![]() The most popular DeFi protocol for NFTs is Ethereum but other protocols like Solana, Binance Smart Chain, Tezos, and others can store NFT metadata. These protocols allow developers to generate decentralized applications through tokenization and smart contracts. DeFi, or decentralized finance, is a peer-to-peer financial model that uses blockchains as ledgers. As opposed to centralized exchanges, like the NYSE or banks, NFT tech is backed by DeFi. As a comparison, fungible tokens, such as Bitcoin, Ethereum, Solana, etc, store value while NFTs store data on the blockchain. This means that the entire history (creator information, properties, transactions, and smart contracts) of an NFT is backed by a blockchain. A blockchain is a public digital ledger that records transactions on the decentralized web. In other words, non-fungible tokens are one-of-a-kind digital files, and the information, or metadata, that backs the NFT is logged on a blockchain. Non-fungible means that it is unique and can not be replaced or replicated. So, what are non-fungible tokens? NFT Basics The world of NFTs is ever-so-growing and many believe they will be the basis of owning assets online as the Web 3.0 ecosystem expands and adoption increases. They are taking the digital art and collectibles market by storm! In the past year alone, NFTs have become a cultural phenomenon catching the eye of significant crypto enthusiasts, digital art creators, and even celebrities. NFTs are currently exploding in popularity. NFTs Explained: What Are Non-Fungible Tokens? ![]()
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