Blockchain

EasyFi Network Solving Scalability and Low-Latency Issues

Since the advent of blockchain technology, it has been deployed in many aspects of human endeavors like finance, supply chain, etc. However, issues like high cost, low scalability, and low latency have hindered the optimal utilization of this revolutionizing technology. There have been several projects deployed to solve these issues, but all have led to little improvement.

Although some analysts have highlighted solutions like the Bitcoin Lightning Network and Ethereum 2.0, these projects are yet to be launched. Yet, some relatively new projects are beginning to proffer solutions to the problems facing the blockchain infrastructure and the DeFi market. Among these projects is the EasyFi Network.

The EasyFi Network

The newly rebranded EasyFi is a layer-2 decentralized network designed to provide frictionless borrowing of digital assets and mitigate the setbacks present in existing blockchain systems. Furthermore, it seeks to make the cryptocurrency money market more efficient as well as create high-yield bearing opportunities for investors, traders, arbitrageurs, etc. 

For the decentralized finance market, the EasyFi Network focuses on enabling scalability, composability, and mainstream adoption. Its open network infrastructure also facilitates end-to-end lending and borrowing of crypto assets and other related financial products. Although the network has been designed to be Ethereum compatible, its solutions can be built or operated from virtually any underlying blockchain protocol. 

The cross-chain framework makes it possible for users to execute transactions across different global markets. This includes permissionless public networks and private platforms. It is secured using proof-of-stake, and the governance mechanism is achieved through participating voters reaching consensus. In addition, its Matic-based layer-2 protocol facilitates cheaper and faster transactions, hence making DeFi more accessible.

Major Problems Facing Blockchain/DeFi Systems

  • High cost and low scalability

The existing blockchain infrastructures like Ethereum are a massive ecosystem that is riddled with high gas fees or transaction costs. It is highly impossible for the current DeFi solutions to scale and achieve mainstream adoption with high transaction fees. In addition, the low throughput, latency, and slow block completion time make the system highly difficult to access. Due to these huge challenges with the existing blockchain infrastructures, a better alternative is vital. 

  • High collateralization ratio of DeFi system

Most DeFi users are required to lock as high as 200% of their assets in order to access loans predominantly used for trading. Aside from adding to the cost of accessing loans on the platform, it also impedes market expansion. Although there have been solutions like credit elongation and flash loans, they have not efficiently evolved. For mass adoption of DeFi to occur, both collateralized and uncollateralized lending must be in place. 

  • Unavailability of Smart financial products

Although the traditional financial markets have lots of shortcomings compared to decentralized finance, they are ahead of DeFi when it comes to providing users with arrays of products. Users can subscribe to mutual funds, insurance, securities, etc. Today we have a series of sophisticated financial products in the DeFi market. There is a need to create products with more real-life applications. 

  • No means to determine user’s creditworthiness

In the DeFi market, there is no efficient and effective approach to determine a user’s creditworthiness. Although higher collateral helps to cushion volatility in the market and reduces liquidation, it also attracts inefficiency. Moreover, the lack of credibility benchmark is a hindrance for institutions to lend in a decentralized manner.

EasyFi Network Solutions

  • Application of layer-2 scaling techniques

With this technique, the EasyFi Network can move its transactions off-chain and then compile them into proofs that are submitted back to the main chain. This process provides better speed, high scalability, and low cost of transactions on the network. In addition, the network is customizable, hence offering the needed flexibility to work with multiple blockchain infrastructures. 

  • TrustScore protocol to determine user creditworthiness

Here, users are expected to whitelist their ERC-20 addresses, as many addresses as the user wants. Then, the TrustScore scan algorithm will go through these addresses and compile all necessary financial information of each user. With this system, EasyFi intends to solve the problem of over-collateralization in the DeFi market. 

  • Provision of smart products

The network can be leveraged to create smart products such as microlending, where borrowers can access time-bound loans. These loans will be of small value and will have much lesser interest rates than traditional banks. Moreover, users can take out these loans directly to their wallets, which can be used for different purposes. This will help small and medium businesses as it helps them meet their daily working capital requirements.

Future of the EasyFi Network

Diversifying products and services is key to upkeep the values of the platform. EasyFi will make crypto lending as seamless as possible by integrating with many blockchain networks. Interoperability will allow 24/7 liquidity across the ecosystem creating an inclusive network for all assets.

Angela Scott-Briggs

Editor, TechBullion.com | Interested in Innovations in Business, Finance, and Technology .

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Angela Scott-Briggs

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