Corporate Update DeFi Strategy, Enterprise Development Initiatives and New Customer Acquisitions
TORONTO, March 03, 2021 (GLOBE NEWSWIRE) -- Blockchain Foundry Inc. (“BCF” or the “Company”) (CSE:BCFN), a leading North American blockchain development firm, is pleased to provide an update on its
product strategy, development initiatives and new customer acquisitions.
The Company is actively pursuing a two-pronged strategy to roll out products in the decentralized finance (“DeFi”) space and more traditional enterprise software solutions which leverage blockchain capabilities.
Decentralized Finance (DeFi) Initiatives
DeFi is a new area of blockchain technology that uses smart contracts to perform operations that would typically be performed by centralized entities or a series of intermediaries. Some examples of DeFi applications include:
- Non-fungible tokens (“NFTs”), representing unique items such as works of art, digital collectibles or in-game items;
- Automatic trading, market making and liquidity pools for digital assets;
- Insurance contracts triggered automatically by pre-specified events and conditions; and
- Stablecoins which are pegged to fiat currencies, precious metals or other traditional asset classes.
Most DeFi applications are built on the Ethereum blockchain. As discussed in previous Company disclosure, BCF has been a major contributor to the open source Syscoin blockchain protocol, which has cost, speed, security and scalability advantages over many public blockchains, including Ethereum.
BCF is assisting with the development efforts for the next release of Syscoin, version 4.2, which is expected to be released by April 30, 2021. Syscoin 4.2 will feature support for NFTs, a commonly requested feature by BCF clients, and will lay the groundwork for future Syscoin innovations, including Syscoin’s Network-Enhanced Virtual Machine (“NEVM”). NEVM is an improved version of Ethereum’s Virtual Machine (“EVM”) and serves as the backbone for smart-contract execution within the Syscoin ecosystem. NEVM will provide better security, speed and scalability through the use of zero-knowledge proofs (“ZKPs”)1.
Key to the Company’s strategy is enhancing the Syscoin protocol in ways which allow BCF to operate decentralized finance applications in much more efficient ways than are currently possible on today’s public blockchains. Over the next 3-6 months, the Company intends to release an initial DeFi solution to be developed on Ethereum or Binance Smart Chain. This initial DeFi implementation is expected to have lower fees than competing products due to the Company’s unique expertise in ZKPs in combination with Layer 1 and 2 systems which will be adapted to this solution. Competing DeFi products, most notably products like Uniswap, Balancer, Kyberswap and 1Inch, charge a fee based on the transactional volume processed by the platform. Uniswap charges a fee of 0.3% and frequently handles more than $1 billion in daily trading volume and processes over 100,000 daily transactions2. On the current Ethereum network, 100,000 transactions would cost approximately $300K compared with less than $1 for the same number of transactions on the Syscoin network3.