Marcopolo Protocol Will Become the Future Financial Protocol of Defi
DeFi is an abbreviation of the phrase decentralized finance which generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on blockchain networks. In simpler terms, it’s financial software built on the blockchain that can be pieced together like Money Legos.
The original version of Defi was made in 2008 on Ethereum.
EtherDelta: Decentralized ETH/ERC20 token trading platform
WeTrust: Finacial Inclusion based on distributed ledger
Etherisc: Decentralized insurance
More and more Defi product was being made particularly In 2017.
DAI: Decentralized stablecoin, anchoring the US dollar
VariabL: Ethereum blockchain derivatives trading platform
EthLend: Decentralized loan (Lending)
In 2019, MarcoPolo Protocol released a new Defi product — MarcoPay. Users can manage their crypto assets on it easily, to invest different products quickly.
Defi VS Traditional Finance
Centralized VS Decentralized
Traditional finance heavily relies on human-operated institutions. When a thing is mainly determined by a person, which means the entire situation can be manipulated. In other words, it is centralized. Defi heavily relies on smart contracts, it usually uses software that requires minimal trust. The software codes are open-source, people can choose the smart contract that been designed the best.
Traditional finance in some aspects is not design for all users, it has many problems such as differentiated financial services, unnecessary supervision, and review, obsessed with counterparty risk, lack of necessary transparency, etc… Those problems caused expensive fees. The lack of assets, bureaucratic attention, and regulatory review issues due to geographic boundaries prevent us from diversifying their investment portfolios and resulting in missed opportunities. Also, users when using traditional finance need to bear and assume excessive and unnecessary risks and pressure.
Defi solves most of the above problems:
· No permission required: everyone can freely access to all financial services
· No audit required: everyone can use all financial facilities without being bound by relevant regulations
· Customization/Programmable: Every contract is pre-programmed and executed in the same way for everyone
· Transparency: The internal work of the contract is fully visible on the distributed ledger, thus introducing transparency to the system
· Credibility: Due to the above characteristics, the entire system can be trusted by every ordinary person
Sam, Head of MarcoPolo Protocol Community, was interviewed by Internet Industry Research Institute of Tsinghua University, he stated “Since the development of the traditional financial market, there have been many problems such as cumbersome adjustment, auditing, pricing and issuance, and other financing processes. The existence of the blockchain can simplify the above problems through smart contracts to reduce various costs. It is also possible to realize the free flow of equity and assets by putting assets on the chain. Speaking of DeFi, the vision of it is to tokenize assets and trade freely in the global open market, which solves the complex and cumbersome pain points in the traditional financial field.”
He also said “When designing the architecture of the underlying business logic, MarcoPolo has made in-depth considerations for decentralized finance. In the future business ecosystem of MAP, there will be much more real-life scenarios, such as cross-border payment, trade finance, Supply chain, STO, etc. MarcoPay will carry electric cash payment system as the mission and provide better Defi severies, MAP is the future blockchain universal protocol, and Defi is the future financial protocol”
At present, we can still consider we ware in the early stages of decentralized finance, from stablecoins to decentralized exchanges, wallets, payment networks, and insurance platforms; then, to the key infrastructure, the entire Defi ecosystem is booming and a new era is about to come.
MarcoPay will provide more Defi services for users and will continue to expand business cooperation with various fields, focusing on global commercial applications realization, linking global resources, and empowering economic and financial development to build a global business ecosystem.
· MarcoPolo Protocol Medium (For the latest articles)
· MarcoPolo Protocol GitHub (For the complete codes)
For more information, visit marcopolo.link