What Is Based-finance? (BDC) Complete Guide Review About Based-finance.

What Is Based-finance? (BDC) Complete Guide Review About Based-finance.

What Is Based-finance?

Based-finance Coin is a digital form of currency that is backed by the Crypto Bank which will be established on Dubai where you can get chance of Crypto loan, investment, Flexible Staking with huge APi. Note: listed hotbit, coinsbit, azbit, vindax Trading will start after pancake swap listing. Banking Decentralized Currency (BDC) has emerged as a hot topic in the financial world.

Several Central Banks are running analyses and studies investigating the technical and economic feasibility of the introduction of digital money and the impact it might have on monetary policy, liquidity, etc. In a series of posts, they will cover various aspects of this topic, including economic significance, modeling approaches and properties, and what benefits distributed ledgers might bring for BDC.

Based-finance Coin Storage Key Points

Coin BasicInformation
Coin NameBased-finance Coin
Short NameBDC
Circulating Supply1.00B BDC
Total Supply1,000,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

Benefits of BDC

BDC has a couple of interesting favorable properties. The two most relevant ones are probably the following :

1. Since Based-finance would have legal tender status and would not be your bank’s liability, you would not have to rely on the bank’s solvency. Your money would be safe, no matter how well the bank does.

2. The Central Bank would have a much more direct way to exert its monetary policy in that it would have a more potent tool to fulfill one of its main tasks: ensuring financial stability.

Problem Solution

PROBLEM

Banking Transaction
  • Shifting Banking Habits.
  • Weak Security For Which there is a Possibility of Hacking.
  • Technical issues for which transactions are delayed.

SOLUTION

Decentralize Network
  • Since Based-finance Coin is a decentralize crypto currency it remains unchanged.
  • BDC is a blockchain based token So there is no possibility of Hacking.
  • BDC token based on Binance Smart Chain where transaction will be fast and secure with low fees

PROTOCOL

Binance Smart Chain (BSC) is a blockchain network built for running smart contract-based applications. BSC runs in parallel with Binance’s native Binance Chain (BC), which allows users to get the best of both worlds: the high transaction capacity of BC and the smart contract functionality of BSC.

How does BDC differ from physical cash?

Based-finance is indeed reasonably similar to the bills in your wallet. But storing and transacting with physical currency is very inefficient and tedious. A digital representation of that value would be much more convenient and efficient.

How does BDC differ from the money in your bank account?

It is actually significantly different. The money you have with the bank is typically not legal tender. A dollar in your bank account is not the same as a dollar bill in your hand. It is much more a promise of the bank to give you a physical dollar upon your request. It is a bank’s liability to fulfill those requests. Usually, a bank has no issues in fulfilling that promise, hence the line between your money in the account and the physical cash gets blurred.

Based-finance Coin you don’t hold a legal tender in your checking account but only the “bank’s promise”, so to say, it means that if the bank doesn’t exist anymore, you can’t hold anyone to your claim, and are effectively losing your money. What is even worse is that if enough people think that their bank might run into solvency issues, they will withdraw their money to save it from loss.

What would be the future role of banks?

Banks have a much better insight into the needs and wants of their customers than crypto BANKs. Hence, they can be much more innovative when it comes to services around the usage of money. A bank could distinguish itself through various financial services like a particularly useful mobile banking platform, new mobile payment methods, investment advice,

Based-finance or an excellent trading platform. But one must also acknowledge that the banks’ essential role of a loan giver would indeed be at risk. To understand why this is the case, we need to know how banks can give loans nowadays.

The effect of BDC on the economy

If a significant number of the bank’s clients decide to hold BDC instead of having a bank account like today, the bank would have less capital to give out loans, which would, in turn, make loans more expensive and potentially even not viable.

The Based-finance Coin implication is that a thoughtless implementation of BDC without mitigating actions could have a drastic and adverse effect on the economy. It is probably one of the biggest reasons why crypto BANKs have not yet jumped at the opportunity to create a digital currency that would have legal tender status but are running analyses on how to solve the problem best.