The Best Out of Decentralized Finance — Satcoin
DeFi (Decentralized Finance) is familiar to veterans of cryptocurrencies. It allows anyone in the world to directly conduct financial activities anytime and anywhere without relying on any centralized entity to provide credit intermediary or endorsement.
The concept — DeFi came to the forefront in early 2019, and the value locked has increased by 2 times in that same year. The momentum continued in 2020. As the imaginary boundary of blockchain technology and finance continues to expand, the total value locked has now exceeded 2 billion US dollars. At present, the combination of DeFi and finance is a series of financial applications developed based on an open and decentralized platform, and the whole business process operates on the chain.
Compared with traditional finance, DeFi is more fair, open and inclusive, for the following reasons:
1.DeFi does not need to rely on any centralized entity to provide credit intermediary or endorsement;
2.There are no barriers to entry, and it’s open to anyone with Internet connection;
3.It is not controlled by any centralized entity, meaning that no one can block or reverse any transaction.
In terms of current development milestone, it can be said that DeFi and traditional finance come from two different fields. For today’s financial industry, traditional finance serves the real economy, which is accompanied by risk transfer, resource allocation and value discovery. While DeFi has nothing to do with the real economy and fiat currencies, and it’s mostly dealing with things in the cryptocurrency space.
In fact, blockchain design is all about these three elements — decentralization, security and scalability; It is impossible for the blockchain design to perfectly meet these three requirements. All blockchain designs are based on the balance of their respective priority. However, many old and new DeFi users seem to be more interested in the scalability of the network, which can attract a larger user base, than in expanding the decentralized network and enhancing security. This brings us a lot of novel projects, tokens, and protocols, but hides the weakness that lacking of strength. Security and decentralization have been sacrificed in the name of programmability and transaction speed.
Satcoin aims to be a pioneer in combining Defi and traditional finance, to build a smart bank that guarantee users’ privacy and financial security, and to extend the application of cryptocurrency to daily life. Therefore, the design of Satcoin blockchain takes into account the field and application requirements, thus greatly enhancing its security. After all, payment is all about the security of users’ money and the speed of transactions. In terms of security, Satcoin is a cryptocurrency based on SHA256. The feature of SHA-256 is that the output value under the same input information encrypted with SHA256 is unique, and when there are changes, even minor changes, in the information encrypted with SHA256, the results will be completely different. The SHA-256 algorithm used by Satoshi is part of the SHA-2, which was recognized as one of the most secure and advanced algorithms when Satoshi Nakamoto invented bitcoin (2009). At present, no algorithm has not been proposed to crack SHA256, SHA384 and SHA512; The ciphertext of SHA256, SHA384, and SHA512 is 64 bits, 96 bits, and 128 bits respectively. Some websites with high security requirements may have used SHA256 algorithm to encrypt passwords, while SHA384 and SHA512 are rarely used at present due to the long ciphertext, encryption time and low efficiency. From this point of view, the SHA256 used by Satcoin is the most secure and appropriate. While security is guaranteed, Satcoin is not far behind in terms of transaction speed. Compared with Bitcoin, the block generation speed of its blockchain has been increased by 4 times, that is, it takes 2.5 minutes to generate a block, which can fully meet the needs of retail transactions and consumer payment & transfer.
Satcoin may not have a shocking breakthrough and bring new technologies and applications to the cryptocurrency field, but it perfectly combines the essence of Defi and the most secure & reliable cryptocurrency technology, maintains fast transaction speed and matches the most practical and widely used application scenarios. In short, Satcoin absorbed all the edges, bringing the technical advantages of cryptocurrency and blockchain into people’s daily life. In the future, in addition to aspiring to become a “smart bank” in the cryptocurrency industry, Satcoin will also create multiple network and physical malls using Satcoin as transaction and payment currency, so as to further expand the application of Satcoin. We believe that in the future, Satcoin will set off a revolutionary tsunami in traditional finance, facilitating real-time cross-border transfer and transactions. It will also be significant for the history of cryptocurrency. Cryptocurrency is no longer a hype, a string of words or numbers on the exchange, but a major technological advance that really comes into people’s lives and brings practical applications.
