BlockbasisBlogDiFiGeneral Q&A

Why did we build Blockbasis using DiFi?

The entire purpose of creating Blockbasis was to get more people to leverage the awesome capabilities of cryptocurrency and blockchain. Unfortunately, the barriers to entry were either way too high, or way to risky!
👎 On on side, you have DeFi – Decentralised Finance – that is cumbersome, technical and feels extremely foreign to use for 99% of the world’s population.
👎 On the other side, you have CeFi – Centralised Finance – that does not meet the promise of blockchain, and hence does reap the benefits of this new technology. One way you see this is how CeFi platforms are consistently failing to protect their user’s deposits or personal data.
👍 This left us with DiFi – Distributed Finance – which to us here in Blockbasis, seemed like the perfect middle ground. DiFi essentially takes the best of the CeFi and DeFi world.

DiFi, in a nutshell, is all about allowing users to control their keys in order to control their funds, but with a twist. The funds they control are IOUs – tokens that represent the underlying assets – with the underlying funds safely distributed across one or multiple custodial wallets. This comes with multiple benefits:

👉 Users benefit from the convenience of others holding and securing their assets
👉 Users hold their private keys
👉 Users can confirm transactions on a blockchain
👉 Users can exchange assets peer-to-peer but with high liquidity
👉 Users can trust that other users are verified and hence legit

So with the mission in mind, where Blockbasis wants to dramatically increase the number of people leveraging the capabilities of blockchain, DiFi seemed to be the setup needed in order to accomplish that mission 🚀