DeFi & SocialFi & NFT

(Decentralized Finance) DeFi

Decentralized Finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes bank and institutional control over money, financial products and financial services.

For many consumers, some of the main attractions of DeFi are:

◎ Elimination of fees charged by banks and other financial companies for using their services;

◎ Safe storage of money and other forms of value in secure non-custodial digital wallets;

◎ Very low entry barrier: anyone with an internet connection can use it without approval;

◎ Faster transaction speed: you can transfer funds in seconds and minutes;

Decentralized finance enables individuals, merchants, and businesses to conduct financial transactions using emerging technologies, thereby eliminating the need for intermediaries. This is accomplished through the use of a peer-to-peer financial network that employs security protocols, connectivity, and advance software and hardwares. Borrow and trade using software that records and verifies financial transactions in a distributed financial database from anywhere you have an internet connection. A distributed database collects and aggregates data from all users and verifies it using a consensus mechanism; it is accessible from multiple locations. This technology is used in decentralized finance to eliminate the centralized financial model and make financial services available to anyone, anywhere, regardless of location. Through personal wallets and trading services tailored to individuals, DeFi applications give users more control over their funds.

How does DeFi function?

Decentralized finance employs the same blockchain technology as cryptocurrencies. A blockchain is a distributed and secure ledger or database. dApps are applications that process transactions and run the blockchain.

Transactions in a blockchain are recorded in blocks, which are then verified by other users. If these validators agree to the transaction, the block is closed and encrypted, and a new block is created with information from the previous block. The information in each in-progress block "links" these blocks together, giving rise to the name blockchain. Previous block information cannot be changed without affecting subsequent blocks, and thus the blockchain cannot be changed. This concept, along with other security protocols, ensures the blockchain's security.

(Social + Finance) SocialFi

SocialFi is an acronym for social finance. SocialFi is a combination of the words social and finance. Users can monetize their "social influence" by creating content, participating in communities, NFT casting, and interacting with other users on SocialFi. Earn money by communicating, watching videos, and so on. However, unlike Facebook, YouTube, and other Web 2 social networks, SocialFi can offer better privacy and security for user profiles, and it even expects to distribute advertising revenue more equitably and provide a better user experience.

Web 2 social networking platforms such as Facebook, Youtube, Instagram, and others have a large number of users and enormous influence around the world, but these platforms have the following structural problems and are criticized by others, so the concept of SocialFi was born.

1. Excessive review authority and ambiguous standards

Platform managers have the authority to delete creators' content and even block accounts at any time, but their review standards are frequently opaque, and user complaints are frequently reported.

2. Algorithmic dictatorship, data security breaches

Another annoyance that degrades the user experience is the platform's algorithm. Perhaps, in order to increase traffic or advertising revenue, the platform preferentially pushes advertising content through algorithms and excludes sensitive content in their eyes, transforming into a kind of dictatorship that shifts direction. Furthermore, users' personal data is frequently tracked or suspected of being leaked.

3. Creators are not being fairly compensated.

We know that the global digital advertising market is still expanding, but the advertising revenue received by many content creators via the platform is declining, or there is no fair mechanism in place. As a result, manufacturers are primarily responsible for allocating resources that can truly benefit high-quality creators.

The management and discourse rights of social platforms are returned to users through blockchain-based technologies such as DAO governance and the transparency of smart contracts, ending algorithmic hegemony, tokenizing creators' influence, and providing a fairer platform for revenue distribution.

(Non-Fungible Token) NFT

Non-fungible Tokens (NFTs) are blockchain-based cryptographic assets with unique identifiers and metadata that distinguish them from one another.

They cannot be traded or exchanged for equivalents, unlike cryptocurrencies. This is in contrast to fungible tokens like cryptocurrencies, which are identical to one another and thus serve as a medium for commercial transactions.

NFTs alter the crypto paradigm by making each token distinct and non-fungible, making it impossible for two non-fungible tokens to be identical. They are digital representations of assets, similar to digital passports, because each token has a unique, non-transferable identity that distinguishes it from others. They are also extensible, which means you can "breed" a third unique NFT by combining one NFT with another.