The normal Centralized Finance (CeFi) system suffers from many issues together with these of entry, effectivity, time, and price. Nevertheless it has full assist for KYC, AML & CFT and presents excessive grievance redressal mechanisms & shopper 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 assist for KYC, AML & CFT
2. Close to-zero grievance redressal & shopper safety
3. Unpredictable charges
Hybrid Finance (HyFi) combines the most effective of centralized & decentralized finance.
HyFi = (CeFi + DeFi)∞
A Hybrid Finance Blockchain ought to have:
1. Full assist for KYC, AML, and CFT.
2. Sturdy grievance redressal.
3. Sturdy Client Safety mechanism.
4. Assist for information privateness and encrypted peer-to-peer connections.
5. Regulatory compliance with right-to-be-forgotten rules.
6. Assist for role-based asset controls for enterprise, compliance, and rules.
7. Assist for freezing or quarantining of accounts and property pending investigation.
8. Predictable & low transaction charges
9. Assist for versatile asset metadata.
10. Assist for atomic multi-asset funds.
11. Assist for multi-way atomic asset exchanges.
12. Assist for exterior personal keys, multisignatures, and chilly nodes.
13. Nodes operated by verified entities
14. Unified JSON-RPC API for integration with purposes.