Blockchain, as we know it, has continually evolved in ways that are beyond imagination.
Since its emergence in late 2008, the technology has evolved from a simple decentralized storage center that facilitates the process of recording transactions between cryptocurrency traders and tracking assets to something as advanced as typing. NFT and execution of liquidity protocols.
Over the years, blockchain technology has transcended running on algorithms, such as PoW to PoS to DPos, and even to PoSA. Likewise, technology has evolved from CeFi to DeFi and CeDeFi. However, TeDefi, another communication protocol has emerged with the aim of improving the interaction between users and smart contacts. What does TeDefi involve and how is it different from other blockchain consensus mechanisms?
What is TeDefi?
Before we get into the details of its new blockchain consensus system, let’s take a look at other blockchain ecosystems and consensus mechanisms that run the blockchain network.
Centralized Finance (CeFi)
Before the advent of democratic DeFi, CeFi was the boss. Back then, the only reliable method of buying and selling digital assets was centralized exchanges, also known as CEX. CEXs were seen as dictators in a way as they only allow users to trade cryptos based on their order books. Less popular coins or tokens were not negotiable. Although they are somewhat stable and fairly simple to use, they can be easily hacked.
On top of that, they can develop software or node issues that can potentially stop the exchange for a few hours. This means that any contemplated transaction will not be executed. There is also a lack of transparency and absolute control over funds, as users cede power to the exchange. These are the issues specific to CEXs.
Decentralized finance (DeFi)
As stated earlier, decentralized finance is more democratic than authoritarian. DeFi includes applications that run on a decentralized blockchain. DeFi is not centralized, so users have absolute control over their funds. This prevents users from trusting a third party or intermediaries to manage their assets. Uniswap, PanCakeSwap, SushiSwap are examples of decentralized applications. DeFi and DEX allow borrowing and lending, and liquidity providers receive incentives as a reward for adding liquidity to the pool.
With DeFi applications, negotiability is improved. It allows for the creation of tradable tokens that represent a part of an investment, say real estate or stocks. They are very transparent in their transactions because the data is publicly available. Users can easily track transactions, calculate cash pool amount, etc. However, DeFi applications are prone to cyber attacks. As they walk through history, users will discover a number of smart contracts that have been hacked, with cryptocurrency worth millions of dollars stolen.
PoW smart contracts
Ethereum was the first blockchain to be launched using the Proof-of-Work consensus protocol. PoW allows computer nodes to agree on the validity of information published on the ETH blockchain and prevents any attack on the network. However, PoW has issues, such as high transaction fees and low scalability.
PoS consensus mechanism
Proof-of-Stake was described as a better alternative to the PoW algorithm because it consumed less power and the transaction fees were low. This then evolved into DPoS or Delegated Proof of Stake, where investors place coins on a list of elected delegates who mine new blocks on the network. However, scalability was still the issue with these mechanisms.
Is TeDefi a game-changer?
To solve scalability, high power consumption, high fees, and other bottlenecks prevalent in other consensus mechanisms, TeDefi has emerged. TeDefi is an innovative, cross-chain compatible proof of stake authority consensus mechanism that provides an infrastructure for scalable Telegram Bot DApps. TeDefi allows validator nodes to interact directly with Telegram Exchange Bot via MTProto protocol, thus eliminating the gateway problem on DEXs.
TeDefi is focused on creating an easy-to-use blockchain ecosystem that makes it easy to trade and invest in cryptocurrencies and access decentralized applications in their Telegram Bots. The blockchain network allows developers to build Telegram Bots on top of TeDefi without the bottlenecks that prevail in other ecosystems.
In summary, the advantages of TeDefi are;
- Low fuel costs
- Direct communication with the Bot
- Reward validation nodes
- Flawless trading and investing of digital assets.
TeDefi is fast, scalable and a project that has come to stay.
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