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DeFi only has Ethereum? Is CVT expected to overtake Ethereum and become the breaker of DeFi?

2020 is regarded as the “year of DeFi”. Thousands of DeFi (decentralized finance) applications have emerged on the market, ranging from lending, stable currency exchange, to on-chain oracles, then to derivatives, leading cross-chain transactions and liquidity mining projects are contending with each other. But behind the popularity of DeFi is actually the remarkable result after the explosion of decentralized thinking, and this is also the essence of the blockchain spirit.

DeFi boom

In June of this year, the DeFi market ushered in explosive growth. According to relevant data, on June 25, the total market value of DeFi exceeded US$6 billion; on July 4, the total market value of DeFi was US$6.6 billion; on July 15, the total market value of DeFi was US$7 billion; on July 30, the total market value of DeFi was US$9 billion. And this situation continued until August.

DeFi stands for decentralized finance. Compared with the centralized finance led by banks and traditional exchanges, DeFi is built on the blockchain and believes that “code is king”. It solves various shortcomings of traditional finance, including transparency, high cost, high threshold, and inflexibility, and other issues.

The DeFi concept was born in 2018. It refers to a new type of financial system that uses protocols and smart contracts to replace intermediaries. Applications derived from it must follow three principles: run on the public chain, open source code, and must be financial applications . Such as decentralized exchanges, digital currency mortgage lending products, etc.

The term decentralization is one of the most commonly seen words in cryptoeconomics, and it is often regarded as an important basis for whether it is a blockchain or not. In terms of technology, the decentralization of the blockchain is a kind of subversion. It mainly solves the problem of trust, makes all fields more open and transparent, cultivates new space, new finances, and new possibilities, and opens up a new door for the public to the future of blockchain.

DeFi bull market starts, public chain space is crowded again

Relying on the outbreak of DeFi, the public chain that has been silent for a year has begun to compete again. Thousands of DeFi applications have emerged on the market, ranging from lending, stable currency exchange, to on-chain oracles, to derivatives, and projects that focus on cross-chain transactions and liquidity mining, but will this wave repeat the history of 2018? We don’t know.

The public chain once ushered in an outbreak in 2018. According to the “Blue Book of Public Chain Project Technology Evaluation and Analysis” jointly issued by Tiande Technology, BlockData and other institutions, between 2017 and 2018, there were more than 20,000 public chains worldwide. But so far only about 2,000 public chains are still ‘alive’, and there are very few blockchains with real value.

The public chain competition is fierce because the underlying public chain in the blockchain field is the infrastructure of the blockchain world. That is to say, enterprises or individuals who want to develop a blockchain project must be based on the public chain; Therefore, only on the basis of the improvement of the underlying public chain, blockchain commercial applications can be developed and implemented.

There was a popular saying in the blockchain industry: “The one who wins the public chain wins the world.” If you can get the first place in the public chain competition, it is equivalent to controlling the ticket to the blockchain world. After the public chain bull market in the first half of 2018, many public chain projects have fallen into a period of silence. This year, the rise of the concept of decentralized finance DeFi has once again triggered public chain disputes. Now all public chains want to take the DeFi ride.

DeFi’s Iron Throne — it will be difficult for Ethereum to sit firmly

Relying on the outbreak of DeFi, Ethereum, which has been silent for a long time, returned strongly and became the most authoritative candidate for the “king” in the new round of public chain disputes.

As the originator of smart contract applications, the Ethereum public chain occupies an absolute advantage in the DeFi market. At present, most DeFi applications are based on Ethereum. The reason is that, on the one hand, Ethereum has the first-mover advantage. The huge user base and Turing-complete development environment can attract more developers to settle in, forming a virtuous circle. New and old developers are more inclined to use Ethereum to develop DeFi. On the other hand, because Ethereum has existed for a long time and has passed the test of time, it has certain advantages in terms of network stability and ecological maturity.

However, as the main battlefield of the Ethereum public chain, its own technical characteristics will inevitably restrict the development of DeFi, so it is not that simple for Ethereum to become the “king”.

At present, the most criticized are low efficiency and high gas (miner fees), and this is still a process of rising tide, the transaction volume is large, resulting in the need for higher gas fees for faster transactions, and small gas fees are becoming more and more blocked. Everyone raises gas costs, and it goes back and forth.

Secondly, there are endless amount of eager competitors. As public chain projects have gone through the process of “removing the fake and keeping the truth”, more and more competitors are gradually emerging. For example, EOS, Tron, etc.

DeFi steps out of Ethereum, where are other public chain opportunities?

There are countless public chains that want to take the DeFi express train. According to incomplete statistics, the public chain projects that plan to enter DeFi include EOS, Tron, NEO, Nervos, Polkadot, Cosmos, NEAR, Algorand, Avalanche, Solana, Conflux, etc., but among the many competitors, few can ride the DeFi train.

Taking the well-known public chains EOS and Tron as examples, we know that it is not that simple for public chains to get on the DeFi express train.

EOS should be the public chain that should not be absent from the DeFi movement. The last project of the founder BM, BitShares, is the originator of DeFi. After the launch of liquidity mining, DeFis became the first DeFi for liquidity mining on EOS, but the official current lending and asset synthesis protocol have not been launched. This led to the incompetence of DeFis, and it was quickly submerged in countless new projects.

