basal info

What is DEFi

DeFi, also known as decentralized finance, is a financial application built on the blockchain.

One minute to understand:

There are many financial institutions in the traditional financial industry, such as banks. Banks use currency to earn income through financial activities such as lending and return interest to users.

In DeFi (decentralized finance), financial institutions and their actions are replaced by smart contracts on the blockchain. The advantage is:

1. Reduce the operating costs of financial institutions and return more benefits to users;

2. The contract is transparent and all operations can be checked. Reduce the risk of centralization.

What is NFT

NFT stands for non-fungible token, which is indivisible, irreplaceable, and unique.

NFT can be used in games by virtue of its collection attributes and easy transactions, allowing virtual items to have a longer lifespan, higher appreciation space, stronger playability, and wider circulation.

One minute to understand:

If NFT is understood as game props, let's take a look at the difference between it and traditional games:

In traditional games, the equipment you purchased may be lost due to account closure, service suspension, and other reasons. Otherwise, as the game publisher lowers the acquisition threshold, the equipment price may decrease;

In blockchain games, every NFT is permanent and unique, and no one can change its information and ownership. Prices are only affected by the market.

What is GameFi

GameFi, also known as "gamification finance", refers to a new type of gamification business under the integration of DeFi+NFT. Present financial products in the form of games and gamify DeFi rules;

Some analysts believe that NFT introduces differentiated assets based on scarcity into DeFi, and DeFi also gives NFT commercial value through financial means;

Some cross-border applications of DeFi have shown great potential, especially projects combined with NFT.

One minute to understand:

From finance:

In traditional finance, users need to spend a lot of time learning relevant information. A certain amount of early investment is required, and the operation process is cumbersome. In addition, risks and returns are easily induced by financial institutions;

The advantage of GameFi lies in the integration of financial attributes into the blockchain and games, which reduces the learning threshold of users and increases users’ willingness to participate;

On the other hand, all risks and benefits are open and transparent on the chain.

From the game:

The use of NFT in GameFi can enhance the interoperability between games and solve the problems of rapid game life decay and player loss in the traditional game industry;