What Is Canto Blockchain? A Deep Dive into Canto and Its DeFi Ecosystem

This blog below continues to describe Canto Blockchain and its DeFi system, which you will consider below.

What is Canto Blockchain?

Canto is a decentralized application development platform, users can create dApps or Decentralized Finance protocols. It is proof-of-stake blockchain. PoS validators are competitively chosen to produce new blocks and validate transactions based on how much of Canto's native cryptocurrency, CTN, they own.

What problem does Canto solve? Canto solves some problems in the DeFi space:

1. Scalability : its PoS consensus mechanism and sharding technology could process hundreds of thousands of transactions per second; hence, making it scalable enough for DeFi applications.
2. Security: decentralized in nature and uses cryptographic techniques for safety on the blockchain and data it stores.
3. Centralization: Since the random selection of validators in Canto for the verification process of the PoS consensus mechanism, the risk of centralization is kept on its lowest minimum while, at the same time, the total network gets maximized to be really decentralized.

**What is Canto DeFi Ecosystem?

Canto DeFi Ecosystem refers to decentralized applications and protocols that are supposed to operate on top of the Canto blockchain. Among them are Lending protocols. Lending as well as borrowing forms of CTN gives way to the formation of a decentralized lending market with Allowe, Peso, among other lending protocols. Yield farming. With the Yield farming protocols developed by Canto, one is able to stake yields from given liquidity on decentralized exchanges and lending protocols. Decentralized exchanges. The decentralized exchanges such as xBOL by Canto among other decentralized exchanges allow the users trading of their CTN, and other assets on a blockchain. 4. Predictive markets: Users under the Predictive Market Protocol of Canto predict outcomes for events and gain reward in line with accuracy in predicting. Why Canto is used? Canto is used due to the following; 1. Fast Adoption Rate: In the case of the Canto DeFi ecosystem, with respect to applications and protocols, they are constantly increasing in growth. 2. Security: The distributed and cryptographic mechanisms of Canto ensure all security factors associated with the blockchain except those that are saved data on it. 3. Scality: The PoS mechanism of consensus and the sharding technology made possible through Canto allows for thousands of transactions to be processed per second hence quali