What is NFT?
NFT or non-fungible tokens are essentially buying a digital form of some scarce asset like art or even literature that you essentially own the only copy of. Many brands and artists are coming up with their NFTs for promotion.
Well, non-fungible means it is unique. Just like your yu-gi-oh duel monster card is non-fungible, you trade a black magician with blue eyes white dragon. Where your dollar bill is fungible you trade a dollar for dollar. Hope you are getting a little.
NFTs can be anything an image, a clip, a document, or an AI made you. Well, today hype is over digital images.
Even the tweets can be NFTs, in fact the founder of tweeter sold his tweet for a little less than 3 million USD.
If you are an artist then NFTs is a great way to show and sell your art which would find no place to sell otherwise. If someone notices your art, you could be the next millionaire.
Well I too, being motivated by NFTS, made a few digital arts. Hope one day could find a buyer for it.
What is DeFi?
DeFi stands for decentralized finance. It means Decentralizing the finance i.e the job done by the bank will be done by the user and there will be no middle man. Let's take the example of Amazon, It takes a product from the manufacturer and selling them to users cutting all possible middle man in between to reduce the cost of the item. A similar thing is DeFi doing, It is removing middle man from borrower and lender. Well, this is the job of the bank. They pay almost 0 in deposit and lend money to the borrower. But we have seen how miserably these banks fail once in a while then the taxpayer's money is used to rescue them. DeFi is taking these banks out so now lenders can lend money to borrowers and could earn of that money.
Lending is one example, Defi applications are used for exchanges, wrapped BTC etc. The main motive is to remove the middle man.
Well It is interesting that both these technologies mainly work on the Ethereum Blockchain, which is the most user-friendly crypto