BoC’s Unique Selling Proposition II: A Comparison with BlockFi.
The Crumble of CeFi Platforms.
With BlockFi becoming the most recent crypto-service company to file for bankruptcy a couple of weeks ago, the need for self-custody has never been this evident because self-custody is the foundation of transparency in decentralised finance.
While BlockFi enables its users to earn interest on crypto assets just as BoC does, the varying models of centralised finance (CeFi) and decentralised finance (DeFi) are a clear distinction between both.
CeFi vs DeFi: Summary
CeFi are companies which offer blockchain assets and services to customers who pay transaction fees which contribute to their revenue. Contrary to DeFi protocols, their applications are not essentially built on the blockchain nor are they smart contracts, which interact independently.
Regardless of these, CeFi has a large number of paying customers and continues to rival the offerings of DeFi. The simplistic user and crypto service purchase experience is often the first avenue new users utilise to own crypto currency.
BoC vs BlockFi: KYC.
BoC’s only prerequisite is the ownership of a cryptocurrency wallet such as Metamask. On the other hand, BlockFi as a CeFi platform requires users to undergo an identity verification process reffered to as “Know-Your-Customer” (KYC).
BoC eliminates the time required to sign up and undergo identity verification, combining this with a state-of-the-art user interface, which a number of DeFi protocols lack.
BoC vs BlockFi: Service Offerings Compared.
BoC currently offers yield generation cryptocurrecies, with Ethereum and stablecoins yield generation currently implented. With personal banking, payment solutions, institutional services and a number of services scheduled to launch in the future, BoC has a goal to become the first decentralised bank. BlockFi offers three main services, namely; purchase and trade, interest and loan services for cryptocurrencies.
BoC vs BlockFi: Yield Generating Methods.
The sources of yield for BoC are from obtaining AMM transaction fees following providing liquidity, earning interests on funds borrowed, governance token rewards and staking rewards. Interest generation by BlockFi is made possible by lending crypto assets in institutional markets and from the purchase of regulated equities and futures.
BoC vs BlockFi: Yield Compared.
Both BoC and BlockFi enable users gain interests on crypto. BoC as a yield optimiser achieves this by aggregating yield from automated market makers, lending protocols and others, on various blockchain networks.
In comparing BoC yield on stable coins to BlockFi’s, the most offered by BoC is 11%, while the highest interest rate offered by BlockFi is 8.75%
BoC vs BlockFi: Summary.
A clear distinction exists between BoC and BlockFi, although both enable users gain yield on crypto assets.
BoC offers self-cutody and yield optimisation, without the hurdles of KYC in a unique user experience by leveraging automated market makers, lending protocols and others, on various blockchain networks.
For a more indepth undertstanding of the BoC, please refer to BoC Docs.
