What is TeDeFi Network? Tefi coin and PoSA with Telegram Nodes Explained
Blockchain technology is evolving faster than ever before, meaning we need to sort out the differences between CeFi, Defi, CeDefi, TeDefi, or their consensus mechanisms like PoW, PoS, DPoS, CaaS, PoSA, and other less known algorithms.
The authoritarian CeFi
Back in the early days, people relied on centralized exchanges (CEX) as the only way to reliably buy or sell crypto was through centralized exchanges (CEX). The pros to CEXs are that they work, they’re somewhat stable, and they rely on older technology, which means that most users know how to use them.
However, CEXs on the downside come with a range of potential issues such as embezzlement, potential hacks, transparency issues, lack of absolute control over funds, and much more. This is especially problematic considering that users’ valuable digital assets are at stake.
The Democratic DeFi
Decentralized finance are made up of financial applications that operate through a decentralized blockchain, therefore removing the need for users to use third-party. A few examples are Uniswap, MakerDAO, and Compound.
The first blockchain with smart contract functionality was Ethereum, that was launched using the proof-of-work (PoW) consensus protocol, similar to Bitcoin.
The PoW data allows computer nodes, which secure and guard the platform, to agree on the validity of the information published on the Ethereum network, helping prevent economic attacks.
However, the PoW algorithm is not perfect. Its flaws — including slow transaction times and high fees — became too large to ignore. The rise of decentralized finance has underscored the importance of an efficient network.
The Proof of Stake(PoS) is another consensus mechanism that came about as an efficient alternative to the PoW algorithm. The idea behind it is that it makes mining new blocks easier for holders of greater amounts of the token in case.
It later evolved into Delegated Proof of Stake(DPoS), which sees users stake coins to a list of elected delegates tasked with producing blocks on the network and maintaining consensus rules. EOS and Tron are examples of such networks. The DPoS algorithm can process a lot more transactions per second than the ones mentioned above.
Proof of Authority(PoA) is another algorithm that strived from the need for more efficient and scalable blockchain networks. It’s similar to DPoS, but with validator nodes staking their reputation instead of coins, confirming their identities, and proving they can be trusted. PoA is generally considered an effective algorithm for private blockchain due to its strong performance and need for trusted validators.
Binance Smart Chain created a hybrid between PoA and DPoS, naming it Proof of Staked Authority (PoSA) or Parlia. This consensus model can support a short block time and low fees, and requires just 21 validators to run. Validators take turns to produce blocks in a PoA manner, earning a reward but also requiring daily re-election by staking governance in oder to continue as part of the validator set.
This algorithm laid the foundation for the TeDeFi blockchain. PoSA does a great favor to the DeFi industry, however, it has the same bottleneck as others.
To use the blockchain, for example, if you want to trade a coin on a decentralized exchange or check your balance, the average user needs to use a gateway app. Alternatively, with exchanges like Binance, you need to access their centralized exchange, but this is under regulatory scrutiny and can change their rules any moment.
TeDeFi aims to solve this issue by enabling validator nodes to communicate directly to their Telegram Exchange Bot and wallet bot through their MTProto secure protocol.
EFI is the native token of the TeDeFi network, and it fuels the ecosystem and enables the following:
- Exchange fee discount
- Staking to a validator node
- Gas fees
- Governance power
- Validator nodes reward
The TEFI coin is currently deployed on the BSC chain and is traded through their TeDeFi Telegram platform. The price is determined by demand and is seeing constant growth, which makes it an interesting investment for early adopters.
Overall TeDeFi is an ambitious project aiming to building a fast, autonomous and secure network without sacrificing decentralization or requiring third party software to access the chain.