The normal Centralized Finance (CeFi) system suffers from many issues together with these of entry, effectivity, time, and price. However it has full help for KYC, AML & CFT and presents excessive grievance redressal mechanisms & client safety.
Decentralized Finance (DeFi) is an umbrella time period for monetary purposes powered by public blockchains. DeFi was supposed to resolve the issues of CeFi, however it has created a brand new set of issues, together with:
1. Close to-zero help for KYC, AML & CFT
2. Close to-zero grievance redressal & client safety
3. Unpredictable charges
Hybrid Finance (HyFi) combines the perfect of centralized & decentralized finance.
HyFi = (CeFi + DeFi)∞
A Hybrid Finance Blockchain ought to have:
1. Full help for KYC, AML, and CFT.
2. Sturdy grievance redressal.
3. Robust Shopper Safety mechanism.
4. Help for information privateness and encrypted peer-to-peer connections.
5. Regulatory compliance with right-to-be-forgotten rules.
6. Help for role-based asset controls for enterprise, compliance, and rules.
7. Help for freezing or quarantining of accounts and property pending investigation.
8. Predictable & low transaction charges
9. Help for versatile asset metadata.
10. Help for atomic multi-asset funds.
11. Help for multi-way atomic asset exchanges.
12. Help for exterior personal keys, multisignatures, and chilly nodes.
13. Nodes operated by verified entities
14. Unified JSON-RPC API for integration with purposes.
