Anchoring

In order to ensure immutability in the DeFi blockchain, DeFi anchors it’s block on Bitcoin blockchain every few blocks. That way miners will be given 51% attack costly enough to keep the blockchain both immutable and decentralized.

That’s how much we can take for this third entry.

For the fourth entry of this challenge, I will be focusing on Proof of Stake in details and DeFI Building Blocks.

Stay Tuned.