Conflux Network
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Conflux Network

How Conflux Network is Poised to Fulfill the Global Promise of DeFi

Photo by Elena Mozhvilo on Unsplash

The world of Decentralized Finance (DeFi) is expanding at breakneck speed. New ventures are flocking to the space as demand for new forms of private, secure investment grows. In April 2020, total value locked (TVL) in DeFi was $939 million. This has surged to $64.85 billion in the space of a year — an expansion of more than 6,000% in 12 months.

As DeFi becomes increasingly attractive to people and institutions across the investment landscape, it is also becoming more complex. With this in mind, the Conflux team has designed a unique protocol for decentralized transactions that promotes cross-border, multi-chain collaboration. This focus on multi-chain interoperability, combined with the team’s unique international perspective and approach to risk management, positions Conflux to transform the DeFi space.

Unique international position

As the only state-endorsed public blockchain in China, Conflux occupies a unique international position. China is a large and growing market, currently boasting more than 38,000 blockchain businesses. And it’s clear that Chinese investors are having an impact on decentralized financial assets: 60% of all Tether trading takes place on Chinese cryptocurrency exchanges, for instance.

To meet the demands of this rapidly expanding market, developers and investors must have an understanding of relevant local regulations as well as the environment in which that market exists. Success will depend on the value created by a project and on positive and constructive relations with local regulators and authorities. Just as Coinbase has succeeded in part by leveraging its understanding of the unique landscape for crypto in the United States, Conflux is particularly suited for developers looking to build compliant DeFi technologies and enter the Chinese market and/or to expand further into Asia­. ­

Multi-chain connectivity

In addition to its prime position in a large and fast-growing market, Conflux has unique technical features that set it apart from other blockchains and DeFi platforms. Among the most revolutionary of these features is ShuttleFlow — a cross-chain asset protocol that allows assets to flow freely across different public blockchains. In essence, ShuttleFlow serves as a multi-chain blockchain bridge connecting disparate decentralized networks. By building these bridges and meshing networks, Conflux smooths and speeds the exchange of digital assets, while also increasing liquidity, since use cases can move beyond the asset’s original chain.

Cross-chain operability also links together traders and markets that have been isolated in silos into a single, cohesive ecosystem. For example, DeFi has become a leader in providing credit and borrowing options in emerging markets, but the lending options are constrained by limited liquidity. ShuttleFlow alleviates this problem by facilitating the exchange of digital assets across networks. Conflux can therefore support disruptive, decentralized financial markets with the potential to spur exponential growth in DeFi, all with extremely low transaction fees, that are a fraction of Ethereum gas fees.

Under the hood, Conflux stands out in its approach to risk mitigation. There are certain technical and regulatory risks for any DeFi venture. DeFi networks can be subject to errors, bugs, or front-running vulnerabilities exploited by hackers. On the regulatory side, as with any decentralized system, DeFi networks are subject to the governing authorities of the jurisdictions in which they are located. Conflux can help projects mitigate these risks by ensuring a secure network design, and maintaining close and constructive relationships with relevant regulatory bodies. Additionally, Conflux uses a unique Proof-Of-Work algorithm and Staking Contract that incentivize miners to keep the network secure.

Accelerating DeFi’s continued growth

Success in DeFi is increasingly important, as new ventures as well as traditional businesses and investors move to enter a thriving market that offers entirely new financial and technical possibilities. And Conflux makes the DeFi space more dynamic; not only is it uniquely positioned to access a rapidly expanding Chinese market, but its innovative multi-chain bridging technology, already planning to incorporate more chains, and top-notch security bring new capabilities to the industry. From expanding global opportunities to revolutionizing traditional financial systems through cross-chain, cross-border, decentralized finance, Conflux is poised to help drive DeFi on a global scale, across protocols and borders..

Learn more about Conflux




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Conflux Network

Conflux Network

Conflux is a PoW + PoS hybrid first layer consensus blockchain for dApps that require speed at scale, without sacrificing decentralization.

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