Well-entrenched blockchain networks are still susceptible to lingering issues such as increasing fees triggered by clogged networks and high barriers to running a node encountered by users.
These growing concerns are caused by a lack of consideration of sustainability in designing blockchain nowadays – a flaw that endangers the very essence of the technology, decentralization.
The policy of Ethereum (ETH) blockchain, where the Decentralized Finance (DeFi) runs, where nodes are managed solely by special servers, has nothing to offer in the usability of the chain. It only causes an increase in fees and more importantly, a majority of users are left out in governance decision-making.
As overwhelming as they seem, these problems haunting DeFi are the targets of Mintlayer to solve as it aims to cement its status as a long-term, secure solution that assures scaling and acceleration of the future of Decentralized Finance (DeFi).
How the Mintlayer Blockchain works
Each Mintlayer block on the network has reference to a corresponding Bitcoin (BTC) block as the blockchain is anchored on BTC.
Among the users that stake MLT tokens and pass the minimum threshold, the participants in the Mintlayer round are chosen. Those that are selected through an election enforced by an algorithm will collaborate to create the chain’s blocks.
In theory, the higher MLT tokens that are staked by a user, the greater the chances are of being chosen as a participant.
About the Mintlayer blockchain
Shaping its security after that of Bitcoin (BTC), Mintlayer creates the first sustainable framework for Decentralized Finance (DeFi).
As Core Engineer Enrico Rubboli noted that in a free-market economy, every individual should be “free to produce, store, exchange assets, and access financial markets.” Without any limitations, Mintlayer is leveraging every ounce of technology it has to eliminate such limits.
As a blockchain that better directs token connectivity and provides ways for value trading, systems creation, functionalities participation in genuine trustless finance, Mintlayer is truly for DeFi.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/mintlayer-a-true-pro-defi-network/
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