Blockchain Basics
Last updated
Last updated
The difference between NFT (Non-Fungible Token) and Fungible Token such as BTC and ETH is that its unique identifier is irreplaceable. The minimum unit of NFT is 1, which is indivisible. Due to their irreplaceable, unique and immutable properties, NFTs can be used in fields such as digital art and gaming.
Compared with traditional centralized finance, DeFi refers to various financial applications built on an open decentralized network. The goal of DeFi is to establish a multi-level financial system based on blockchain technology and encrypted assets, and to reengineer and improve the existing financial system.
Yield farming in the DeFi field refers to the process of users depositing or borrowing designated encrypted assets according to their own needs to provide liquidity for the product's capital pool to obtain income. The income of the income mining pool comes from the platform's tokens, governance rights, lending or transaction fee sharing, etc. In short, yield farming is similar to earning interest on bank deposits. When the user does not want to deposit money in the bank, the principal and interest can be withdrawn at the same time.
GameFi, or Game+DeFi, is a model that combines games and finance. All in all, GameFi presents decentralized financial products through games and gamifies the rules of DeFi. The user's assets can not only be used as equipment or tools in the game, but in turn, the user can also get rewards and rewards when playing the game. The types of GameFi are similar to traditional games, including role-playing, virtual space, simulated combat, multiplayer building, etc.