POFID and Privacy Protection, a Necessity in the DeFi Industry

In the past week, the currency market plummeted. ETH experienced a record high of US$2,553 and fell back to almost US$1,900 in one day; BTC went from approaching US$65,000 to US$52,000 at the moment. Panic sentiment, like a butterfly effect, will sweep the whole market by a large margin. On April 18, the entire network broke out of 6.6 billion U.S. dollars. It can be said that this is a reshuffle of the qualifications of retail leeks. Although the pleasure of trading with high returns is unparalleled, should retail investors think about whether I made money? Whether others help me to create more value.

Invest in DeFi, why POFID?

Many professional organizations in the DeFi field have used Token Economy and decentralized asset management models to compete with traditional centralized asset management in the market. POFID is such a decentralized asset protection platform, but it also has rich experience from the conventional financial industry. The founders and some of its members are from top Korean investment companies. POFID provides an oracle interface for evaluating the value of tangible assets behind digital assets, which can reliably obtain real-time asset value fluctuations, thereby providing data support for the risk control engine behind it; through the realization of autonomous trust asset management on the Functional chain role, providing custody and investment channels for digital assets. He is transparent and trustworthy to the user, but he uses an anonymous and privacy-protected way to show himself to the outside world.

Privacy issues are a necessity for DeFi.

POFID has a complete and phased Layer 2 based, and finally a borderless Layer 1 network for better-decentralized governance. The repeater method implemented by Layer 2 has now been deployed across the chain on ETH and BSC. Some people compare Layer 1 to the Didi car in the DeFi world, meaning that vehicles in the DeFi city cost money, but the money is the same no matter where you go, and it has nothing to do with the principal ratio. For example, if I want to buy a financial product in this DeFi city, I have to pay the high Didi special car fee if I believe five million or fifty yuan. This money refers to the high Gas Fee of ETH.

The difference between Layer 2 is that it is the subway in DeFi cities. It can reduce the Gas Fee by transmitting a more significant number of transactions on the same carriage at one time. This is equivalent to directly reducing transaction costs by tens or even hundreds of times. But the question is, is there a risk of privacy leaks? No user wants to expose their assets to the public network. However, the existing blockchain-based system stablecoins (including DAI on Ethereum) do not have such a privacy protection mechanism and their only privacy. It only relies on the asymmetry between the blockchain account and the identity information of natural persons to protect asset privacy, that is, if the report does not actively query. But in fact, it is possible to trace the natural person behind the associated undisclosed account information through the asset circulation chain and according to the account whose identity information has been exposed.

How does POFID protect privacy in DeFi?

POFID’s OCA underlying public chain technology is based on the privacy protection of zero-knowledge proof, supports Turing’s complete smart contract, and uses technology to practice privacy protection. It’s like putting on a mask for everyone who gets on the subway. At the same time, each real asset is mapped to a quantifiable digital asset on the chain, supports both homogenized assets and heterogeneous assets, and can also use such assets as guarantees to generate other financial attributes with various properties digital assets. The transaction or payment information sent between the account and the account cannot be publicly queried. Only the private key or query key of both parties can know the content of the transaction. Besides, in terms of smart contracts’ input and output privacy, smart contracts, including PSC (currency management contracts), can selectively process the input and output assets or other conditional data for privacy protection.

Conclusion

Most people cannot beat Bitcoin and may even fail to beat inflation. As far as institutions are concerned, the market is already their zero-sum game, and it is difficult for individual retail investors to contend with it with a small number of funds on hand. With the increasing inflow of funds, the income of simply holding mainstream currencies has begun to diminish. From a trend point of view, investing in DeFi projects is a good asset appreciation strategy, and investing in a Layer 2 DeFi solution with privacy protection features, POFID, maybe the best choice for participating in the volatile currency market.

POFID DAO is a technology and governance framework based on Blockchain technology for the issuance and management of stable cryptographic and stable currencies.