Decentralized Finance (DeFi) has lately been one of the most popular crypto concepts, and for good reason. In the past few years, DeFi has managed to bring a sweeping change in the financial world. The Ethereum blockchain network is used for the majority of DeFi projects since it is the first to provide an architecture that allows developers to create such decentralized apps (DApps).
DeFi and other crypto initiatives, in general, use a consensus mechanism to safely offer their services and benefits to consumers. The three most popular consensus mechanisms are Proof of Work, Proof of Stake, and the current favorite and my favorite as well - Proof of Reputation.
This is what I've found online, a great explanation with great examples involving several DeFi platforms, but I will single out one part of the text as it talks about my favorite consensus mechanism PoR as I wrote earlier:
"To illustrate the working of PoR, Kaiba DeFiβs applications can be observed. These applications manage to provide superior speed and significantly lower fees than counterparts thanks to their underlying Proof of Reputation system. As an example, take KaibaEx, the projectβs Decentralized Exchange (DEX), which offers up to 20% less network fees than other exchanges, such as Uniswap, and facilitates fully commission-free trades, which is unmatched within the industry. Another great instance would be trading KAIBA, Kaiba Defiβs native crypto token, which, thanks to PoR and their contract optimization, can be 60% cheaper to transact with than other comparable ERC-20 tokens."
I will leave you the link here and tell me, which one of these popular consensus mechanisms is your fav one?
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