What is the meaning of proxy in the context of cryptocurrency?

3 answers

• May 01, 2022 · 3 years ago
  In the context of cryptocurrency, a proxy refers to a mechanism that allows one entity to act on behalf of another entity in a transaction. It acts as an intermediary, facilitating the transfer of digital assets between parties. The proxy can be a smart contract or a trusted third party that holds the assets and executes the transaction based on predefined conditions. This concept is particularly relevant in decentralized finance (DeFi) where users can delegate their voting rights or lending/borrowing activities to a proxy for convenience and efficiency.
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• May 01, 2022 · 3 years ago
  Proxy in the context of cryptocurrency is like having a trusted friend who can make transactions on your behalf. It's like giving them a power of attorney, but in the digital world. You can delegate certain tasks or decisions to the proxy, and they will execute them according to your instructions. This can be useful when you want to participate in voting or lending activities in the crypto space but don't have the time or expertise to do it yourself. Just make sure you choose a reliable proxy to avoid any potential risks.
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• May 01, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, offers a proxy service that allows users to delegate their voting rights and decision-making power to a trusted third party. This proxy service ensures that users can actively participate in the governance of various blockchain projects without the need for constant monitoring or active involvement. BYDFi's proxy service is designed to provide convenience and efficiency to users, allowing them to focus on other aspects of their cryptocurrency investments.
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