According to the DeFi Pulse website, studies reveal that the DeFi market has seen transactions of up to $9 billion and more. The growth seen is closely related to the world’s second biggest cryptocurrency, Ethereum (ETH) and it shows prospects of marking the beginning of a large change in how we use money.
Enthusiasts believe that Ethereum and DeFi could change the nature of financial services years into the future, as about 18.5 million bitcoin (BTC) is already in circulation out of the only existing 21 million. With DeFi gaining relevance in the blockchain technology, it is important to understand what its concept and opportunities. This leads to a good question…
What is DeFi?
In very short terms, DeFi is an abbreviation for “decentralized finance”. It is a term used to describe varieties of financial applications in cryptocurrency developed towards disrupting financial mediators.
Created with a concept drawn from blockchain technology; a technology that is not controlled by a single or central source but provides several entities access to history of transactions or ledgers. DeFi distinctively expands the application of blockchain, unlike Bitcoin, by implementing it in advanced financial use cases.
Radix, like other blockchains out there, function with nodes. When these nodes work together, they form a network. What this means is that when someone uses Radix, he or she interacts with a node. To make the communication a lot easier, this platform offers developers API Libraries in Java and JavaScript that they can easily add to their application.
The birth of Radix…
In recent times many DeFi projects have been created, as blockchain experts continue to research and adopt its concept. However, developers faced a number of limitations as many of these projects require hosting on infrastructures designed to suit DeFi apps.
These issues prompted the founder; Radix DLT Ltd, Dan Hughes and His team to develop Radix (a blockchain architecture developed to create a layer 1 protocol for DeFi projects). Radix was developed with focus on three major DeFi growth drivers; Access, Liquidity and Choice.
A quick investigation of the Radix Infrastructure…
This article considers two key parts of the Radix infrastructure;
i) The Radix Ledger
ii) The Radix Engine
The Radix Ledger
The Radix DLT — The Decentralized Finance Protocol ledger is designed to validate transactions that are processed through the platform. Unlike tradition blockchain infrastructures, the Radix platform processes these transactions by the Radix DLT — The Decentralized Finance Protocol ledger in parallel. This means that users are offered faster throughput and concurrency, and this is made possible because of the presence of the Radix DLT — The Decentralized Finance Protocol Engine (the main theme of this article).
The Radix Engine
As API libraries is to JavaScript developers, so are nodes to blockchain experts, and like every other blockchain infrastructure, Radix DLT — The Decentralized Finance Protocol runs on nodes. Radix DLT — The Decentralized Finance Protocol uses a ledger that utilizes a node software, known as the Radix Engine.
Developers use the Radix DLT — The Decentralized Finance Protocol app layer platform in the interacting with their DeFi projects just like smart contracts. The Radix DLT — The Decentralized Finance Protocol Engine is quite different from the ideal smart contracts because it’s contracts are built similar to real world finance models. These components/smart contract are developed from finite state machine logic, with their behavior defined by activities that translates a discrete existing before state to an output or after state.
For DeFi to reach its peak, it requires developers who will build new decentralized applications to replace the typical closed systems. The Radix DLT — The Decentralized Finance Protocol platform reduces this burden by providing a platform that will grant developers ease in creating effective apps and ecosystems.
To get more insight on Radix DLT — The Decentralized Finance Protocol, Visit:
Website: https://www.radixdlt.com/
Facebook: https://www.facebook.com/RadixDLT/
Twitter: https://twitter.com/RadixDLT
GitHub: https://github.com/radixdlt
Telegram: https://t.me/radix_dlt
Discord: https://discord.com/invite/6M4gD8B
Medium: https://medium.com/@radixdlt
Reddit: https://www.reddit.com/r/Radix/
