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Decentralised Ledger Solutions
Introduction to Decentralised Finance (DeFi)
The concept of centralisation implies that all control is designated to a central authority like a bank. The central body can supervise all banking operations, such as issuing money and transfer of money. Centralised ledgers provide reliable data storage and put more trust in a financial institution. However, such systems are vulnerable to security issues like transaction forgeries, fraud, and data corruption. A new system called Decentralised finance (DeFi) was introduced to disempower third parties and intermediaries like banks, so regular consumers can directly access the capital and financial services instead of relying on third parties. A Decentralised financial system empowers everyday people by giving them access to financial services like lending, borrowing, and asset trading.
Decentralised ledgers are highly transparent, secure and ensure effective circulation of money. Incorporating Decentralised technologies in financial institutions can also increase financial stability and greater diversity in the financial system. Examples of distributed ledgers include Bitcoin, Ethereum, and Ripple.
Blockchain technology and DeFi
The core technology behind DeFi is blockchain technology. In a Centralised financial system, a private ledger is used to keep the record of transactions. In contrast, a blockchain-based financial system uses a Decentralised and distributed public ledger to store encrypted transaction history.
A copy of the public ledger is kept by all parties using a DeFi application. This enhances security by providing user anonymity and prevents unauthorized alteration of records. Distributed ledgers are held by individuals, called nodes, around the globe. Since no intermediary is involved, blockchain parties record the transactions by adding new blocks to the transaction chain. Verification is also done by the parties themselves, making the system transparent and secure.
DeFi has been implemented via Decentralised applications, also known as Dapps. Decentralised applications run on a distributed network and handle transactions in cryptocurrencies such as Bitcoin and Ethereum. Examples of dapps include Chainlink, Cipler, Factom, and Augur. Here are a few applications of Dapps.
Non-fungible Tokens
There is a great deal of hype surrounding NFTs this year. But what NFT’s are actually? These are digital assets that cannot be traded or exchanged. NFT is a powerful concept that emerged from blockchain technology. It is becoming a popular way of trading artwork. The main difference between NFT’s and cryptocurrencies is that each NFT is unique and can not be exchanged with anything else; hence, non-fungible. NFT’s are data units stored on blockchains and can represent various types of digital data such as photos, videos, and audio files.
Although Decentralised ledgers have more strengths than Centralised ledgers, there is still a need for Centralised ledgers in financial institutions to keep records of financial transactions.
Bitcoin
Bitcoin is a highly popular example of a distributed ledger and the best-known use case for blockchain. It is the world’s first and largest cryptocurrency. It would not be wrong to regard it as “digital gold.” However, transactions are slow, expensive, and require a considerable amount of energy.
Failures of conventional banking systems, the Global Financial Crisis in 2009 led to the development of an alternative monetary system and a digital currency: the Bitcoin. Since Bitcoin operates through cryptographic methods, it promises to be censorship-free and free from bank involvement. Moreover, transactions are faster and cheaper. It also provides improved security since forging data is almost impossible Some applications of blockchain in the financial sector are discussed below.
Financial Transactions
Dapps are about making payments and can also be used for lending, insurance, and borrowing.
E-wallets
DeFi enables the creation of digital wallets that can operate independently, regardless of cryptocurrency exchanges. Users of DeFi can access almost everything, from cryptocurrency to blockchain-based games. Using Defi is as simple as setting up a crypto wallet and start trading digital assets.
Credit Ccoring
By using blockchain technologies, sharing of credit scoring information between multiple parties is possible without the risk of data being compromised. As the number of participants increases, the value of blockchain increases as credit risk assessments become more accurate.
Collaborative Security
Blockchain technology is used to exchange security information across financial institutions. Since all parties can participate in data sharing, the process becomes more credible and accurate.
Improved Privacy Control
In Centralised systems, customer data and documentation is maintained by a central authority. This method is vulnerable to security attacks and data breaches. Blockchain-based solutions keep customer data in a Decentralised ledger which reduces the risks of cyber-crimes. Also, customer data can be accessed after the consent of the customer, resulting in improved privacy control.
NuCoin
NuCoin is a concept based on blockchain technology combined with artificial intelligence. The motivation behind the development of NuCoin was to build a blockchain for Central Bank Digital Currencies (CBDC’s) and to eliminate reliance on human validators. It also aims to improve security and efficiency while being free from carbon emissions. It is a novel concept that aims to bridge the gap between cryptocurrency and the physical world.
NuGenesis is the core technology behind the development of NuCoin. NuGenesis aims to provide a new future for blockchain communities. The main objective behind the development of Nugenesis is to develop a system that can break the barriers to the adoption of the cryptocurrency ecosystem globally. NuCoin, the native cryptocurrency, aims to provide the following services.
- A community network that scales personal and social transformation and provides stability and security.
- A Decentralised grid of communities, mutually benefiting from each other.
- The vision of NuGenesis is a network of communities connected via the circulation of services, people, and technology.
I2N as your Partner for Blockchain Developments
Wherever you are in your journey with building an infrastructure for deploying blockchain services. The policymakers should gain first-hand knowledge about blockchain technology, its applications, and potential risks. By incorporating blockchain into all public services, including health, finance, transportation, and industries, I2N can help you create new business opportunities.
I2N can advise on how businesses can incorporate blockchain technology and design solutions according to the needs of an organisation.
I2N can help develop blockchain applications for smart contracts, key management, identity authentication, and operational efficiency.
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1997
The Pascal Foudation
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2012
Investments Attracting
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2019
Company Enter an IPO
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