Scaling Bitcoin: DeFiChain

This is the fifth and final part of a Bitcoin research series, where we will explore the technical details and growth of scaling solutions built atop the Bitcoin blockchain. The previous parts in this series can be found here:

This piece focuses on DeFiChain, a Bitcoin sidechain forked from Bitcoin Core, with its own consensus algorithm that is primarily Proof-of-Stake (PoS) but incorporates Proof-of-Work elements. Masternodes of the DeFiChain network stake DeFiChain tokens (DFI) to propose blocks to the network. However, the blocks proposed are expected to satisfy a “target difficulty,” which is the PoW element mentioned earlier. This mechanism will be looked at in greater detail in this research piece.