What is ThirdFi?

What is ThirdFi?

What is ThirdFi?

Tuesday, March 7, 2023

What is ThirdFI

ThirdFi is a web3 infrastructure protocol built to empower decentralised finance (DeFi) with emphasis on interoperability, middleware solutions with developer friendly API implementations. With DeFi and digital assets growing exponentially, the need for a more secure and robust infrastructure has never been greater. This is where ThirdFi comes in.

The History

Throughout history, the concept of money has evolved. From seashells, silver, and gold to paper money, and now to fiat currency, man has continued to use his wisdom and advancing technology to create improved versions of the original idea of what money is and how to store it safely. In the past, Goldsmith safes were used, but today, we have more sophisticated bank vaults, and starting from now, money and its store of value will shift into the digital world.

Each evolution of money has brought a new level of trust, and centralised authorities have been the trusted custodians of this trust. Still, the rise of blockchain and digital ledger technology (DLT) has given birth to a new form of trustless, decentralised money. Trustless, it doesn’t rely on the credibility of the issuer or the receiver; it relies on a decentralised structure that offers a trustless, permissionless and global network. 

Massive & Growing Market

The digital finance industry is a trillion-dollar industry, and DeFi and cryptocurrency are expected to grow exponentially in the next 50 years. According to a report by Allied Market Research, the decentralised finance market is expected to be worth $231.19 billion by 2030.According to the report, the DeFi market is expected to hit a 22.1% CAGR from 2021 to 2028. The fast-growing adoption of blockchain technology and the growing popularity of cryptocurrencies drive this growth.At the height of web3 and DeFi interest in November 2021, the DeFi total value locked reached $100 million, and today, there’s a total of $42.4 billion locked in DeFi TVL. The Blockchain involvement in Finance is expected to grow to about $67.4 billion by the year 2026. 

DeFi gains popularity as a disruptor of the traditional financial system. DeFi can change the financial landscape by removing the need for intermediaries such as banks, allowing people to lend, borrow and trade cryptocurrencies and digital assets without any central authority.The key to building a more resilient financial system is to find ways for DeFi and TradFi to work together in which DeFi projects collaborate with traditional financial institutions to provide new financial products and services. For example, a DeFi platform could partner with a financial institution to offer financial services to underserved communities, using smart contracts and blockchain technology to improve efficiency and reduce costs.

Despite the enormous potential of DeFi, gaps still need to be addressed. According to a recent survey by Deloitte, 55% of consumers said they needed to learn more about blockchain to use it, and 74% said the complexity of blockchain technology was a significant obstacle to mainstream adoption. The report concluded that simplifying blockchain technology would be the key to unlocking its potential for mainstream adoption.The multi-chain nature of web3.0 and the complexities of blockchain transactions are significant hurdles, but efforts are underway to overcome these challenges and make blockchain technology more user-friendly.


The Gap

Although DeFi will revolutionise many financial aspects in the trillion dollar market, the user experience (UX) of blockchain-based decentralised applications (dApps) remains a significant hurdle for mainstream adoption. The complicated UX is due to the nature of blockchain transactions, which require users to have significant knowledge of cryptocurrency wallets and how to estimate gas correctly. 

