Decentralized Finance
Introduction
Decentralised Finance in short known as DeFi, where financial transactions are carried by a smart contract without the intervention of third party or intermediary. DeFi plays a huge role in lending & borrowing money from others & helps off setting the risks associated with it.
How does transactions work on Socket ?
On Socket network, a transaction can be peer to peer or inside a shared community from the treasury to the memebers of that community. There is no elections for transactions between two users. If the transaction is initiated from the treasury in a shared community & if it is by that person who has access to the treasury, an election is triggered to all the token holders inside that community.
What is the accounting convention on Socket network ?
On Socket network, every transaction is audited on the basis of Quadruple entry accounting.
Tokens
The whole of Socket network is run on tokens. The source of tokens supply is from Socket foundation. In fact, Socket foundation is the reserve bank of all the tokens which are in circulation on Socket network.
Like we’ve spoken in the previous sections, every community has Token(s). Community tokens consists of votes and no votes. And as for the voting tokens, the votes associated with them are based on each class of tokens. Each token can have between 0 to 10 votes.