Radix has announced the launch of the first layer-one protocol that has been specifically designed for decentralized finance. Then the release of the first layer-one protocol is a significant step into decentralized finance (DeFi).
The new protocol is made of four technologies
The new protocol is made up of four different technologies; The Radix Engine, a purpose-built development environment used to develop DeFi applications, Cerberus, a high-speed network consensus mechanism, and the Developer Royalty System, a first-of-its-kind decentralized incentive program, and the Component Catalog, a library of DeFi building blocks; and the Developer Royalty System.
Several factors are needed for DeFi to go mainstream. These include secure by design systems, low transaction costs, incentives that encourage developers to work on decentralized applications, and scalable and composable applications.
“Ultimately, Mainstream DeFi will happen when all of the barriers holding back DeFi today are removed, without compromising decentralization. It happens when developers are finally given the tools they need to build apps that can surpass the services offered by the traditional financial industry, “the company said.
The company launched the four technologies to prepare DeFi for mass adoption. They have been detailed more in a new DeFi White Paper published recently by Radix.
The traditional financial system is made up of many layers of manual processes and intermediation that cost around $71 billion or 0.05% of the global economy per year. Decentralized finance is able to remove this friction and cost. However, current DeFi applications are built on blockchain protocols that do not meet requirements for mainstream adoption.
According to the company, the Radix Engine has been explicitly designed to create logic for predicting and suggesting correct results in response to requests. Radix has also launched the Cerberus, its consensus algorithm, which uses a new consensus process called braiding.
DeFi has maintained an upward trajectory and recently went above the $6 billion mark. However, many industry players believe that the total locked-in value in DeFi protocols has been overestimated. Leading industry players like Binance CEO Changpeng Zhao believe that DeFi is the future of finance and admits that more needs to be done to bring it into the mainstream.