DeFi, NFT, Web3 — Simply explained

05.08.2024

The world of cryptocurrencies is evolving beyond just Bitcoin and Ethereum. New technologies are emerging that everyone talks about, but few truly understand. Let’s break down in simple terms what DeFi, NFT, and Web3 are — and why they matter. DeFi — Decentralized FinanceDeFi (Decentralized Finance) is financial services without banks or middlemen. Everything runs on smart contracts — programs that live on the blockchain.With DeFi, you can:exchange cryptocurrencies;borrow and lend funds;earn passive income (staking, farming). It all works automatically, transparently, and without bank approval. NFT — Digital UniquenessNFT (Non-Fungible Token) is a digital token that proves ownership of a unique digital item. It can be:artwork;music;in-game items;even memes! Each NFT is one-of-a-kind. While all bitcoins are equal, every NFT is like a fingerprint — no two are the same. Web3 — The Next-Gen InternetWeb3 is the concept of an internet where power and data belong to users, not corporations. It’s the next stage of the web, built on blockchain, decentralization, and smart contracts. In Web3:you control your own data;you can earn by participating in projects;your crypto wallet acts like a digital passport.It’s a step toward a freer and more secure internet.