In the context of the 2008 financial crisis, Bitcoin was born, and its founder Satoshi Nakamoto wrote such a sentence in the genesis block: "The Times 03 / Jan / 2009 Chancellor on brink of second bailout for banks". "The minister stands on the edge of the second bailout of the bank."
1. Bitcoin is considered to be the child of the financial crisis and has the function of "digital gold" financial hedging
Peer-to-peer, not controlled by the government, relatively anonymous, difficult to track, including its deflationary economic model, Bitcoin's design concept is completely opposite to the current government legal currency system. In the financial crisis, Bitcoin is considered to be the complement of today's currency system. Some people call it "the son of the financial crisis", and some people call it "digital gold."
Until then, Bitcoin has been doing a good job of storing value. The initial price of Bitcoin was $ 0.0025, and a huge price increase began from the first halving in 2012. It reached $ 20,000 at its peak in December 2017, an increase of up to 8 million times. After experiencing the highest peak, the bitcoin price began to fall, and before last week, the bitcoin price stood back at $ 9000 again.
2. The financial market plunged, and the Bitcoin hedging function was questioned
On March 8, the new crown epidemic was superimposed on the crude oil price war, and the global financial market was in distress.
Compared with the gold price that hit a high of $ 1,700 on the evening of the 9th, bitcoin called "digital gold" did not play its hedging function. Instead, as the stock market opened a sharp decline model, from $ 9,000 to 7,900, The currency price fell by 12%.
Some people think that this plunge is due to the shipment of PlusToken traders, and some people think that Bitcoin has been affected by the global financial market and there has been a large-scale capital flight ...
However, some analysts believe that bitcoin's plunge is in line with its price law. After the bitcoin price broke through the support line at the end of February, it has in fact indicated that the bitcoin market has entered a downward trend. The common market performance in the trend, at the same time, does not rule out the possibility of Bitcoin's price surge due to halving.
As a decentralized electronic currency, Bitcoin has completed part of its historical mission. It has given people a new understanding of the currency system, and the concept of DeFi has emerged. At the same time, it is also a financial reform experiment. We also Will witness the results of this experiment.
3. Deficiency of Bitcoin and Ethereum in the DeFi field
If we say that Bitcoin is the pioneer of DeFi, Ethereum is the pioneer of DeFi. With its smart contract function, most of the financial agreements are issued on Ethereum, which has generated considerable DeFi activities. These include: asset issuance, asset exchange, stable asset generation, borrowing, etc.
Faced with the challenges posed by future large-scale DeFi applications, Bitcoin and Ethereum will have the following deficiencies:
1. Insufficient performance
Ethereum's TPS (about 15 transactions per second) cannot meet the availability of large-scale DeFi applications. When popular applications appear, it will cause network congestion. For users and applications, there is room for improvement in usability and experience.
2. High handling fee
Bitcoin and Ethereum are acceptable as transaction fees for cross-border transfers, but if used as a DeFi application, in the high-frequency processing of user transaction scenarios, this part of the fee appears to be slightly higher, which will affect user revenue. .
3. Ecological barriers
Bitcoin and Ethereum, as the native public chain, have formed their own communities and ecosystems. On the one hand, some interest groups maintain the development of the ecology. On the one hand, they also hinder some emerging applications or users from entering this ecosystem. Fang hopes to convert from POW to POS through upgrades, which is met with resistance from miners.
4. DREP lays a solid foundation for the next generation of DeFi
DREP is committed to creating "connectors" and "toolboxes" based on blockchain technology, providing solutions that are flexible, easy to use, and uninfluential for users. Based on DREP's underlying public chain, DREP decentralized ID system, DREP reputation protocol layer and DREP SDK, it is possible to build an open-chain data ecology and break the status quo of public chain ecology.
In terms of positioning and technical characteristics, DREP is very suitable as the underlying basic network of DeFi. It has the following outstanding advantages:
1. High performance and low cost
DREP innovatively proposes a Layer 2-like expansion optimization method-Smart Pipeline to enhance the data batch processing capability, and provides developers with corresponding development tools to break through the development constraints of the existing public chain.
The DREP chain adopts a two-tier architecture of main chain and sub-chain, which does not affect the degree of decentralization and security, while improving the scalability and strengthening the efficiency of the bottom layer of the blockchain. In the DREP open source test network, after the public network test on January 8, 2019, the DREP chain TPS peak value exceeded 12000.
2. DREP DID supports DeFi users to manage assets across chains and platforms
DREP ID can integrate various encrypted digital currencies through the DREP client, allowing users to enter through the DREP client
One-stop management. Bind the addresses of different platforms to DREP ID, you can make different designs through cross-chain interoperability, etc.
Platform account transfer and other management.
This function is not limited to the application of blockchain, but the traditional (centralized)
Taiwan and other companies carry out cross-platform management and carry out assets on the basis of not changing the original platform's numerical system, integral system, economic system, etc.
With data integration and information encryption protection, a complete decentralized closed-loop ecology is formed.
3. DREP SDK lowers the DeFi development threshold
DREP SDK is a developer tool component developed by the DREP team to support various DApp on-chain. DeFi application developers can publish multi-kilometer asset-supported versions with one click, while achieving rapid development for different vertical areas.
Taking the game industry as an example, the DREP blockchain game SDK includes the following content, which will continue to increase with future development:
- The core advantage of the game account module is based on the cross-chain DREP ID, which breaks the current status of public chain users' ecological division;
- The core advantage of the payment transaction module is to further optimize the digital asset transaction experience through the built-in payment and transaction engine;
- The numerical operation module, game operation data and game internal economic system can all realize data visualization, transparency and configurability.
We believe that the development of DeFi will not stop because of bitcoin price fluctuations, and DREP is prepared in this process, with its own technical advantages and community advantages, to help DeFi applications lay a solid foundation and start new Chapter.
Follow DREP's WeChat public account "DREP" to learn more about project dynamics; to enter the official community, please add the official small customer service WeChat, DREP is much more cute: DREP_Foundation
