The Opportunities and Challenges of POFID Since the Completion of Cross-chain Deployment
As the number and scale of blockchain networks increase, they are largely isolated. Like various islands with independent economic cycles, they cannot exchange information or value with the outside world. The isolated state of the current blockchain network runs counter to decentralization, reflecting the division of the existing centralized network world. In this case, cross-chain is undoubtedly a necessity. With the blessing of cross-chain solutions at all levels, various assets between public chains can be seamlessly converted, and encrypted digital currency can meet actual needs.
POFID is such a platform dedicated to decentralized asset protection, realizing the practical value of DeFi through privacy protection and cross-chain. This week, POFID has completed the BSC-based cross-chain deployment. While successfully filling in the current privacy protection gap in the DeFi field, POFID has also connected the heading public chain. This article will talk about the opportunities and challenges of POFID after the cross-chain deployment is completed.
Why cross-chain?
Compared to this status quo, DeFi insists on the principle of decentralization. Until the gas fee of ETH has reached a point that normal users cannot afford, more possibilities are being explored, such as alternatives such as BSC and TRON Chain. But the problem also arises: the liquidity of assets should not be restricted, and its boundaries should not be divided or regulated. This is the essence and principle of blockchain technology.
Ever since cross-chain has almost become a standard configuration of DeFi products, current solutions include the underlying public chain facilities represented by Polkadot and Cosmos and the Layer 2 solution based on atomic swap and TEE trusted execution environment.
POFID DAO has implemented the first phase of the cross-chain plan: POFID’s ETH and BSC cross-chain has been completed. Taking BSC as an example, POFID users can enjoy anonymously protected free transactions through the decentralized exchange on BSC. Users can also use privacy-protected POFID tokens and pledge mining on the platform. POFID gains the opportunity of exposure on the mainstream public chain and enriches the ecology of BSC. After implementing the cross-chain plan, POFID DAO is infinitely close to the world’s first DeFi project that is compatible with mainstream digital assets and high TPS. The initial completion of the plan has had an enormous impact on the entire industry and promoted the DeFi market to new prosperity.
Why privacy protection?
Anonymous transactions have always existed. Paper currency is unknown. In the era of electronic money, everything becomes traceable. Therefore, as an upgrade, cryptocurrency naturally hides the trader’s identity (only the remaining address). But with the development of big data, people can still monitor the transactions between the address and the actual owner in various ways.
The needs of anonymous transactions that we can already see include: when individuals and groups buy or sell tokens under closed agreements, pay bonuses to team members, or invest in celebrities, the necessary anonymity is reasonable.
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. 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.
Opportunities and Challenges of POFID
For the DeFi field and even the entire blockchain industry, privacy protection is an issue that has to be considered. Decentralized transparency does not mean the user’s information exposure in the real world. If most transactions can be traced, it will undoubtedly bring much inconvenience to our actual lives. If DeFi or cryptocurrency needs to be promoted globally, privacy is certainly an indispensable service option. However, implementing the privacy protection of each transaction between individuals without violating the decentralized spirit of the essence of the blockchain is the most critical problem that POFID should solve at this stage. POFID has made outstanding achievements in the DeFi Red Sea, but the DeFi Blue Sea based on privacy protection is the actual track of POFID.
