The recorded ownership status provided by NFTs has led to some exciting innovations. Given the way NFTs provide an easily accessible ownership history, the value of an asset can be directly affected by its provenance. For example, if a famous art collector purchases a piece of art via an NFT, the mere fact than an… Continue reading Innovations enabled by NFTs
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How an NFT works
NFTs work by storing information that can identify them as unique. They store this information in smart contracts. Smart contracts are sets of instructions written in code and stored on a blockchain. These smart contracts allow for detailed information to be added and permanently tied to an asset. Primarily, NFTs are used to prove digital… Continue reading How an NFT works
Unwrapping NFTs
What you’ll learn What is an NFT How do NFTs work How to earn crypto from investing NFTs How to create your own NFTs NFTs are Non-Fungible Tokens, unique representations of the ownership of assets immutably recorded in blockchains. Early adopters are using them to represent their claim on digital collectables, artwork and many other… Continue reading Unwrapping NFTs
Where Defi is headed next
At the moment, decentralised finance is still tiny compared to the rest of the financial world, but is growing quickly, and its users are predominantly tech-savvy cryptocurrency holders. The core concepts of decentralised finance – open access, transparency, and equality – make it appealing to a huge market, including the unbanked and the hard to… Continue reading Where Defi is headed next
Risks and hazards
Defi is a wonderful invention that many people believe to be the future of finance. Like any new technology, though, decentralised finance comes with risks, both systemic and external. Systemic risk includes the potential for a vulnerability in the smart contract. If the Defi protocol hasn’t been thoroughly tested for bugs, it could be exploited… Continue reading Risks and hazards
What can you do with Defi?
Defi is a means of managing and growing your money. Virtually anything you can do with a digital bank or credit card can be done in Defi. Instead of fiat currency (i.e. the money that’s stored in your bank), Defi uses stablecoins, usually pegged to the US dollar or to a national currency such as… Continue reading What can you do with Defi?
What does Defi look like?
Defi is a subset of the cryptocurrency industry. Most of the underlying technology that powers the crypto-economy can be called decentralised, since that’s a basic characteristic that all blockchains share. The difference with Defi is that it’s focused specifically on utilising this ability to actively manage your wealth, without requiring the permission of anyone, be… Continue reading What does Defi look like?
Earning from DEFI
What you’ll learn What Defi is & what it enables you to do What you need to take advantage of Defi opportunities The language & key terms associated with Defi The risks of interacting with Defi protocols Decentralised finance, or Defi, is a system for providing open access to financial services. This is achieved by… Continue reading Earning from DEFI
How Flash Loan Attacks Work
One of the weaknesses of the current DEFI model is the difficulty of applications built on Smart Contracts getting data from the outside world, most importantly price data. Any application that offers token swaps, for example, needs to know the current exchange rate, so will reference an Oracle, a service that feeds this data, via API,… Continue reading How Flash Loan Attacks Work
The Good & Bad of Flash Loans
There are legitimate reasons why someone would want to utilise a Flash Loan, which would benefit them and the wider DEFI ecosystem. Here’s an example from Aave’s website where a Flash Loan enables the swapping of collateral for a MakerDAO Vault: In this case, the user holds a collateralised ETH position with MakerDAO but wants to swap… Continue reading The Good & Bad of Flash Loans