How NFT, DeFi and Web 3.0 complement each other.

While the blockchain itself provides the technical architecture to facilitate transactions, ownership and trust in the network, in value-linked digitization, the tokenization of assets is the general trend. Tokenization is the process of converting assets and equity into a digital form or token on a blockchain network.

Distinguishing between cryptocurrencies and tokenized assets is important for understanding exchange instruments, valuation models, and homogenization across various value networks that are emerging and pose interoperability challenges. This is not only a technical challenge, but also a commercial challenge around fair trade.

Asset tokenization enables a business model that facilitates fractional ownership, the ability to own large instances of an asset.

Due to digital assets and their homogenization in the blockchain ecosystem, various valuation drivers arise. include:

The official social media account of the University of the Philippines was attacked and the NFT airdrop false information was released: On April 26, the official social media account of the University of the Philippines (University of the Philippines), the largest national comprehensive university in the Philippines, was attacked. Hackers used the account to publish NFT airdrop false information, the attacker renamed the account to takashi murakami (the name of a Japanese artist) and posted an airdrop information about Murakami Flower Seeds NFT. The University of the Philippines subsequently issued a statement confirming the matter. Although the content-zce related to the false NFT airdrop has been deleted, the account has not yet been restored. [2022/4/26 5:12:32]

Tokens based on a cryptoeconomic model driven by supply and demand and network utility;

Italian luxury shoe brand Giuseppe Zanotti released 1,000 COBRAS sneakers NFT: Jinse Finance reported that Italian luxury shoe brand Giuseppe Zanotti officially entered the encryption market and reached cooperation with NFT communities DeadFellaz and neuno Marketplace, and held a three-day event on Decentraland Metaverse fashion event. In addition, Giuseppe Zanotti also issued 1,000 NFTs for its well-known sports shoe brand COBRAS. Users of this NFT can not only use digital sports shoes to dress up virtual avatars to express their personality, but also get a 20% discount when purchasing physical sports shoes. [2022/3/26 14:19:08]

Non-fungible tokens (NFTs) have intrinsic value such as identity verification, diplomas, and medical records. Essentially, these tokens are simple proofs of existence, authenticity and ownership of digital assets;

The KAKA chain game mixed blind box will be launched on Binance NFT soon: According to the official news of the KAKA NFT WORLD Metaverse platform, KAKA will be listed on the Binance NFT section at 19:00 on August 25 (UTC+8), and the KAKA chain game mixed blind box will be released. This new blind box contains four different grades of NFT, including KAKA-Rabbit, KAKA SGF, KAKA China and KAKA Troland Pack. Except for KAKA-Rabbit NFT, all NFT cards will support KAKA’s official 20% off repurchase function and two-player gameplay. [2021/8/20 22:26:34]

A fungible token that is valued on various bases, such as the sum of economic activity in the network (cryptocurrency), its utility (smart contracts and transaction network processing), anchor value (stable currency and security tokens), etc.

MilkTea officially landed in the LBank NFT zone: According to official news, LBank has launched the MilkTea/USDT trading pair in the NFT trading zone at 20:00 today, and the current price is about 5 USDT/piece.

MilkTea is an interesting social experiment, and the token itself has no value. Users who hold MilkTea can receive an airdrop of LBank milk tea with MilkTea on September 25 every year, and the validity period is unlimited. A total of 13,824 people in MilkTea have successfully received the airdrop, so the actual number of issued is 13,824, which will be on the chain on October 12. [2020/9/30]

In this article, I will discuss the rapid rise of NFT after the popularity of DeFi. NFT has established a new business model with amazing innovation and has a global market. All of this is powered by the basic structure of decentralized tokens and wallets. Although NFT can be described as an encrypted token with some intrinsic value to the holder or the art and collectibles market, the development of NFT also heralds the arrival of a larger token revolution, which will not only promote Innovation and development at scale. Web 3.0 protocols grow and also test out DeFi solutions and its ability to intersect with all token types and provide platforms and trading tools.

The first two generations of network protocols were primarily about disseminating information and connecting people, they drove a huge increase in information and collaboration, and did wonders to connect the world. However, these web protocols were never designed to move anything of value. At the same time, as the Web 2.0 era took hold, vulnerabilities such as “fake news” and asset movement through a series of intermediaries emerged. The system poses a threat to business and financial infrastructure and may destabilize the system.

And Web 3.0 promises to protect all the information, truth and digital assets we hold dear, both homogeneous and non-homogeneous. Web 2.0 is driven by social, mobile, and cloud technologies, while Web 3.0 is mainly built on three new levels of technological innovation, namely edge computing, decentralized data networks, and artificial intelligence.

The development of NFTs not only empowers artists, skilled professionals, and entrepreneurs to innovate in the form of tokens, but also drives the democratization of the platform, which is one of the promises of blockchain technology. The underlying infrastructure includes decentralized storage technology, efficient consensus protocols, off-chain computing, and oracle networks to connect and verify existing systems.

Collectively, Web 3.0 technologies envision a connected, trustless, and accountable web that delivers value efficiently, creating an infrastructure for things of value. NFTs represent both transferable entities and non-transferable tokens that we evaluate. The latter include things like our identification cards, medical records, and passports, which represent our identities and allow us to participate in the digital economy with our own unique digital identities.

DeFi is a revolution in the field of blockchain applications, which uses decentralized network technology to promote the transformation of old financial products into trustless and transparent protocols, facilitating the creation and dissemination of digital value, and requires almost no intermediaries. Due to new synergies and co-creation through new digital interaction and value exchange mechanisms, blockchain technology lays the foundation for a trusted digital transaction network, as a disintermediation platform, it drives the growth of the market and secondary market .

Although DeFi's goal is to democratize finance, NFTs test DeFi's resolve by providing a competitive and inclusive asset class, as well as providing a medium of exchange, homogeneity of other homogeneous asset classes, and a transition to traditional illiquidity. Markets provide access to liquidity.

Asset classes generated by DeFi protocols and NFTs take advantage of fractional ownership of assets, blur the boundaries between asset classes, and use structures like digital wallets as storage for asset classes. And all are supported by the underlying Web 3.0 layers, which provide security and availability through decentralization, trust and immutability through consensus, and extend these principles to basic computer infrastructure such as storage and interconnection.

The commercialization of Web 3.0 protocols, manifested as homogeneous utility tokens, further blurs the boundaries of various financial innovation products introduced by DeFi, such as underlying assets and derivatives, which are also tokenized. So while decentralization is the underlying theme, and wallets and tokens are the underlying constructs, the blurred lines between them have deep meaning.

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