Decentralized Finance (DeFi) has been one of the hottest topics in the blockchain space, intensifying the recalibration of the traditional financial system through the inclusion of cryptocurrencies. Defipulse.com stats show that the total-value locked (TVL) in DeFi, as of September 17, 2020, is close to $8.75 billion.
Every time and place where there is a discussion about cryptocurrencies in 2020, DeFi gets mentioned at some point (if it’s not the topic of the whole conversation). Needless to say, DeFi has become the center of attention by being the next big thing in the blockchain and cryptocurrency world.
But blockchain is still a nascent technology and there are a plethora of concepts that Blockchain has to offer. DeFi is certainly not the only big thing in the Blockchain world, at least not anymore. Taking over DeFi as the hottest trend in the Crypto world, Non-Fungible Tokens (NFTs) are the talk of the crypto town.
What are NFTs
Non-fungible tokens are tokens that represent a unique digital asset. While the cryptocurrencies and other fungible assets are interchangeable on the network, NFTs represent non-interchangeable assets which allow the representation of complex data or valuable assets on a decentralized platform.
The Ethereum community developed the ERC-721 token standard for the creation of non-fungible tokens. Through the use of NFTs, developers and crypto enthusiasts have explored a new horizon of a digital, decentralized ecosystem having a wide array of applications such as digital content, games, art work, and more. Most popular applications that have implemented NFTs are Decentraland, CryptoBeasties, Etheremon, and CryptoKitties.
In other words, NFTs are the bridge that we needed to fill the gap and completely represent our real-life use cases and experiences on top of a decentralized platform. Due to all the hype of DeFi, NFTs have been gradually growing in the shadows but now their prominence can be felt through their craze which has taken over even DeFi. But the massive popularity of DeFi is not the only factor responsible for the long-lost interest in NFTs and the applications of NFTs are not the only factor responsible for their unprecedented hype.
In essence, NFTs have been subjected to sheer innovation that has resulted in this turnaround.
The synergy of NFTs with DeFi
NFTs provide a mesmerizing functionality of representing unique digital assets, but what they lack is the ability to create an ecosystem where the end user can relate the digital application to a real-life use case.
This is where the integration of DeFi, more specifically yield farming, has created a new possibility. By allowing users to stake their NFTs and get rewards, a complete ecosystem can be created which can further the financial paradigm-shift towards decentralization with a much wider array of applications.
NFTs and DeFi together in action
An amazing consideration here is that the synergy between NFTs and DeFi is not just a theoretical concept but it has witnessed remarkable implementations. One such implementation is the AnRKey X™ – a gaming platform where DeFi and NFTs meet eSports.
The gaming industry has always been one of the prominent verticals where NFTs are paving the way for innovative and revolutionary upgrades and AnRKey X™ is provisioning that upgrade. Creating a one-of-a-kind gaming ecosystem called Money Sports™ (m$ports™), AnRKey X™ is an Ethereum-based platform that revolves around a native coin – $ANRX.
AnRKey X™ Founder and CEO J.D. Salbego explains, “NFTs allow automated, transparent, and secure transfer of value and ownership p2p. NFTs also allow unique IDs to transfer safely and transparently through whatever “digital party” the asset may transfer too. This is what Web 2.0, even in all its glory days, did not solve. Web 3.0 and NFTs brings us into what I like to call the 3rd stage of innovation — 1. Computer Chip; 2. Web 2.0; and now 3. Blockchain-based Web 3.0.”
Essentially, Money sports is a place where the liquidity needs of the buyers meet their expectations for a superior gaming experience. In other words, it gamifies the liquidity needs of the users. Users take stake their NFTs and earn rewards on the platform and this is just the tip of the iceberg. The platform always ensures that every user gets a fair chance of winning on the platform, implemented through different algorithms. The platform provides a highly competitive environment along with a simplistic user interface which sustains the interest of the user.
Galvanizing blockchain mass adoption, the integration of DeFi with NFTs is a trend that every blockchain and crypto enthusiast should watch out for.