The standard Centralized Finance (CeFi) system suffers from many issues together with these of entry, effectivity, time, and value. However it has full assist for KYC, AML & CFT and presents excessive grievance redressal mechanisms & shopper safety.

Decentralized Finance (DeFi) is an umbrella time period for monetary purposes powered by public blockchains. DeFi was supposed to resolve the issues of CeFi, but it surely has created a brand new set of issues, together with:

1. Close to-zero assist for KYC, AML & CFT
2. Close to-zero grievance redressal & shopper safety
3. Unpredictable charges

Hybrid Finance (HyFi) combines the very best of centralized & decentralized finance.

HyFi = (CeFi + DeFi)∞

A Hybrid Finance Blockchain ought to have:

1. Full assist for KYC, AML, and CFT.
2. Strong grievance redressal.
3. Robust Client Safety mechanism.
4. Assist for information privateness and encrypted peer-to-peer connections.
5. Regulatory compliance with right-to-be-forgotten rules.
6. Assist for role-based asset controls for enterprise, compliance, and rules.
7. Assist for freezing or quarantining of accounts and belongings pending investigation.
8. Predictable & low transaction charges
9. Assist for versatile asset metadata.
10. Assist for atomic multi-asset funds.
11. Assist for multi-way atomic asset exchanges.
12. Assist for exterior personal keys, multisignatures, and chilly nodes.
13. Nodes operated by verified entities
14. Unified JSON-RPC API for integration with purposes.