Yellow Network aims to connect traditional finance (TradFi) and decentralized finance (DeFi) through an innovative approach based on the use of state channels.
What Is Yellow Network?
Yellow Network is a Layer 3 solution that uses state channels to offer peer-to-peer (P2P) trading. This allows overcoming traditional barriers between TradFi and DeFi. The project team emphasizes that their smart contracts provide a secure environment for P2P trading, eliminating risks similar to those existing on traditional exchanges.
Blockchain Challenges and Their Solutions
Yellow Network targets to overcome key issues in blockchain technology known as the blockchain trilemma: scalability, security, and decentralization. Key issues include: 1. Scalability — fragmented ecosystems impede interoperability. 2. Security — bridges used for interoperability are prone to attacks. 3. Decentralization — not all aspects of DeFi are truly decentralized.
The $YELLOW Token and Its Uses
$YELLOW token is a core component of the Yellow Network ecosystem and will launch shortly. Key applications for the token include payment of transaction fees, use as collateral insurance, and the ability to delegate $YELLOW tokens to brokers for passive income generation. The total supply will be 10 billion tokens.
Yellow Network aims to implement innovative solutions for integrating TradFi and DeFi. The use of state channels will enhance privacy, reduce costs, and address liquidity fragmentation across different blockchains.
