NGK introduces the interconnected era of DeFi and CeFi
Decentralized Finance (i.e. DeFi) is an innovative field. However, the DeFi’s infrastructure is not completely sound although it has been developed for several years. It is still a stock market that requires a large pool from the traditional financial market.
Therefore, looking at long-term value, the next stage of DeFi’s breakthrough lies in the future symbiosis and integration of the DeFi and Centralized Finance (i.e. CeFi), creating huge room for imagination.
Among them, a dark horse appeared, namely the NGK. It connects the DeFi and CeFi to realize the rapid development of interconnected economic ecology.
During the process of breakthrough, DeFi will inevitably have certain differences with CeFi. In many cases, it is essentially a contradiction between centralization and decentralization. The NGK must solve the main pain points of DeFi and CeFi. The NGK is building a decentralized financial ecosystem step by step, diverting the digital financial flows, and reconstructing the traditional financial models.
Building finance scenario with the building block method
The architecture of NGK financial scenario is a modular deployment technology that provides rapid development and deployment for the DeFi applications to meet the needs of financial scenarios such as trading, custody, lending, pledge, insurance, and derivatives.
Various financial scenarios in NGK are like building blocks, which can be spliced according to various needs to form a complete product quickly and efficiently.
The DeFi scenarios have 5 layers: settlement, asset, protocol, application and aggregation layer.
Composed of a set of DeFi asset protocols, it allows the network to securely store the ownership information and ensure that any state changes is complied with the network’s rule.
The storage token protocol, protocol assets, and other tokens are based on the token standards supported by the blockchain.
It provides specific uses such as decentralized exchange standards, debt markets, derivatives, and asset management on the chain. These standards are usually implemented as a set of smart contracts that can be accessed by any user (or DeFi application), and existed in a protocol, which is conducive to the function of interoperability.
Create an agreement to connect to the user applications. The interaction of smart contracts is usually intuitive and friendly access in the front-end browser.
The aggregation layer is an extension of the application layer. The aggregator connects to multiple applications and protocols, forming a user-centric platform.
With the help of the DeFi scenarios, the team can concentrate on the research and development of cross-chain platforms, as well as the DeFi blockchain services. Similar to most web applications, it does not require the re-implementation of its HTTP protocol. For example, when a DeFi team creates a new chain, it does not need to implement network and consensus code step by step from the beginning, only needs to use a building block method.
The DPOSS mechanism behind the scalable consensus
In order to handle complex financial application scenarios and respond to the second-level transactions in a timely manner, the NGK adopts a scalable consensus technology, integrating the DPOSS consensus mechanism of Delegated Proof of Stake (DPOS) and Proof of Authority (POA) mechanisms.
Based on the security analysis chain, the NGK can tolerate up to 50% of the shares being maliciously controlled. Since each token can be marked, the fault tolerance is further extended to 50% of all tokens in the network. If a attacker controls more than 50% of the shares, they can grow their malicious chain faster than other attackers and perform double attacks, which is similar to the 51% attack in the POW blockchain.
Governance under the open network
The expansion of DeFi is inevitable. The Ethereum officially upgraded on December 1, but the ecological scale of Ethereum with tens of billions of dollars is both an advantage and a burden. Thus, the Ethereum has many considerations, and it is slow in every step it takes.
Suffering from Ethereum’s high gas fee, network congestion, liquidity shortage, oracle price failure, as well as problems such as insufficient user experience, the Ethereum’s DEX and DeFi user experience have been criticized.
However, the NGK’s governance method provides an effective way of diversion, which can be better applied to many diversion projects from Ethereum to other public DeFi projects.
Specifically, the project adopted the Ethereum mining method in the early stage, quickly focused on the market consensus from the Ethereum, started the DEX and DeFi financial products, and solved the main pain points of insufficient DeFi traffic in the early blockchain.
Share DeFi mechanism, continue and expand the existing ecology.
The NGK first connects the financial infrastructures on the Ethereum to the NGK ecology, breaks the ecological barriers, and realizes the breakthroughs. Then, at the level of open finance, it builds a variety of applications for the C-end and B-end users. For example, it allows any user to issue his or her own digital assets on it and create own digital asset trading pairs. Thus, the financial institutions and traditional entrepreneurs are allowed to use the NGK smart chain for online decentralized lending agreement protection, and return the ownership of data to users.
At present, the NGK has started the first stage of liquidity mining. Compared with other DeFi projects on the market, it has good return rate, the return on investment is as high as 1000 times.
When will the star rating project that connects Defi and CeFi represented by NGK break through? What changes will it bring to the industry? Let us stay tuned.