If there is anything that made the crypto world go wild this year, it is definitely DeFi. The hype about it and the way it influenced the way people perceive cryptocurrencies and blockchain as a whole deserves to be studied.
Decentralized Finance, or DeFi, simply means a financial ecosystem that is not controlled by a centralized body. This is the alternative for the global financial system we have around us, it's like having a financial system where a body will not have to validate transactions.
This can be done by smart contracts on the blockchain, which explains why it is permissionless. It is to be noted that DeFi is not based on the hypes, pumps and dumps of coins, the DeFi mentioned here is about the ecosystem of finance as a whole.
There are some features that DeFi should have to be able to qualify as one:
- Resistance against censorship
- Accessible by all
These features are attributed to what a true decentralized finance stands for. It can be seen that the major aim is to be able to move one's fund (i.e. 100% in control of the owner) without having a central power to lord over it, and also to make all transaction visible to all.
The DeFi architecture is one that has to be inherently plug-and-play, the aim is to make it easy to build additional services. In short, it should be scalable!
For users to participate in the proposed decentralized finance market, decentralized applications (dApps) will be needed for interactions. This means that for a user to have easy interaction through DeFi, the DApp used should be deployed on the right network.
This is where Cartesi comes in, which is the operating system for DApps.
Cartesi provides the link between Linux and the blockchain, developers get to build on Linux environment without having to sabotage decentralization.
With the Descartes SDK that was launched in June, developers get to build computationally intensive DApps with all software tools available for a full Linux operating system. DApps preserve full decentralization and the security guarantees of Ethereum.
Read more about the Descartes SDK here: https://docs.cartesi.io.
DApps deployed on Cartesi are also highly scalable as you can do computations off-chain without altering the decentralization integrity. This makes it cheaper and as powerful as it can be.
With the recent partnerships, cartesi DApps can be deployed on 3 networks depending on the developers choice:
b) Matic &
c) Binance Smart Chain.
Cartesi is definitely the one of the best places out their for deploying DApps to interact with DeFi.
Important Cartesi links: