🇺🇸100 Grand in Less Than 100 Seconds

No, it’s not a mistake! You did read it correctly, and no you are not trapped in an illusion either. Just recently a DeFiChain user made more than a hundred grand with an initial investment of just $US 620. That’s a gigantic profit for a few minutes of rather easy work. All that happened on 01 March 2021 at 12.30 pm when a user successfully put the first anchor into the Bitcoin blockchain after the Dakota update had been successfully completed.

This may now sound a bit Greek to you, and you may ask yourself what was going on there and where those funds were actually coming from. Well, it all has to do with the fact that DeFiChain is periodically embedding blockchain information into the Bitcoin blockchain as transaction data. This process is called ‘anchoring’ and the foundation for it has been laid with the very first DFIP#1 ( https://github.com/DeFiCh/dfips/issues/1).

Since its successful implementation, 0.1 DFI of each mined block are put into a smart contract address. This smart contract can be considered a piggy bank where — when enough funds have been accumulated — people can take the accumulated DFI out by anchoring DeFiChain blockchain information into the Bitcoin blockchain.

However, the main point here is, that upon successful anchoring, the entirety of the smart contract holding (in DFI) is awarded to the anchorer. This process happened on 01 March 2021 when a DeFiChain user paid a total of $US 620 in Bitcoin fees to perform the anchoring task. The successful transaction on the Bitcoin blockchain can be seen here: https://www.blockchain.com/btc/tx/12ca5ac2b666478bbbdfc0e0b328552a8cd83aa1b3fbb822560ab8cbf72be893. As a result the successful anchorer got rewarded with a total of 32,156.8 DFI or slightly more than $US 100,000. The respective transaction on the DeFiChain blockchain can be seen here: https://explorer.defichain.io/#/DFI/mainnet/tx/38adbb540e5f28273721ef025830d8ec0b404f91c56f873d31b96516a8990739)

The technical part behind the anchoring is rather complicated and hard to understand for normal users, since it’s a multi-stage process, where deterministic masternode teams are assigned anchor data creation and anchor data confirmations roles. The whole interaction with Bitcoin is performed via a Simple Payment Verification (=SPV), which runs along the DeFiChain node. For those of you, who’d like to delve deeper into how the actual anchoring works and how it’s set up, we kindly ask you to check out the following link: https://github.com/DeFiCh/ain/wiki/What-is-an-anchor%3F. If you feel like setting up your own anchor, then this step-by-step guide may be helpful to you: https://github.com/DeFiCh/ain/wiki/Create-Bitcoin-Anchor.
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Originally published at https://defichain.ghost.io on March 5, 2021.




Bringing #DeFi (Decentralized Finance) to #Bitcoin. https://defichain.com

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