During the next Beam hard fork, scheduled for June 28, the network will lay the Foundation for creating confidential DeFi applications.
A fast-growing decentralized Finance (DeFi) industry, whose total product capitalization has already exceeded
$2 billion, faces a problem-most apps don’t provide privacy. Most of the DeFi products are created on the basis of Ethereum, and all transactions carried out in them are public.
In this regard, Beam developers want to contribute to improving the privacy of the DeFi industry. Beam Foundation Director guy Corem said:
“Beam will allow the use of truly confidential and decentralized DeFi tools, such as confidential stablecoins and synthetic products that will track commodities, stocks, and ETFs. All of them will be traded on a fast and truly decentralized exchange (DEX). Most of these tools will be created and launched this year.”
Beam cryptocurrency launched
in January 2019 and is based on the Mimblewimble privacy Protocol. The first Beam hard fork was held in August last year, and is scheduled for June 28
the next hard fork for updating the PoW algorithm from Beam Hash II to Beam Hash III.
The update, called Eager Electron 5.0, will also add confidential assets to the Beam network. Confidential assets are a type of token that can be created in Beam and used to represent almost anything, including other cryptocurrencies. Such tokens can be traded on the decentralized Beam DEX exchange.
To create a confidential asset, the user must block 3,000 beams worth $1,440 at the current exchange rate, and then issue any number of tokens of this type. Beam is held as collateral and unlocked when all confidential assets are returned and destroyed. KOREM said that this is a kind of protection from spam.
The update will lay the infrastructure for contracts without scripts (Scriptless Contracts). They are similar to smart contracts, but they keep the details of the contract confidential, just like the transactions themselves. Both of these features will help Beam support DeFi, while focusing on privacy. Beam technical Director Alex Romanov said:
“Within the framework of the confidential DeFi platform based on the Beam blockchain, you will be able to create sidechains based on Mimblewimble and integrate a wide range of Scriptless Contracts to support escrow, secured debt positions, multi-party transactions, and Oracle-based settlements. We will primarily focus on DeFi applications with centralized components, including confidential stablecoins, DEX, and synthetic assets.”