In 2020, the landscape of decentralized finance (DeFi) was brimming with potential but fraught with safety and security concerns. It was then that the vision for a non-Turing complete blockchain, exclusively tailored for DeFi, took root.
Fast forward to today, and that vision has not just taken shape but is thriving as a collaborative ecosystem as the next pivotal moment in DeFiChain history comes to fruition: the launch of the MetaChain layer.
The MetaChain layer marks the culmination of over two years of steadfast ideation and rigorous development. Its activation is a milestone in advancing blockchain technology to new heights of functionality and reliability and ultimately makes DeFi accessible for everyone.
What Does it Mean for DeFiChain?
DeFiChain's new Ethereum Virtual Machine (EVM) layer (MetaChain) marks a major architectural evolution. With the MetaChain layer, DeFiChain can now support EVM transactions while still keeping the security benefits of its UTXO model.
How Does it Work?
DeFiChain introduced a new transaction type called xVM. These xVM transactions have no inputs or outputs. They simply contain the EVM data. This allows the EVM subsystem to verify EVM transactions separately without needing to know about UTXOs.
The xVM transaction concept draws inspiration from Bitcoin's coinbase transaction. By segregating EVM transactions in this way, DeFiChain achieves EVM compatibility while maintaining UTXO security.
This innovation also enables smooth integration with existing Ethereum tools like MetaMask. Overall, the MetaChain layer and xVM transactions open up DeFiChain's possibilities tremendously while upholding its core advantages.
Distinct Domains and Seamless Interaction
With the integration of EVM, DeFiChain's ecosystem will comprise three primary domains: UTXOs, token systems, and EVM accounts.
Designed with well-defined boundaries, these domains remain separated by unique and distinct attributes. By separating these domains, the UTXO model is protected and enables precise and transparent accounting across the ecosystem.
To facilitate movement between domains on DeFiChain, users must deploy the Transfer Domain Transaction (TX). TX is the exclusive method for transferring assets between different domains, establishing a coherent accounting layer.
Using the TX, users can effortlessly and securely navigate within the DeFiChain ecosystem.
With DeFiChain's nodes now fully supporting Ethereum addresses, transferring funds into the ecosystem has become even more convenient.
Compatibility with Ethereum addresses - especially 0x addresses - gives rise to two key benefits:
- The boundaries separating domains are preserved within the DeFiChain node.
- A seamless user experience that enables users to interact with Ethereum-based tools and platforms with ease.
What Does This Mean For You?
As a User
For users, DeFiChain now grants access to both the original UTXO domain and the new EVM domain. The UTXO side remains unchanged - you can still use DeFiChain as before. The EVM domain opens up all the Ethereum-based dApps you're already familiar with using MetaMask on other platforms and blockchains. Soon, you'll be able to interact with many similar dApps directly on DeFiChain too.
To tap into the EVM side, connect your MetaMask wallet to DeFiChain by configuring the RPC settings like shown here. It’s a straightforward process and takes just a few minutes, yet unlocks a whole new world of decentralized finance options to explore. With your MetaMask wallet connected, you'll have access to a plethora of new dApps and investment opportunities right on DeFiChain.
The possibilities are endless with the launch of the MetaChain layer. This is just the start of an exciting new chapter as we continue expanding the DeFiChain ecosystem. Soon you will be able to tokenize real-world assets like real estate or treasury bonds, take decentralized loans against them, build decentralized money markets, and more. There is so much more in store - this is only just the beginning!
As a Developer
For developers, MetaChain provides more options without added complexity. You can deploy smart contracts once and tap into both the Bitcoin and Ethereum ecosystems simultaneously.
MetaChain combines the security of DeFiChain's UTXO model with Ethereum's account-based transactions. This means developers can build without worrying about differing systems across chains.
You can further accelerate time to market by forking code and porting smart contracts others have built. Unique features like autonomous triggering of dApps based on conditions simplify development too.
Within the DeFiChain ecosystem, the innovative concept of MetaChain is being developed to expand the scope of Virtual Machines (VMs). Apart from integrating VMs with the DeFiChain platform, the MetaChain layer aims to forge connections with other blockchain networks like COSMOS. This approach will unveil many new possibilities for DeFiChain and its users.
The team is also focused on revamping the Atomic Swap feature, which will facilitate a more seamless exchange of assets such as BTC, DFI, and ETH, thus enriching the user experience with greater flexibility and efficiency in transactions. Concurrently, the team is also exploring the potential integration of Taproot, a recent upgrade within the Bitcoin protocol, aiming to leverage its advanced privacy and efficiency features for DeFiChain.
In addition to these advancements, there is an ambitious effort underway to reduce the blocktime. The objective is to achieve a blocktime of approximately 10 seconds to speed up processing while maintaining the network's stability. This acceleration is being approached with caution, as shorter blocktimes have the potential to induce chain splits, particularly due to the nature of the UTXO/BTC model. To mitigate such risks, the team is increasing the number of 'Block Candidates,' which is anticipated to contribute to the network's enhanced performance without compromising its integrity.
The development of the MetaChain layer is still in its infancy, with ongoing discussions and brainstorming to define its specific functionality and role within the DeFiChain ecosystem. Fundamentally, the MetaChain layer intends to link various chains, bridge gaps, and enhance interoperability across diverse blockchain networks.
The upcoming development of the cross-chain protocol will provide the final piece of the puzzle, setting the stage for the MetaChain layer concept to become a reality.
But for now, check out the exciting new dApps that will soon be deployed on the MetaChain layer. Here is a short list: