As technology and globalization spread their wings in the global financial system, the economies of countries all around the world started coming closer and closer. This paved the way for a successful flourishing, development, and evolution of resources, knowledge, and wealth from one corner of the globe to another. The financial expertise and pedagogies helped in the creation of an enormous amount of wealth, which eventually led to a whopping surge in the overall global economic ecosystem. Interestingly, for the longest time, even till today, the core financial systems operating in the global financial arena are centralized in nature. Being centralized implies that central authority has the ultimate control over all the activities taking place in a particular domain.
However, during the global financial crisis, the world was introduced with the first digital currency Bitcoin that was solely operated on a decentralized ledger technology, i.e., the blockchain network. This decentralized financial system was designed in sync with the latest technology and innovation, which was capable of catering the requirements of the economy. DeFi or the Decentralized Finance tools are designed on open-source protocols or public blockchains for facilitating the creation and issuance of digital assets. These tools help in eliminating the problems related to the centralized system and help in improving access to an array of financial services, even to the sector which goes unnoticed otherwise.
The Highlights of Employing Decentralized Finance Tools
- The purview of DeFi is limitless, which implies, that anyone in the world irrespective of wealth, status, sex, or location can connect to the decentralized network seamlessly. A person with a good internet connection and a smartphone can easily adopt DeFi services.
- Blockchain stores data in blocks and ensures that all the records are maintained simultaneously across thousands of participating nodes or computers in place of a single central server.
- In a DeFi system, no single authority tracks down the validation of a transaction being carried upon on the blockchain network as all the transactions are publicly subjected to verification.
- The Dapp developers can program business operations into economical and interoperable financial services.
- DeFi provides a seamless payment system across borders at affordable prices and enhanced security.
- The highest standards of security, transparency, and immutability are ensured in a decentralized financial system.
Launched in 2001, the Synthetix is a decentralized synthetic asset issuance protocol created on the Ethereum blockchain. It takes pride in being a renowned crypto-supported synthetic asset platform that offers accessibility to real-world currencies, stocks, indices, commodities, etc. The synthetic assets are collateralized by the Synthetix Network Token, which backs the issuance of synthetic assets or Synths.
The network operates as a highly acclaimed provider of AI digital customer engagement software in the cloud. The first product launched by Synthetix was a chatbot Virtual Agent named ‘Smart Agent’ that aided communication in a human-like manner with customers. With the constant efforts of the dedicated team of experts, Synthetix was listed among the global top 10 firms in the AI-driven Chatbot arena in 2018.
The Products Offered by Synthetix
The Synthetix.Exchange is a revolutionary trading platform that offers a user-friendly interface for successful conversions of the wide range of Synths offerings. It allows users to enjoy access to an array of synthetic fiat monies, digital currencies, and commodities. Digital wallets like MetaMask, Trezor, or Ledger wallets can be used effectively on the trading exchange. For conversion purposes, a person simply needs to connect the wallet containing Synth with the network. Then choose the Synths to be converted from and to, to the desired form and confirm the transaction. All the conversions take place on-chain and so nothing remains hidden from the investor.
The Mintr platform is a dApp that allows the SNX token holders to indulge in the minting of Synths and performing various other activities on the Synthetix Network. Apart from minting, the Mintr platform renders the users with a chance to manage their collateralization ratio, collect fees collected through the circulation of Synths, transfer sUSD, view balances, history, and many other operations.
Use a MetaMask, Coinbase, or Trezor wallet for connecting to the Mintr solution.
Synthetix Partnered with Chainlink
In March 2019, Synthetix collaborated with Chainlink to foster decentralized price feeds across its Synthetix.Exchange platform. The integration helped the exchange customers to build and run an oracle to get the price feeds for Synths on the trading platform. The team-up helped Synthetix in strengthening its decentralized network in a big way.