Defi and its Impact in NFT Entertainment Industry
If we had to talk about cryptocurrencies, we can surely agree on the fact that cryptocurrencies have a huge utility value when compared to the traditional form of cryptocurrencies. That’s why the cryptocurrency market cap has been on the rise. This was all possible due to the decentralized, fast, and secure approach of the blockchain.
Many services have been built on the blockchain, to gain the advantages of the technology, which are,
> Decentralized nature
> Fast
> Secure
> Interoperability
> Flexibility
One such service is known as DEFI, which stands for decentralized finance. Decentralized finance, as the name suggests is not looked after by a centralized overlord, like the banks, governments, or any organization for that matter. DeFi is mostly automated and this automaticity is promoted due to the incorporation of smart contracts.
Smart contracts are nothing but similar to contracts between two parties involved in the transaction, except that it works automatically and doesn’t need to be enforced to apply. The terms and conditions of the smart contracts are fixed and can’t be changed in a deal after the deal is signed. Both parties will have to operate according to the terms and conditions of the smart contract.
There are many applications of DeFi, theoretically as much as centralized finance. Like there can be insurance schemes, loan schemes, saving accounts, staking pools, exchanges, financial schemes developed on Defi. Defi has even penetrated the NFT gaming industry.
DeFi Use In NFT Gaming:
NFT sales of the gaming industry were on the rise for some time now. Although the waves of excitement surrounding NFT have calmed down a bit, they are showing signs of returning at the winds of the new and entertaining games. We, at Blue Baikal, is developing Alchemist Republic to enter this sector with a platform that allows users to transform game items into digital assets. Our platform integrates NFT and DeFi and hence has the potential to make the users a good stream of revenue. This is because we are making it easy and fun to acquire NFTs via playing games and most people who are familiar with the traditional financial investment mechanism will have no trouble understanding the stake& earn mechanism on Alchemist Republic — a series of thorough guides for beginners is on the way, too.
Some of the popular ways of earning a passive income through NFT games are,
> Investing in NFTs and/or staking them
> Renting/leasing or selling NFTs
> Investing in the game’s or platform’s governance tokens
NFT industry has been flourishing in entertainment sectors like movies, music, and art in general as the fans can support their creators directly. GameFi is just starting to attract mainstream appeal. Billions of game players worldwide are starting to open their eyes to the tokenization of in-game items and its monetary potential. GameFi is revolutionary not because it’s just another revenue model for game developers but it gives the consumers, the gamers, the means to generate profit for their skills, efforts, and time. GameFi and the Play-to-Earn (P2E) do not seem to be slowing down any time soon and the potential of this specific decentralized industry is only just beginning.