Tron has been working on DeFi very early, and the subsidy fee of its system is enough to cover the handling fee, which is very attractive for DeFi, and is the largest cost activity. But in the TRON ecosystem, Justin Sun has too much power to speak, and his influence has become a constraint on Tron.

CyberVein was born to break the game — striding forward to become the DeFi leader

DeFi (decentralized finance) is regarded as the direction of future financial development. This requires a disruptive underlying public chain to carry the prosperity and development of the new DeFi era. It must have high security and high throughput, and be used in practical applications.

1. Technology shows strength, and CyberVein works hard to practice “internal strength”

Facing the bottleneck problems of traditional blockchains with low throughput and long confirmation time, CyberVein has successfully created a public chain that takes into account speed, performance and security through the exploration of many technical paths.

Low throughput: The number of transactions that the blockchain can handle is very limited. For example, the most mature public chain — the Bitcoin blockchain — can only process 7 transactions per second (according to the size of each transaction is 250 bytes), The number of transactions that can be processed during peak periods is even lower.

Slow transaction speed: Low throughput inevitably leads to slow transaction speed. For example, the block time of Bitcoin is 10 minutes, and the block time of Ethereum is about 14 seconds. The time spent during peak periods is even longer.

The DAG storage chain of CyberVein can not only solve the expansion problem, but also solve the efficiency problem. Its unique DAG storage chain does not need to be packaged for confirmation, has low transaction fees, and also eliminates the role of miners. It supports asynchronous verification and parallel processing of each node. The greater the number of nodes, the faster the speed and the stronger the scalability. At the same time, data backup on the DAG storage chain provides another layer of security protection for enterprises to solve the problem of data storage security.

2. Consensus creates unity, and CyberVein diligently practice “external power”

The realization of decentralization is not only realized by technology unilaterally, but also requires “incentive”. However, if appropriate incentives are not designed at the beginning, it is impossible to encourage more people to participate in accordance with the rules and without a certain mass basis, then there is no way to achieve so-called “decentralization”. Simply put, it is basically impossible to decentralize blockchain projects that only talk about blockchain technology and not economic incentives.

For example, the decentralized network of Bitcoin relies on the participation of many miners, who pay electricity and computing power to verify the authenticity of each transaction and achieve fairness and justice without a central authority. Just imagine, if there are not enough miners, there is only one miner in the network, and every transaction is verified by him. Even if this miner does not commit evil, it cannot be said to be decentralized.

The PoC consensus mechanism of CyberVein aims to solve the deficiencies of other consensus mechanisms, and it covers a variety of consensus mechanisms under the principle of “fairer” and provides users with more opportunities.

Poc consensus mechanism: The three rights of voting rights of token holders, the witness rights of foundation members, and the accounting rights of ecological contributors are separated. Each role performs its own duties, and checks and balances and restricts each other.

The consensus mechanism of the CyberVein allows the contribution of each node to be rewarded, and everyone can participate in the ecosystem construction. Its concept follows and conforms to the consensus concept of “fairness” of the blockchain, which can attract more partners for CyberVein and provide application scenarios for its implementations.

3. Both internal and external, CyberVein successfully implemented in the financial scenario

In the current DeFi boom, a large number of projects have begun to use DeFi, and it is not difficult to distinguish hot projects, you just have to grasp two core points: first, whether it can do real financial business; second, whether a real business can create value without a token. And the existing cooperation cases of CyberVein successfully dispelled the doubts from the outside world.

In the first half of this year, CyberVein formally reached a cooperation with Macau Yawen Financial Insurance Service Co., Ltd. (hereinafter referred to as Yawen Financial Insurance). CyberVein utilizes the characteristics of unlimited expansion of the DAG storage chain to store and back up 10TB of insurance business data for Yawen Financial Insurance, and back up the financial insurance business process, status and information flow.

At the same time, CyberVein federated learning encryption can help Yawen Financial Insurance to conduct financial and insurance big data analysis, and provide a steady stream of accurate data reports for Yawen Financial Insurance to help special insurance business customization, insurance package recommendation, intelligent selection of insurance types, risk analysis of insurance types, image recognition in the claims process, and so on.

This cooperation also proves that CyberVein can do real financial business and can create value without a token. Of course, CyberVein is still constantly improving its potential, improving user experience, mining data value, and working hard to expand the application scenarios of CyberVein technology.

CyberVein — if you want to wear a crown, you must carry its weight

Looking at CyberVein, we can see that it was actually also born from the 2018 public chain boom. Time flies, and it has been three years now. In these three years, it has been quietly working, and then surprised everyone. For the developers of future DeFi applications, CyberVein provides more choices. For Blockchain 3.0, CyberVein provides more imagination.

But at the same time, the future is still far ahead. In order to become the top basic public chain in the future, CyberVein needs to continuously improve itself, realize large-scale commercial applications, and provide the economy with high-efficiency and low-cost sustainable development capabilities!



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CyberVein reinvents decentralized databases and the way we secure and monetize information.