Blockchain, as we know it, has continually evolved in ways that are beyond imagination.
Since its emergence in late 2008, the technology has moved from simply acting as a decentralized storage center that facilitates the process of recording transactions between cryptocurrency traders and tracking assets to something as advanced as minting NFTs and running liquidity protocols.
Over the years, blockchain technology has transcended from running on algorithms, such as PoW to PoS to DPos, and even to PoSA. Likewise, the technology has evolved from CeFi to DeFi and to CeDeFi. However, TeDefi, another communication protocol has emerged with the intention of improving the interaction between users and smart contacts. What does TeDefi entail and how is it different from other blockchain consensus mechanisms?
What is TeDefi?
Before we delve into the details of what his emerging blockchain consensus system is all about, let’s look at other blockchain ecosystems and consensus mechanisms that run the blockchain network.
Centralized Finance (CeFi)
Before the advent of the democratic DeFi, CeFi was the boss. Then, the only reliable method to buy and sell digital assets was through centralized exchanges, also known as CEXs. CEXs were considered dictators of some sort because they only allow users to trade cryptos based on their order books. Less popular coins or tokens were not tradable. Though they are somewhat stable and fairly straightforward to use, they can be easily hacked.
In addition to that, they can develop software or node issues that can potentially shut down the exchange for a couple of hours. This means any intending transaction won’t be executed. There’s also a lack of transparency and absolute control over funds, as users cede power to the exchange. These are the issues peculiar to CEXs.
Decentralized Finance (DeFi)
Like earlier stated, decentralized finance is more democratic than being authoritarian. DeFi comprises apps that run in a decentralized blockchain. DeFi is not centralized, so users have absolute control over their funds. It removes the need for users to trust a third party or intermediaries to manage their assets. Uniswap, PanCakeSwap, SushiSwap are examples of decentralized applications. DeFi and DEXs allow borrowing and lending and liquidity providers receive incentives as rewards for adding liquidity to the pool.
With DeFi apps, tradability is enhanced. It allows the creation of tradable tokens that represent a portion of an investment, let’s say real estate or stocks. They are highly transparent in their dealings, as data is publicly available. Users can easily track transactions, calculate the amount in the liquidity pool, etc. However, DeFi apps are prone to cyberattacks. Looking through history, users will find out a number of smart contracts that were hacked, with cryptocurrency worth millions of dollars stolen.
PoW Smart Contracts
Ethereum was the first blockchain to launch 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 poor scalability.
PoS Consensus Mechanism
The Proof-of-Stake was described as a better alternative to the PoW algorithm because it consumed less energy and transaction fees were low. This later evolved to DPoS or Delegated Proof of Stake where investors stake coins to a list of elected delegates that mines new blocks on the network. However, scalability was still the issue with these mechanisms.
Is TeDefi a game-changer?
To solve scalability, high energy consumption, high fees, and other bottlenecks prevalent in other consensus mechanisms, TeDefi emerged. TeDefi is an innovative, cross-chain compatible Proof of Stake authority consensus mechanism that provides an infrastructure for scalable Telegram Bot DApps. TeDefi enables validator nodes to interact directly with Telegram Exchange Bot through the MTProto protocol, eliminating the gateway issue on DEXs.
TeDefi focuses on creating an easy-to-use blockchain ecosystem that facilitates the trading and investment of cryptocurrencies and access to decentralized applications in their Telegram Bots. The blockchain network empowers developers to create Telegram Bots on top of TeDefi without the bottlenecks that are prevalent in other ecosystems.
In summary, the benefits of TeDefi are;
- Low gas fees
- Direct communication with the Bot
- Validator nodes reward
- Seamless trading and investment of digital assets.
TeDefi is fast, scalable, and a project that has come to stay.
Join TeDefi Telegram Exchange.
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