The normal Centralized Finance (CeFi) system suffers from many issues together with these of entry, effectivity, time, and price. Nevertheless 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, but it surely 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 one of the best of centralized & decentralized finance.
HyFi = (CeFi + DeFi)∞
A Hybrid Finance Blockchain ought to have:
1. Full help for KYC, AML, and CFT.
2. Strong grievance redressal.
3. Robust Client Safety mechanism.
4. Help for knowledge 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.