The world financial system is gradually moving towards digitalisation and cryptocurrency is forefronting as a globally acceptable medium of exchange. The crypto space have evolved overtime from being just a means of transaction to becoming a home to various opportunities and it is no doubt that DeFi, DApps and Collectibles are leading the race.
This new developments are still stage to alot of people who want to maximise this opportunities but don’t understand the various ways they can do so. This article is designed to be a beginners guide into interacting with DeFi, DApps and Collectibles and how to leverage on them on Binance smart chain.
•WHAT IS DeFi ?
Decentralised Finance or DeFi is a system that allows users to access or utilise financial services such as borrowing, lending and trading without anyone central entity.
Picture:CoinFalcon Learn — Guide to Decentralized Finance (DeFi) Part One | by CoinFalcon | CoinFalcon | Medium
With the continuous growth in the DeFi ecosystem it would be impossible to cover everything about DeFi in this article, this is why we would talk about Decentralised Exchange (DEX) one of the leading categories of DeFi.
•Decentralised Exchange (DEX) is one of the major DeFi categories. DEX allows users to trade or invest their coins without having to give up custody or store them on centralised exchanges.
Trust wallet users can access Binance DEX directly from the exchange section of their Trust wallet app and trade or swap one coin for another without having to give up their coins or personally information to any exchange. This is very important to many people as one of the major issues of centralised financial systems Bitcoin and cryptocurrency seek to solve is privacy.
•WHAT IS DAPPS?
Decentralised Application (DApps) are applications or interface used to interact directly with the blockchain through smart contract. Although DApps may look and behave like regular web application they differ because DApps interact with blockchain applications like DeFi directly from users wallet.
Picture:https://exchange.pancakeswap.finance
Users can connect to various DApps on smart chain like pancakeswap directly from the DApp browser on Trust wallet to carry out blockchain activities directly from their wallet.
•WHAT ARE COLLECTIBLES?
Crypto Collectibles or Non Fungible Tokens (NFTs) are a special type of tokens that represents either an entirely digital asset or a tokenised version of a real world asset like gold. NFTs are created with each token unique and limited in quantity.
Picture:https://en.m.wikipedia.org/wiki/File:NFT_Icon.png
Unlike Bitcoin and other crypto currency aswell as fiat, NFTs are not interchangeable thus living up to it name “non fungible” and bringing the cryptographic world to an entirely new realm. NTFs are one of the key building blocks of a new blockchain powered ecosystem.
CONCLUSION
It is no doubt that the cryptocurrency world is rapidly evolving from what it was a decade ago to a much bigger concept, creating a wide range of opportunities. DeFi, DApps and Collectibles are currently in the forefront of this digital evolution and irrespective of their progress so far I still think that we are yet to see the best of them.