Why is GSG deeply optimized for DeFi so popular?
To say that the hottest sector of the blockchain industry in 2020 , DeFi will do its part. According to the latest Etherscan data section DeFi Leaderboard , the current total value of DeFi locked assets has exceeded 8.7 billion U.S. dollars, which is equivalent to doubling the data a month ago (that is , July 2020 ).
Why is DeFi so much sought after?
· Anticipated judgments on decentralized finance. People have been living in the scene of centralized finance (CeFi) for a long time . Every time a CeFi is completed , it means that a centralized institution will conduct a complete back-adjustment on you. After the back-adjustment is completed, it is still unknown whether it can be approved. So DeFi in the encryption industry appeared. It broke the original centralization shackles. As long as you have digital assets, you can participate in DeFi .
· FOMO emotional impact. FOMO , that is, Fear of missing out , phobia of missing out , also known as fear of missing out . As the DeFi market has gradually become hotter , many DeFi assets have continued to rise. For example, AAVE , compound , and yearn.finance in Figure 1 of this article have risen tens of times to a hundred times. Many crypto players who have been affected by FOMO sentiment have entered the game, constantly pushing up prices.
· DeFi ‘s liquidity mining is currently the most significant sector in the cryptocurrency circle. Compared with some currencies that have been online for a long time, such as BTC , ETH, etc., due to technical bottlenecks and capital bottlenecks, it is difficult to have a large price increase in the short term, and more are leveraged funds to fight in the field. The DeFi liquidity mining is different, relatively speaking, was adopted to provide liquidity mining token approach is a more secure profitable strategy, capital never sleeps, always hot money to flow to wherever higher returns.
The current dilemma of DeFi
Current DeFi though developing rapidly, but the appearance is still a lot of difficulties and challenges.
The first is limited transaction efficiency. More than 70% of the current DeFi products run on the ETH network, and the transaction efficiency of ETH is about 14 tps on average , which means that only 14 transactions can be traded per second . This is far from matching the needs of DeFi decentralization scenarios.
Secondly, the transaction fee rate is too high. The same is with the ETH charging mechanisms concerning, ETH ‘s Gas costs will be rising in tandem with the upgrading of trading volume, and subject to the ETH transaction efficiency, cost often need to hand in a lot of money before they can complete the transaction quickly. The latest data from Etherscan shows that the current average gas fee is 241Gwei , which means that a transaction may cost 0.015 ETH , which is about 6 US dollars based on the current ETH price . Such an expensive handling fee seriously hinders the progress of DeFi .
What can GSG (Gauss Ecology) bring?
According to the GSG official website and white paper, GSG is a new generation of blockchain cross-chain public chain project initiated by the Genesis Lab jointly established by Russian and South Korean technical geeks . It uses a unique three-layer cross-chain network processing to handle massive cross-chain interactions. data. GSG organically combines many consensus mechanisms (PoW+DPoS+GPoS) , and develops a unique GSG algorithm : Galgo . GSG traditional block chain industry development bottlenecks and shortcomings of the block chain technology industry oracle (the Oracle) , data privacy protection, DeFi scenario data processing efficiency of a lot of optimization. GSG is currently testing network testing, testing, network testing TPS data of up to 10,000 , far more than the current mainstream currency processing efficiency, and GSG ‘s X86 virtual machine can be perfectly compatible Ethernet Square (ETH) ecology, it is expected to be within a quarter (2020 Nian Q4) The main net is officially launched.
It is an eternal truth that the wave behind and the wave ahead . How much improvement GSG can bring to DeFi and even the blockchain , let us wait and see.
*The market is risky, this article is not an investment recommendation