What Are NFTs and How Can They Be Used in Decentralized Finance DEFI Explained

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19 Sep 2021

So what are NFTs all about And how can they be used in decentralized finance You ll find answers to these questions in this video Gitcoin a https 3A 2F 2Fgitcoin co 2Fgrants 2F1158 2Ffinematics-defi-education a Okay so let s start with what NFTs actually are NFTs stand for non-fungible tokens and they are one of the types of cryptographic tokens that can represent ownership of digitally scarce goods such as pieces of art or collectibles Non-fungible is not a very popular word so let s see what it really means In economics fungibility is the characteristic of goods or commodities where each individual unit is interchangeable and indistinguishable from each other Although NFTs can be implemented on any blockchain that supports smart contract programming the most noticeable examples are ERC-721 and ERC-1155 standards on Ethereum When it comes to DeFi NFTs can unlock even more potential for decentralized finance Currently in DeFi the vast majority of DeFi lending protocols are collateralized One of the most interesting ideas is to use NFTs as collateral This means that now you d be able to supply an NFT representing a piece of art digital land or even a tokenised real estate as collateral and borrow money against it Post a https 3A 2F 2Ffinematics com 2Fwhat-are-nfts-and-how-can-they-be-used-in-defi a Follow Finematics on Twitter a https 3A 2F 2Ftwitter com 2Ffinematics a Support Finematics on Patreon and join our Discord community a https 3A 2F 2Fwww patreon com 2Ffinematics a Stay secure with a Ledger hardware wallet 20 off a https 3A 2F 2Fshop ledger com 2F 3Fr 3Db0b220a75e03 a you can use it with Metamask to interact with DeFi protocols Get your crypto Unstoppable Domain a https 3A 2F 2Funstoppabledomains com 2Fr 2F8160a196fa7e4ac a