Proof of Reputation: The Future Of DeFi

Decentralized Finance (DeFi) has become one of the most popular concepts of the crypto world recently, and with good reasons. Its applications not only opens unprecedented opportunities to users of any background, but it does so in user-friendly, and fully transparent ways. Today, the focus will be on Proof of Reputation (PoR), titled the future of DeFi by many—read on to find out why, and how you can take advantage of it. Decentralized Finance (DeFi) in a nutshell Before jumping into details about Proof of Reputation, a brief introduction to Decentralized Finance (DeFi) is needed. Essentially, DeFi is an aggregate term for all protocols that are not controlled by any central authority, leverage open blockchain technology, and provide equal opportunities for users to utilize financial services and other benefits through cryptocurrencies. There are numerous DeFi concepts out there, including liquidity providing protocols, Decentralized Exchanges (DEXs), staking options, and many more. Proof of Work, Proof of Stake, and Proof of Reputation Now that everyone is up to speed about the fundamentals, the attention will shift to the specifics. Generally speaking, DeFi and other crypto projects all use a so-called consensus mechanism to securely provide their services and perks to users. Such algorithms are needed so that the nodes (computers) maintaining the network are always on the same page about all the transactions, and that the ...