ZENCHAIN PROTOCOL: Review and Overview

The journey of cryptocurrency started in 2008, when the world experienced global economic recession and in a bid to overcome this, a pseudonymous Satoshi Nakamato developed a digital currency which he named Bitcoin. Satoshi referred to Bitcoin as a peer to peer electronic cash system and further explained that Bitcoin is a decentralized digital currency which implies that coins or tokens can be transferred from one person to another on the blockchain without the need of intermediaries.

A blockchain is a method of storing data in a way that makes it difficult or impossible to hack, alter or cheat the system. The name is derived from its structure in which individual records, referred to as blocks are linked or connected together in a single list, called a chain. Blockchain is a distributed ledger technology (DLT) that enables data to be stored on thousands of server all around the world.

In 2019, Bitcoin the first cryptocurrency was valued for the very first time when someone swapped some of his Bitcoin (10,000) in exchange for two pizzas and since then value has been placed on Bitcoin. In 2011, there came the advent of other coins being referred to as altcoins and of all the altcoins existing today Ethereum is the most popular and also has the highest market capitalization after Bitcoin.

Following a meet up in 2018, by a group of of companies the idea of Decentralized Finance (DeFi) was birthed which till this moment is shaking the core of financial sector. It is true that Bitcoin made transactions possible without banks but DeFi has made businesses possible without banks.

Decentralized Finance means a finance that uses smart contracts on blockchains, to offer financial instruments. For a system to be considered as a decentralized finance system, it must create decentralized financial instruments which are entirely different from the traditional centralized institutions.

DeFi breakthrough in the crypto world has created services that the traditional finance has not ever provided and this has drawn the attention of regulators, investors and even banks to blockchain technology. It will not be wrong to say that DeFi came to replace existing financial services.

Characteristics of DeFi

Non-custodial : DeFi applications allow users to have control over their assets and data. Transfer of value can be done from one person to another without the need of intermediary. Users have the total control of their wallets and keys.

Open: The networks are not geographically limited which makes it accessible to everyone across the globe. It can be likened to the internet just that it deals with assets.

Transparent: Users can track where their assets is because the code that powers these financial apps is visible for anyone to see and inspect so anyone can verify how the apps and protocols work.

Composable: This feature of DeFi brings about innovation because it allows developers to build on top of other applications and already built applications can be modified or improved.

Despite the potentials of DeFi, there are some challenges that comes with it which includes:

- Uncertainty in terms of the blockchain hosting the DeFi project: The blockchain hosting the DeFi project is a very important indicator if a DeFi project will be successful. The obvious truth is that 90% of the current DeFi projects makes use of the Ethereum blockchain and due to the upgrade ethereum blockchain is currently undergoing, DeFi projects are prone to risks.

- Scalability: This issue is also a function of the host blockchain in relation with the time taken for a transaction to be confirmed and the high cost of transactions.

- Smart Contract Problems: This is a big challenge for a lot of DeFi projects. A little mistake in the code of smart contracts can lead to loss of funds.

Introducing ZenChain Protocol

Zenchaim is a blockchain protocol characterized with optimized speed, fee and security that is specifically designed for Non Fungible Tokens (NFTs) and Decentralized Finance (DeFi). It is a blockchain that specialized in addressing the issues facing DeFi and with it's unique design has been created to overcome the inefficiencies of the blockchain we know.

Features of Zenchain

Scalable, high- throughout Blockchain: Zenchain makes use of the proof of stake blockchain which is built using the COSMOS SDK that runs on top of the Tendermint core consensus engine and is fully compatible and interoperable with ethereum. Zenchain chose COSMOS because they have a lot of chain in the ecosystem and also support Interblockchain Communication (IBC) which makes it easy to connect with a lot of blockchain. For this reason, developers can benefit all the features of Ethereum and at the same time benefit from Tendermint's Proof of Stake implementation.

Decentralized pricing oracles built in: Zenchain has built an oracle that can import off-chain data in the blockchain virtual machine so that it is readable by smart contracts real world data.

DeFi Primitives: Zenchain blockchain also has DeFi applications such as Decentralized exchanges, Stablecoin, Lending, Insurance and Token IDO pool.

These are the DeFi applications that is making financial services easier and much more better than what traditional finance offers. From decentralized exchanges that requires no intermediary to staking, yield farming and lending where you earn more profits. I must confess that DeFi services is very interesting and sweet.

Non -Fungible Token Applications : NFTs is also a relatively new concept in the world of crypto. This concept of NFT is to allow the digital representation of physical assets on the blockchain. It allows artists, game producers and influencers to make their NFTs with blade speed.

Using NFTs as collateral in DeFi: NFTs owners can stake their NFTs ND use as a collateral for DeFi applications like lending and borrowing.

Zenchain Token

ZEN is the token of the Zenchain blockchain. It is built on the binance smart chain blockchain and has a total supply of 100,000,000. ZEN will power all the activities of the Zenchain ecosystem.

ZEN Token IDO

Zenchain has been able to reach a soft cap of $210,000 through a dual IDO conducted on Yellow Road and Polka bridge. Those who bought tokens will be able to withdraw their tokens on the 24th of May 2021 and we look forward to an exchange listing on that same day.

Use cases of Zenchain Token

? Protocol Governance

The ZEN token holders will be able to vote on future ZenChain developments such as futures protocol, Exchange settings, and protocol improvements.

? Collateral Backing for Derivatives

Loans may be taken out using ZEN tokens as collateral. Stablecoin will no longer be used as a margin or collateral in marketplaces. Users can also stake Zen tokens to receive passive benefits.

? Exchange Fee Value Capture

In order to boost the value of the ZEN token, the ZenChain Exchange will hold an on-chain buyback and burn event.

? Exchange Participation Incentives

A predetermined number of ZEN tokens will be paid to participants that participate in Liquidity mining on the platform, based on the quantity of Liquidity they supply.

? Mint, Auction, Rent NFTs

The ZEN token will be required to access the NFTs marketplace on ZenChain. This simply implies that ZENtoken is required to mint, rent, and acquire access to the NFTs marketplace.

Conclusion

Looking at how the blockchain technology and cryptocurrency has evolved over the years, you will agree with me that there has been a rapid improvement in the financial services offered by the blockchain technology. Zenchain is a new dimension of blockchain that addresses DeFi challenges and focuses majorly on Non Fungible tokens ensuring that no one is left behind in the world of cryptocurrency.

Therefore, if you're a validator, delegator, valuer, an investor, crypto lover, game producer, artist or you look forward to owning a business, Zenchain protocol will offer you the best financial services via its uniquely designed blockchain

For additional information on Zenchain protocol, you can visit these following sites:

Website - https://www.zenchain.co/

Telegram - https://t.me/zenchaingroup

Twitter - https://twitter.com/zenchainco

Facebook - https://www.facebook.com/Zenchainofficial

Medium - https://medium.com/zenchain-protocol

Author's information

BTT Username: Peace23

POA: https://bitcointalk.org/index.php?topic=5336756.msg57043343#msg57043343