In the future, DeFi will enable everyone to use these financial services through smartphones and the Internet through cryptocurrency, blockchain technology and smart contracts. DeFi will bring revolutionary financial technology and market changes. DeFi, as the first track of the Web breaking out in 3, has attracted the attention and welcome of mainstream users, and has developed into one of the largest industries in the cryptocurrency field. The following content will answer for you.
1、 What is the "DeFi native chain"?
The term "DeFi native chain" was seen by the market when Berachain and Sei first appeared. Sei defined itself as the first real DeFi special chain, and Berachain then put forward the solution DeFi innovation consensus born of liquidity.
DeFi can provide all financial services (savings, loans, investment, insurance, etc.) and replace global centralized financial products. In the future, DeFi will enable everyone to use these financial services through smartphones and the Internet through cryptocurrency, blockchain technology and smart contracts. DeFi will bring revolutionary financial technology and market changes.
The development of DeFi in Web3 is not only the competition of public chain giant Ethereum, but also various expansion schemes to improve throughput and performance. The pioneer development team proposed the design and expectation of the DeFi native chain. Sei and Berachain, as the newcomers to Layer1 blockchain that will receive attention in 2022, let us see the purpose and vision of the birth of DeFi native chain. Let's start from understanding and analyzing the technology and ecology of these two blockchains, and understand why they can be called "DeFi native chain", so as to understand the reason for the existence and development potential of DeFi native chain.
2、 Who are Berachain and Sei?
Berachain will be a scalable, equivalent EVM smart contract and cross chain interoperability platform. Berachain's current implementation is based on Cosmos SDK, which uses its original consensus mechanism, Tendermint. The new liquidity of Tendermint and Berachain proves that the combination of anti witch attack mechanism Berachain can provide fast transaction speed, low transaction cost and deterministic termination, and create a new interoperability layer between the consensus engine and virtual machine. The most important thing that this layer is responsible for maintaining the "consensus mortgage" is that compared with the traditional equity certification blockchain, the original stable currency of the chain has improved the efficiency of pledged capital.
In addition, Sei has also enabled IBC and integrated the wasmd module to support CosmWasm (CW) smart contracts that support cross chain and multi chain interoperability. From the bottom of the technology layer, Sei supports the order book mode by optimizing the design of the chain to improve the overall throughput and latency. Sei optimizes speed, stability and cost-effectiveness.
3、 Underfloor design and technical advantages
Sei adopts Twin Turbo consensus (intelligent block propagation+optimistic block processing). The built-in order matching engine promotes the order book DEX on Sei while breaking the scalability of Tendermint. It can provide a transaction speed of 600 milliseconds, because it has DeFi specific parallelization to support a significant increase in throughput and order processing. That is to say, as a DeFi native chain, it has the following obvious advantages in transactions: the original order book matching mechanism improves scalability; At the same time, the built-in original price predictor can provide high-quality and reliable data feed and preemption prevention through batch order summary, which can avoid MEV problems; Each order of Sei can be gathered at the end of the block, and all market orders can be executed at the same price to help prevent the first transaction.
Under the current incentive mechanism and economic model, Berachain has innovated the consensus of liquidity proof, better handled the incentive mechanism among investors, builders and users interacting with the network, and is a high-performance, scalable and equivalent EVM smart contract and cross chain interoperability platform.
4、 Ecology and development
Sei incentive test network has been launched in July 2022, and has raised 5 million dollars. According to the official disclosure, more than 70 teams have established more than 100 application Sei for release. According to the officially disclosed data, the orders per second reached 22000, the total trading volume of the test network was 4.5 million+, and the users of the test network were 250K+. BeraChain is slower than Sei. The full version of the white paper has not yet been released. At present, there is only a previously released white paper BitBearsbyBerachain NFT project. According to the official disclosure, an internal development network is currently running and testing. It is expected that an incentive testing network will be established and prepared soon, and more content will be shared with the community.
5、 Why the DeFi native chain is needed
The DeFi native chain unlocks a new design space between the universal chain and the application chain - it is neither universal nor specific to applications, but specific to a certain industry. For example, the goal of Sei is to create a DEX application customization environment. Berachain hopes to solve the problems such as insufficient DeFi liquidity and industry sustainability through the liquidity verification mechanism.
Explore the space between application chain and general chain Layer multidimensional design space. Sei and Berachain let's see the possibility of DeFi native chain. There is no doubt that DeFi native chain will have advantages in the following aspects.
Specialized infrastructure needs to be specialized. DeFi Bunsen Chain can build the best infrastructure for decentralized finance. Basically, the blockchain is a distributed database. In fact, according to the developer report of Electric Capital in 2021, the resources injected into Web3 are growing rapidly. An interesting data in the report is that the value of more than $100 billion of smart contracts comes from less than 1000 full-time developers. The shortcomings of Ethereum's underlying structure have officially emerged, and new public chains are being explored in their respective directions.
DeFi is specialized in solving existing problems such as transaction speed and transaction cost in terms of consensus and technology for the native chain DeFi in this field. As stated by the liquidity advantage, Sei can help developers easily use other Sei order matching engines to share Dapp's liquidity. DeFi will allow developers who build DeFi applications in the native chain to benefit from it, and the development experience of DeFi applications will be greatly improved.
Developers can enjoy the combined advantages of DeFi native chain as Layer1 blockchain at the same time - all applications are built on a blockchain, so they can easily cooperate with each other; It can also easily have the advantages of specific applications, including customizable and local multi chain interactive operations described above.
To sum up, Ethereum occupies half of the public chain, but we have also seen the rise and innovation of various new public chains. DeFi still has considerable room for growth, and developers also have opportunities and access to space. Perhaps it is just after the general outbreak period that more and more developers and users pour into the industry. After discovering and breaking the existing problems, the track dedicated to specific use cases will be the next innovation peak and value depression. The DeFi native chain is one of the most significant manifestations.