The infrastructure of blockchain technology has evolved quite rapidly in the past few years. A lot has happened since the inception of the very first cryptocurrency and its blockchain Bitcoin. These advancements happen to enhance the ecosystem and push it one step closer to mass adoption. It is no secret that cryptocurrencies and blockchain tech today are a bit far from mainstream adoption. That’s where TeDeFi Network comes in, bringing simple solutions to complex problems that appeared with many blockchains so far.
Let’s go back to the very basics to explain how different exchanges work, the problems they posed and how the TeDeFi Network solves those challenges.
Centralized Exchanges (CeFi) are RISKY!
When people wanted to buy or sell cryptocurrencies back in the days, the very first form of an exchange known was Centralized Exchanges. Those types are exchanges are known as Centralized Finance, or CeFi for short. Basically, they are companies that build websites using traditional coding languages, host their own servers and operate business as usual. The problem? Well, there are many bad encounters that users faced over the years.
- Security: Anything hosted on private servers is prone to hacking or other malicious attacks. A famous hack happened back in 2014, when a CeFi exchange called Mt.Gox got hacked and filed for bankrupty.
- Legal: Since CeFi comapnies are registered entities, they are subject to local laws. A company might decide for example to stop operating in a specific country without prior notice due to pressure by any state. All the users will forecfully receive a refund, and their positions will close without any notice.
- Privacy: When you sign up with a CeFi exchange, you need to pass extensive KYC measures. This entails uploading personal data, ID, Passport and whatnot.
- Transparency: Companies can decide overnight to change their fee structure, and only inform their users via emails about that sudden change. Users have no control or say whether the decision should be passed or not, rather deal with the consequences. Also, the actual wallets that CeFi hold for their users and discretionary, meaning owned by the company. When you receive cryptos to your wallet, the company has access to the private key as well, and can decide to switch those funds to other wallets any time. You just see a “balance” figure on your “dashboard”.
DeFi came in to Solve CeFi problems
Ethereum was a massive success as it adds the concept of “Smart-Contracts” to its blockchain. This basically turns every mechanical work that an actual “human” does, and automates the entire process. From giving access to checking the crypto wallets, most of the operations that CeFi platforms became automated. This created a new concept, called Decentralized Finance, or DeFi for short. Users now have full control over their blockchain activities, without the need for a third-party, snooping into their activities.
Now that we took care of CeFi problems, new ones started to show in the DeFi space. Slow processes and expensive fees started to hit users, as systems became flooded by transactions. This beats the very purpose of cryptocurrencies, which stood for speed of transactions and cheap fees. Something needs to be done to overcome this scalability issue.
Move over DeFi, TeDeFi is here
The TeDeFi Network aims to solve the problems that showed up with DeFi. This is like a third-generation blockchain system that aims to enhance the entire ecosystem and make it more efficient. It basically identified network congestions and bypassed all unnecessary gateways to buy or sell cryptos.
This is done by providing an infrastructure that enables validator nodes to interact directly with a Telegram Bot through something called “MTProto”. Not only is this way faster, but also more secure. The exchange of data will also be facilitated, as TeDefi allows developers to create Telegram Bots on the protocol. This enhances trading cryptocurrencies and accessing Decentralized Apps. TeDefi brings a faster and more efficient way to deal with Smart-Contracts. It tackles the problems directly and provides easy and simple solutions, without the need to re-invent the wheel.
Now the TEFI token powers the entire ecosystem, and basically serves as a utility token. It allows users to pay gas charges, gives discounts on exchange fees, gives rewards for validator nodes, and gives governance power.
Conclusion – Is TeDeFi worth it?
With all the problems that are happening currently in the DeFi space, there is definitely a big need to find better alternatives. The TeDeFi Network gives good alternatives and solves the big elephants in the room: scalability issues and high fees. With those problems out of the way, there will definitely be an increase in the demand for the TEFI token, and in turn, a higher valuation for the project as a whole in the future. If you are looking to invest in promising projects, the TeDeFi network is definitely worth looking into.
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