Chinese blockchain project Nervos network has committed $5 million in grants to support blockchain entrepreneurs who are focused on building new solutions for DeFi in the future, and accelerate the centralized financial model built on traditional technologies to a decentralized infrastructure driven by blockchain.
According to the announcement, Nervos network encourages all developers to create trust-free and anti-censorship decentralized exchange (DEX) teams to apply, and also welcomes other auxiliary solutions, such as synthetic assets, KYC/AML agreements, decentralized loan solutions, and other team applications.
The new grants fund will be used to build trustless DEX, synthetic asset solutions, lending solutions, KYC/AML agreements, decentralized loan solutions, concentrating on projects desiring for interoperability across multiple blockchain networks and building blockchain-based solutions through DeFi to make financial services more inclusive and fair.
The nervos network was founded in 2018 by Ethereum mining pool Spark Pool developers. Nervos network is a public proof-of-work blockchain ecosystem which aims to tackle security and scalability issues with its two-layer design. Nervos open-sourced its mainnet “Lina” In Nov. 2019, and has acquired $72 million in a token sale via Coinlist.
Nervos Network Against Centralised Finance
With the growing number of retail traders entering the cryptocurrency market hitting a record high, the centralized financial framework has proved to be superannuated. Users are looking for instant transactions and on-demand access however the traditional systems (such as T+2 settlement and centralized governance, etc.) exposed the multitude of vulnerabilities, including market inefficiencies and dislocations, resulting in fueling frustration and distrust among users. Nervos network in their post also compared today’s blockchain to early internet applications placed on isolated networks owing to poor interoperability.
Nervos co-founder Kevin Wang said:
“On account of the barriers of traditional finance, users are moving towards blockchain and encryption technology, howevers the inability of centralised framework making it difficult for users able to conduct transactions on the blockchain and in order for the blockchain industry to develop and expand, we build the Nervos architecture to tackle these obstacles and created a truly universal blockchain that can serve as a gateway to a broader blockchain ecosystem”.
While DeFi is one of the fastest-growing sectors in the blockchain, DeFi is still in its infancy, representing a small fraction of the overall crypto sector, DeFi is yet to gain considerable market share from the traditional financial industry and is still far from mainstream adoption. Nervos’ DeFi Fund endows entrepreneurs and developers to help them launch new DeFi solutions to reach a wider market, thereby driving the transformation of financial infrastructure.