Crypto Use Cases: DeFi, Gaming and More
Cryptocurrency is an old topic but remains a discussion topic as its narrative evolves at a scorching pace. The trends and evolution are incredibly rapid, and already the platform has passed through several significant phases. However, it still isn’t widely adopted. One of its reasons can be the complex concept of these developments, namely GameFi, DeFi, and NFTs. Let us try to know them.
DeFi
Short for decentralized finance, DeFi was designed to cover varied financial services out on decentralized blockchains through coded programs set to run on pre-conditions. These smart contracts would work as the middleman in traditional financing systems.
The concept had a particular goal: to take control from intermediary centralized financial institutions (like banks) and give equal chances to developing markets and low-income nations. A Wall Street Dealer and a Cambodian farmer would have equal access to financial services. In essence, it was born with the Ethereum blockchain in 2015.
GameFi
The word is an amalgamation of Gaming and Finance. The virtual games offered in-game coins for the gamer to buy, whose proceeds went to the game studios or developers. These coins had only bragging value, but with DeFi, the scenes are changing. In some crypto games, the gamer has to own a specific in-game currency to proceed. Gaming guilds now invest a significant amount at the start and rent the in-game assets to these gamers, which returns a percentage of their in-game earnings.
NFTs
Non-fungible tokens or NFTs are associated with any digital media. Essentially, they are data units stored on a blockchain to which one can claim or assign ownership. The ownership of NFTs is traceable on open-source, public ledgers like the Ethereum blockchain. These data chains are non-interchangeable and cannot be replicated. It allows the owners to have exclusive rights to one or more NFTs and increases their value. The practice of Crypto Trading with multi-billion dollar NFTs is now daily news but still excellent.
In conclusion
The spread and acceptance of crypto are still not widespread, mostly because people still have to understand the underlying concepts. However, the use cases are slowly enticing the new users towards its applicability, ease of use, and, most notably, the unencumbered and unbiased access to financial methods. Among the different use cases, GameFi is comparatively more popular to date.