Why Choose Rowan Energy Over Other DeFi Projects?
DeFi has become a hot topic in the blockchain community in the past few months. As of writing this article, the total value locked in DeFi was an astounding $ 8 billion gaining traction from crypto enthusiasts across the world. Whereas Bitcoin and similar crypto coins decentralize the money system, DeFi applications take a broader approach and aim to decentralize and overhaul the traditional financial industry by making it accessible to everyone. To put it simply, DeFi applications are developing permissionless financial service ecosystems based on blockchain infrastructure. The popularity of DeFi tokens is rising by the day, outpacing the value of conventional cryptocurrencies.
Is the craze well-founded?
Let us see. The one major reason why DeFi has been able to spread its root is because of our conventional regulations from a bygone era. Despite DeFi posing a threat to secure financial services as people are vying to put their money into an unregulated space, our regulators are yet to catch up with fast-evolving technologies. They fail to meet the requirements of a tech-savvy consumer base.
The COVID-19 pandemic has also played a major role in sparking a bullish sentiment in the market for DeFi tokens. And obviously, investors don’t want to miss out on the too good to be real explosive growth promised by the tokens, which further shoot up their value.
Why not as good as it sounds?
The following inherent problems faced by Ethereum would possibly make its way into DeFi:
1. Network Clogging
When the traffic is high, the Ethereum network slows down leading to congestion on its blockchain. Transactions will remain pending causing market inefficiency and information delays.
2. Transaction fees
Transactions have to compete with each other based on the gas fees charged on Ethereum. If your transaction has a lower gas fee, it will have to wait until other transactions are completed.
3. Time delay
The state of the blockchain is updated only every 15 seconds. Since interest and prices are calculated per block on DeFi, stable block mining is required for efficient operation.
Moreover, DeFi poses a significant risk that arises from the interdependencies of DeFi protocols. To cite an example, the failure of pricing oracles offered by projects such as MakerDAO and Chainlink. The gas prices rose so high that many transactions were queued. As a result, the oracles were not able to update their price feeds soon enough to keep up with the fast decreasing price of ETH.
4. Operational risks
When price feeds and complex governance protocols are manipulated, it leads to operational hiccups.
A truly decentralized financial system with no regulation or authorities to keep operations in check has its own demerits as proven by the latest Sushi exit scams.
How an investment in Rowan Energy is secure
The world’s first-ever community-supported green energy blockchain, Rowan Energy Blockchain will make available a series of Energy-focused apps into the 21st-century energy market. Rowan Energy aims to digitize and decentralize the industry which hasn’t seen any major revamping or technological adaptation in a very long time.
The blockchain-based reward system on Rowan energy will encourage people to install rooftop solar. Customers can exchange solar among them offering an affordable green energy solution and quicker returns for any extra solar energy they produce. The transactions on the platform will be made in Rowan tokens.
Here are some reasons why Rowan tokens will prove to be more profitable than any other DeFi tokens in the market:
1. Low powered Proof of Authority consensus mechanism
Rowan Energy Blockchain uses a super low powered, Proof of Authority consensus mechanism, thereby leaving a very low carbon footprint. All members on the platform contribute to the community by generating electricity, making it available for peers, and validating the transactions.
2. Huge reception in the market
Rowan Energy brings forth a very unique and innovative idea to the market a wide audience is keenly looking forward to. Even if you plan to go green and make use of solar rooftop panels for your energy consumption, the current scenario in the UK doesn’t really provide many options. The reward system is not as rewarding as you expect them to unless you own a large green energy farm. There are a number of legal hurdles to get past before you can avail renewable energy certificates. Rowan Energy Blockchain will foster a community and help them make passive income for their energy production.
3. Promising results
Since the launch of Rowan tokens on VINDAX & LATOKEN, the results have been overwhelming. In fact, the price of RWN tokens rose by 1000%+ in a period of just 7 days. On Sept 15th RWN will be listed on PROBIT exchange. As the number of users on the platform increases, the price of the tokens is also expected to increase.
The buy-pressure is expected to remain constant as the tokens purchase will be used to reward Rowan Energy participants. An average UK household produces 20kWh per day. In the trial phase, 100 users will be rewarded at the rate of ¬£0.25 in RWN per 1kwh for the renewable energy they produce. As you can see, this is enough to create a lot of token movement.
4. Demand pushed by exchanges
Further demand for the tokens is created through the limited supply made available on exchanges. An increasing number of users are adding RWN tokens to their Rowan vault to earn interest.
The list of DeFi apps in the market has certainly grown longer in the past few months. Despite that, most of the projects have failed to keep up with their promises owing to the gap between theory and practice it is yet to fill. On the other hand, Rowan Energy Blockchain will prove to be a more profitable investment in terms of high liquidity, audience confidence, accessibility, and intuitive UX among others.