We have always dreamt of having truly automated banking that is free of middlemen and third parties. The decentralized finance platform has surely provided us with a glimpse of what we expected from it. The pace at which DeFi is growing is the real reason for the growing appetite among innovators and users. From January 2021 to May 2021, DeFi’s value has risen from around $21 billion to a whopping $150 billion. DeFi left Ethereum and started gaining traction all because of the high returns as well as the composability between different apps. This resulted in DeFi offering several perplexing ways to layer yield strategies.
The problem with Ethereum is that there are a lot of well-documented scalability issues with it. This resulted in some of the popular platforms such as Polygon, Terra, Binance Smart Chain, etc to gain prominence in the DeFi charts. Additionally, many apps now operate on multiple platforms such as Curve, SushiSwap, and more.
Everyone in the blockchain industry knows that DeFi is a killer use case in it which gives rise to the argument that it really deserves a platform of its own. It needs a platform that is fast, scalable, can deliver an amazing user experience, fits for the purpose, and can provide interoperability with other blockchains. And this is the aim and vision of Glitch Finance.
Glitch Finance: Introduction
Glitch Finance – a project for Glitch protocol – is the first purpose-built and scalable blockchain protocol for DeFi. It is also allowing its developers to launch several decentralized applications. But Glitch is a pure blockchain. Tendermint is a part of Glitch Finance and deploys a proof of stake consensus method to avoid the issue of whales that are taking all the control. It works on a carousel system which means that rather than selecting block producers through some votes, everyone will have a fair chance to produce a block.
Glitch is planning to perform a minimum of 3000 transactions per second and this number might increase depending upon the network effects. Eventually, there will be a need for a more profitable, efficient, and community-driven blockchain if the number of users is going to increase.
Revenue Sharing Model
Another great thing about Glitch Finance is that it runs on an innovative sharing model. It is specifically designed to reward all the individuals that have taken part in the network. 20% of the network fees and revenue, both are deposited in a vault that is solely based on blockchain. Secondly, all the funds are then distributed among the holders of the platform’s GLCH token. It is a reward for participating. Glitch provides a lot of benefits to its users. It includes a further low transaction fee that solves a pain point for people frustrated with the Ethereum fees. Further, it offers community support and creates a positive feedback loop between all the developers and the community. This is because it allows the holders to support these developers on the platform. This helps Glitch expand its reach.
There are a lot of DeFi protocols that are currently focusing on institutional adoption. However, Glitch Finance is targeting the global base of all the common users. Glitch Finance is a project that wants to fully eliminate third parties and even rent-seekers. This is so that they can enable a decentralized and open financial system that everyone can use if they wish to.
DeFi is rapidly spreading in blockchain technology. However, it still suffers from usability challenges that it acquired from Ethereum. Moreover, even after all this, it has come a long way and is paving its way to success in the market. This indicates that Glitch Finance has proved that it can have an appealing value proposition in the market.
Mass adoption needs a mass reach. This will be a challenging task for Glitch if it wants to achieve its goal. This is why the execution of the mainnet launch for them this year will be a bit critical. The only way through which Glitch Finance stands a solid chance to gain the type of traction that it wants is that it needs to establish a solid base of early users and developers.