One of the main issues with blockchain-based dApps is the multi-chain nature of decentralised finance (DeFi), which exacerbates the already existing UX issues. Users often need help interacting with dApps deployed on multiple chains, and moving between different chains can be time-consuming and frustrating.While newer implementations of layer 2 and scaling solutions, such as Polygon, BNB Chain, Avalanche, Arbitrum, Optimism, Zksync and more, have attempted to address these issues, they have their UX problems that can make the user experience even more complex. For instance, users need to understand layer 2s and why they can’t access their funds on dApps, manually change RPC to interact with various chains, and use bridges to send their funds to these chains. Furthermore, onboarding any scaling solutions needs to be faster, simpler, and more affordable.Complicated UX issues in blockchain-based dApps can overwhelm users, making it challenging for mainstream adoption. While various solutions have attempted to address these issues, more work must be done to make blockchain technology more accessible and user-friendly. The fragmented multi-chain infrastructure presents a significant challenge for blockchain-based dApps. The issue goes beyond the complicated user experience, as delays caused by the movement of value and the lack of seamless transfer of funds across various chains are also significant problems that must be addressed.Additionally, communication and contract calls across different chains are complex and non-trivial, causing high friction between chains, layer 2s, and sidechains. This fragmentation has resulted in isolated communities with lower network effects and composability, ultimately hindering the growth and adoption of the multi-chain decentralised applications.The disjointed underlying infrastructure is another significant issue. Users must choose between Ethereum’s network and composability or layer 2’s cheaper and faster transactions, but not both. As dApps and users move into a multi-chain world, the multi-chain infrastructure must scale seamlessly to meet their needs.In summary, the fragmented multi-chain infrastructure and complicated UX issue are significant hurdles for blockchain-based dApps’ mainstream adoption. The lack of seamless transfer of funds and communication across different chains makes it difficult for dApps to communicate efficiently across the whole multi-chain web in real time. A seamless multi-chain infrastructure is necessary to scale dApps and improve user experience, allowing blockchain-based dApps to reach mainstream adoption. 

Our Vision: "Picks and Shovels"

 At ThirdFi, our vision is to provide a scalable and interoperable interface between different infrastructure protocols for DeFi. Our solution is a web3 finance middleware with API solutions, a multi-chain relayer, and cross-chain infrastructure. This infrastructure will empower the open-source developer movement and accelerate the adoption of DeFi, onboarding the next billion people to the world of decentralised finance.The solution for addressing the issues faced by web3.0 is a multi-chain relayer protocol.ThirdFi has developed an advanced implementation of this protocol that is explained in the following sections:

Meta transactions: This allows a third party Dapps, developers or a relayer to execute transactions on behalf of the user. The user only needs to sign a message containing the transaction details, and the relayer executes the transaction details on the desired blockchain, including paying the gas fees. This simplifies the process for users who don’t need to own native tokens, estimate gas, or pay gas fees, as the ThirdFi relayer takes care of everything else.Cross Chain Transactions: ThirdFi enables meta-transactions on various blockchains and L2s, allowing dApps on these supported networks to offer gasless transactions to their users. The ThirdFi also facilitates the flow of value and messages across different chains in a secure, affordable, decentralised, and interoperable approach. Users can instantly transfer their funds across various chains, communicate and call contracts on other chains, and interact seamlessly with dApps on every chain.Decentralised Relayer Network: ThirdFi’s decentralised multi-chain relayer network manages and processes meta-transactions, cross-chain transfers, and cross-chain communication. A distributed set of node operators on every supported chain powers the ThirdFi network. This transaction network is inherently multi-chain and serves as the foundation for a seamless multi-chain infrastructure for decentralised finance. 

Team

The ThirdFi team is a group of experienced developers who have relaunched from Securo.dev. Their mission is to accelerate the future of DeFi and provide a more robust infrastructure for the DeFi ecosystem. ThirdFi empowers developers to create and innovate within the DeFi space by providing open-source solutions, making it more accessible to everyone.Visit these links to connect with the ThirdFi team.

https://www.thirdfi.org/about.html
https://link3.to/thirdfi  

Conclusion

In conclusion, ThirdFi is a web3 finance middleware infrastructure designed to empower decentralised finance and digital asset management. With the growing market for digital assets and DeFi, ThirdFi provides a much-needed solution to the gaps in the current infrastructure. The team behind ThirdFi is dedicated to accelerating the adoption of DeFi and empowering developers to create and innovate within the space. The future of DeFi is exciting, and ThirdFi is well-positioned to be a driving force in its evolution

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Supercharge web3 with ThirdFi infra⚡

Supercharge web3 with ThirdFi infra⚡

Supercharge web3 with ThirdFi infra⚡

©ThirdFi 2024. All Rights Reserved.

©ThirdFi 2024. All Rights Reserved.

©ThirdFi 2024. All Rights Reserved.