Bytom, the next big thing in DefiThe origins of Defi Defi, short for decentralized finance, simply refers to anything financial that happens without a cen-tralized institution as an intermediary.
Bitcoin is a financial medium of exchange and a store of value that exists without a central issuer. Therefore, it is an example of something that falls under the category of DeFi.
Expanding on the concept of DeFi one step further, what happens when someone wants to borrow money or earn interest on their savings? Traditionally, we would seek the services of a financial in-termediary such as a Bank.
However, the latest development in the digital currency space is attempting make available simple financial instruments, such as interest bearing deposits and loans, to everyone in a decentralized way.
By doing this, many protocols are attempting to replace traditional banks with smart contracts and, in doing so, revolutionize the exiting financial system and remove it from the power of any one cen-tralised authority.
What are Bytom and MOV?Quietly making progress in this field is a blockchain project called Bytom. Bytom was created as a protocol for financial and digital asset applications. The Bytom blockchain uses BUTXO, which expands on Bitcoin’s UTXO. Bytom also supports multi asset transactions, which is not a feature of Bitcoin.
Bytom is asset focused. The main question it set out to solve was how to use blockchain to improve asset formation.
Bytom’s founder ChangJia speaks about the so called three-stage theory of an asset: An asset’s evo-lution will go through three stages, Solid - liquid – Vapor.
1, Solid: The first stage is the confirmation of assets, which can be transferred as a whole after con-firmation. This process is the stage of asset solidification.
2, Liquid: The second stage is the securitization of assets. After the securitization, its liquidity is im-proved.
3, Vapor: The third stage is the tokenization of assets, otherwise referred to as “blockchainization”. In this stage, the asset flows more easily than ever.
ChangJia believes that the vapor stage is truly realized after tokenization of assets.
This is the background of MOV, a new decentralized and interoperable DeFi protocol created by Bytom. The Bytom blockchain is focused on asset creation and MOV is focus on the circulation of those assets.
MOV DeFi VS Current DeFiMOV has many advantages to currently available DeFi protocols that largely exist as parallel proto-cols on the Ethereum Network.
The current DeFi environment can be seen as multiple DeFi ecosystems, existing side-by-side on the Ethereum blockchain, that created by different parties, but not very consistent with each other.
Bytom is comprised of a custom made DeFi suit made specifically to communicate and inter-operate with the entire MOV ecosystem.
MOV is creating a DeFi protocol suite comprising cross-chain functionality, DEX and asset (stable-coin, synthetic asset) lending.
If you would like to find out more about Bytom and MOV, please checkout their website at
https://bytom.io/en/
