DeFi is the real deal, not Bitcoin 分散式金融才是真正的创新者，而不是比特币
The more interesting trend underway is how blockchain opportunities are starting to materialise for DeFi and Fintech, instead of pure speculation. 正在进行的更有趣的趋势是，分散式金融和金融科技开始逐渐出现区块链机会，而不是纯粹的投机活动。
Since breaking its all time high valuation twice within 3 months, there is a lot of buzz surrounding Bitcoin’s price. While Bitcoin’s valuation may go further in the future, the most exciting part of the blockchain story is Fintech can play a key role in DeFi (decentralising finance).
The last time Bitcoin peaked was in December 2017 amid extreme hype about blockchain’s potential to transform the financial system. Unfortunately, these expectations were ahead of their time. This resulted in a lengthy bear market that saw Bitcoin crash by more than 80 per cent.
Given Bitcoin’s surging price, it appears that another hype cycle is well underway. However, this time around there have been busy development for solutions to help consumers participate in the blockchain revolution. One such example is Plutus Capital.
Plutus Capital is backed by a decentralised financial system built on a public blockchain, where an individual can become a bank and enforce greater control of his own funds. This system relies on tamper-proof nature of ledger as well as smart contract and validation to ensure all processes are safe and secure.
Cross border transactions have high interests and fees to the consumers. The process also takes ages, when it can be instant in the digital world. This is the result of inefficient intermediaries and processes required.
Banks earn by investing the money we keep in our accounts. However, we barely earn anything from the yields of these investments. The financial structure has made banks to be insolvent because there is no incentive to change the way things are.
Consumers need to do away with the assumption that banks are required in the process.
Since banks are a problem, there needs to be a solution that allows for borrowing and lending without any intermediaries. And this solution is possible today.
Plutus Capital provides a solution that brings to you financial services through secured automation using blockchain technology. Plutus Capital’s infrastructure answers the modern needs of users with higher efficiency and lowered fees.
More broadly, institutional investors are waking up to the disruptive potential of blockchain technology. To understand this disruption, one must appreciate a surprising and often overlooked, fact about Bitcoin and other cryptocurrency tokens: they do not exist.
What does exist, however, is a record of information flows between users. Just as your email account holds messages, sent and received, a cryptocurrency balance is the net result of a user’s transactions on a blockchain network.
Moreover, both technologies employ similar security protocols: just as you need a password to send messages from your email account, you need a private key to ‘send’ cryptocurrency tokens on a blockchain.
When someone makes a blockchain transaction, their private key is transformed into a digital signature, which is then used to authenticate transactions. This is like the imprint of a rubber stamp, in that you can see where it came from without looking at the stamp itself. As a result, the digital signature can be shared without revealing the underlying private key, just as we can share email addresses without giving away our passwords.
This allows the network to publish everyone’s transactions without compromising its security. As a result, nobody can falsely claim that they have, or have not, been party to a transaction. However, transparency does not stop there: many blockchain networks make their source code freely available. Can you imagine a bank publishing all of its policies, procedures, and controls?
In addition, blockchain networks are decentralised, which makes them extraordinarily robust. As their transactions are stored in many different locations, they are almost impervious to attack or corruption. Like peer-to-peer file-sharing networks, blockchains are practically impossible to take down.
The inherent robustness and transparency of blockchain systems ensure their integrity, allowing network participants to rely on observable rules — as opposed to financial intermediaries — to manage user interactions. This lack of intermediation reduces transaction costs in the system.
In this way, blockchain technology can help make financial services more efficient.
However, not all blockchain transactions requires native tokens or cryptocurrency into play. There are both public and private blockchains. As these are merely transfers of information, blockchain networks can be used to streamline workflows that involve sign-offs and verification checks.
This was the case when HSBC recently used a blockchain-based app to facilitate a letter of credit for an international petroleum shipment. As part of such transactions, banks guarantee payment to exporters on behalf of importers. Consequently, these involve multiple checks and sign-offs along the way. By using a blockchain, HSBC cut the transaction time by more than 60%.
Although HSBC and Plutus Capital focus on different domains, their blockchain solutions both contain a graphical user interface. This saves users the hassle of having to engage directly with the underlying blockchain networks, which can be difficult.
Furthermore, both solutions rely on the security and openness of blockchain-based authentication mechanisms to reduce admin costs behind the scenes. In this way, blockchain has applications in areas where transparency is commonly an issue, such as re-insurance, auditing, and loan syndication − to name a few.
By reducing paperwork and increasing accountability in a multitude of sub-sectors, blockchain can help make financial services cheaper and more accessible. As part of this, fintech can become conduits between conventional finance and the most promising blockchain networks. This implementation and impact of blockchain technology, is much more important than the price of Bitcoin.
Before you buy or invest in Plutus tokens, please take the time to understand the rewards model, as well as the risks involved. All decisions that you make on the Plutus platform will be your sole responsibility.
About Plutus Capital
Plutus Capital is backed by a FinTech system built on a public blockchain, where an individual can enforce greater control of his own funds. The Plutus blockchain and token rely on the tamper-proof nature of ledger as well as smart contract and validation to ensure all processes are safe and secure.
Governed by yPLT token holders, PlutusSwap is built by the Plutus Capital dev community. Other than earning rewards on PlutusSwap, yPLT token holders have the right to vote on proposals and decide on future development within our ecosystem. PlutusSwap believes that the key to unlocking economic equality, prosperity and financial freedom lies in developing strong Fintech use-cases on cutting-edge DLT. Most importantly, PlutusSwap is neither a chef nor food. PlutusSwap aspires to bank the unbanked, bringing fundamental financial rights to billions of individuals across the globe. We want to unbank the banked, stripping away the financial prison that many in the first world are enslaved to.
We, are the followers of the great god of wealth, Plutus.