lockchain, the internet of money, makes planetary sense with NFTs and DeFi
NFTs (non-fungible tokens) and decentralized finance (DeFi), both enabled by blockchain technology, could lead to a revolution in the way we understand the relationship between online and offline, material and virtual. The ability of NFT Development company to convert any physical or digital asset into digital assets, ready to trade on the markets, could mean a major transformation of the global financial system.
These days we are seeing how goods that represent works of art, music, photos, houses, concerts, sneakers, video games or luxury watches are revalued in secondary markets. It is as if, suddenly, the definition that we had been hearing for years: blockchain is the internet of money, took on a planetary meaning. Blockchain is presented to us as the great machine for making money, for monetizing everything. Casey and Vigna said that Blockchain is the truth machine. At the moment, it is the great monetizing machine. It converts the solid, the liquid and the gaseous, if that is how we want to conceive of art itself, into money.
Blockchain, NFTs and DeFi
It is the merger of NFTs with the so-called decentralized finances (DeFi) that will lead the way to this new financial system. For example, on Uniswap, the largest decentralized DeFi exchange, you can now trade NFTs. But there are also other exchanges where you can trade or borrow using NFTs as a deposit. To give an example of the volume of money that is handled in these decentralized exchange houses, it should be noted that, in February alone, the DEX moved more than 73,000 million dollars, 10,000 more than the previous month.
Why is the media not exploring the technology of NFTs?
At the moment, it seems unquestionable that the technology of NFTs has allowed us to recover the property value of Internet content. A value that the internet reduced to zero by facilitating the ability to copy to infinity. And this is not trivial. Google or Facebook have used the digital content that the world has poured into the network as raw material to become the technological giants that they are today. Perhaps, in the not too distant future, when digital content circulates through the network converted into more evolved NFTs, each of us will receive a micropayment for its use. As is already the case with artists who convert their works into NFTs and receive royalties every time the work is resold in secondary markets. Somehow,
Connecting DeFi with the real economy
The speed with which everything is happening is incredible. These days we have heard that NFTs have superseded DeFi in popularity, the buzzword in 2020 in the crypto space. In turn, DeFi displaced the ICOs of 2017 and 2018 as a crypto trend. With the perspective that time gives, all these movements add up. They have been necessary to get here. To create, you have to innovate, and to innovate, you have to make many mistakes. After all, the crypto industry is only 12 years old.
New York Times experiments with blockchain and auctions its first item on NFT
Another important aspect is that the emergence of NFTs in the so-called decentralized finance (DeFi) could put an end to the lack of connection of DeFi with the real economy, one of the main criticisms that DeFi has always received. The merger of DeFi and NFTs will allow the creation of new economies and new markets in the real economy, but also in the virtual economy. As is already the case in the metaverses, which are the virtual worlds where the real world is replicated and where humans act with avatars. The economy that thrives in the metaverses is so real that some of its digital lands are priced much higher than the real ones. The avatareconomy is also represented in NFTs and is also traded on the markets.
NFTs to obtain loans
Last December, Carlos Gómez, one of the speakers who participated in the «I Forum of Journalism and Cultural and Creative Industries in Blockchain», organized by the Blockchain Observatory, recounted how he could collateralize the NFT that he received as payment for his participation in the event to obtain a loan. The platform that Carlos found to use his NFT as collateral, to request a credit in the form of DAI, was NFTfi . This platform is defined as a simple market for collateralized loans in NFTs. NFTi invites users to place their NFT Genrator assets as collateral to obtain loans or offer loans to other users in their non-fungible tokens.
Other platforms, such as NIFTEX , allow fractional ownership of NFTs. Thus, instead of buying an entire work, fractions of it can be purchased and exchanged on Uniswap. NIFTEX is constantly updated and recently released a new version with new tools to interact with much lower gas costs.
programmable money
Using NFTs as representations of digital or physical assets to obtain financing is something totally new in the financial markets. NFTs are one more piece of the complex system of interactions with which DeFi is built. A puzzle known as “money legos”, alluding to the popular children’s construction game. Or as “programmable money”, by smart contracts built on the blockchain.
A few days ago, VeryNifty, a decentralized protocol also announced flash loans on its NFT20 trading platform. In it, users can request this type of credit with up to 18,000 NFTs. Flash loans allow you to obtain money without guarantees, but with the obligation to return it in the same transaction. The Aave company, which was the one who popularized them, has come to grant one of 200 million dollars.
NFT and DeFi tokens to reinvent the events industry with blockchain Recently, NFT Group also launched USDT-NFT to trade on Uniswap. The launch marks an important step for investors who have been using centralized platforms to gain exposure to NFTs, the company says.
