There are at least 12 unique requirments for using Etherium.
* [ ] 1- Business Value and Problem-Solving Focus__We must determine if blockchain truly addresses a specific **business problem for NDC**, rather than adopting it for hype. We do this by first identifying the key potentials of blockchain - * [x] Removing Friction and Increasing Efficiencies * [x] Removing competing silos of Information * [x] Built by Consensus & Trust * [x] Can Substantially Reduce Costs * [x] Reduce Fraud * [x] Track and Trace Transparency * [ ] Data Silo Reconciliation * [ ] Self Revenue Generating
In September 2022, Ethereum, an open-source cryptocurrency network, addressed concerns about energy usage by upgrading its software architecture to a proof-of-stake blockchain. With Proof of Stake, investors deposit their crypto coins in a shared pool in exchange for the chance to earn tokens as a reward. In proof-of-stake systems, miners are scored based on the number of native protocol coins they have in their digital wallets and the length of time they have had them. The miner with the most coins at stake has a greater chance to be chosen to validate a transaction and receive a reward. This is the economic incentive for token holders to **lock up, or stake, tokens in their selected validators**. Each validator’s consensus voting weight is proportionate to the amount staked into it.
# Types of DeFi Financing
__Lending:__ You can deposit crypto into a “lending pool,” that is then borrowed from by other crypto users who deposit their own assets as **collateral**. Lenders can earn **interest** by providing liquidity to the pool. Compound 
is one of the most popular lending dapps.
__Borrowing:__ You can also use a number of dapps, like Save or Compound, to borrow crypto against your own holdings. You simply deposit your collateral and take out a loan from one of the available lending pools.
__Liquidity Providing:__ Since DeFi doesn’t depend on intermediaries, the capital that’s used on DeFi apps to facilitate trading is provided by other users of the platform, in the form of something called a liquidity pool. They’re essentially crowdsourced sums of pairs of cryptocurrency that are locked into a smart contract. To join a liquidity pool, you need to deposit equal parts of a trading pair, like AVAX and USDC, for example, and agree to leave it there for a certain period of time. In exchange, you’ll receive a portion of the fees generated by the trades made with that pair, in the form of a third token.
__Yield Farming:__ Yield farming is perhaps the **riskiest corner of DeFi**. When liquidity providers earn tokens as rewards for providing liquidity, there are also opportunities to use those tokens as liquidity for other pools, which amplifies your returns by creating multiple channels of passive income. The most sophisticated yield farmers employ complex strategies involving moving sums of crypto between exchanges and dapps in attempts to find the highest interest rates. PancakeSwap is a popular platform for yield farming on BNB Chain.
__Collateralizing an NFT:__ Do you own a high-value NFT that you don’t want to sell, but might want to get some liquidity out of? You can use a dapp like NFTfi to deposit an eligible NFT as collateral, and receive a peer-to-peer loan from someone willing to provide you that liquidity.
__DeFi insurance:__ The DeFi ecosystem is still brand new, meaning it is full of potential risks that could jeopardize money you’ve deposited into an app. For example, a smart contract bug, like the infamous one that took down The DAO in 2016, could wipe out your entire investment. Platforms like Nexus Mutual can help provide some level of protection.
* [ ] 2. Multi-Party Scenario__ * [ ] 3. Trust Requirements__ * [ ] 4. Data and Transaction Needs__ * [ ] 5. Governance and Control__ * [ ] 6. Regulatory and Legal considerations__ * [ ] 7. Scalability__ * [ ] 8. Integration Capabilities__ * [ ] 9. Security and Privacy__ * [ ] 10. Cost-Benefit Analysis__ * [ ] 11. Organizational Readiness__ * [ ] 12. Industry-Specific Factors__
We anticipate the smart contracts providing the agreements that integrate a large number of new small enterprises in local communities as well as agreements with governmental agencies/departments and other existing businesses.
Since there will be no higher or centralized authority (hierarchy) we need agreement and payment methods that do not require trust that payment will be made in alignment with the agreements.
We prefer not to rely on centralized databases if possible, because trust in needed in the owners or operators of the databases. Much regulation and governmental oversight would be required. E.g. banks.
We are aiming for completely decentralized decision making. All control will be through smart contracting and transparent reputation management. Peer pressure will be very real in small neighborhoods where we are starting.
We hope to minimize the need for new regulatory and legal costs when possible.
We are building infrastructure to support ecosystems--potentially large networks (webs) of mutual self-organizing production systems.
We intend for our infrastructure to be capable of connecting existing business and governemental agencies with already existing users of our infrastructure. In other words we plan for massive integration over time.
We require security (tamperproof) but aim for transparency (open rather than private) to encourage public reputation as a proxy for trust.
This coordination and cooperation infrastructure must be affordable by small new neighborhood scale businesses.
We do not intend to transform current large businesses. We intend to create many new businesses who come into existent using this platform.
Our initial domain of focus includes neighborhood development centers intent upon creating local ecosystems that are made up of many new local business.
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For me, conversations about blockchain are usually a facade around Trust and a misunderstanding of what blockchain is. Blockchain doesn't solve the trust issue. Both parties still need to "trust/agree" to use the block chain. The "blockchain" is a public journal ledger that is crypto-graphically structured so that it's believed that the transaction history cannot be altered. There is still a control issue about who/what is allowed to add to the blockchain and whether those additions are recognized as valid. In the case of crypto currency, to pre