The advent of Bitcoin brought about a seismic shift in the way we think about money. It introduced a revolutionary new concept for owning and transferring value using only the internet, creating a decentralized, permissionless, neutral, borderless, and censorship-resistant currency that doesn't require a third party to hold or transfer ownership. In essence, Bitcoin was created to provide an alternative to fiat money by offering a clear, transparent, unconfiscatable, and finite monetary system. By doing so, Bitcoin challenges the traditional fiat money system, and empowers individuals to take control of their financial lives.
Ethereum has democratized ownership further by enabling neutral, permissionless, borderless, and censorship-resistant applications like programmable money. This birthed DeFi, revolutionizing traditional financial services.
Decentralized Finance, or DeFi, refers to blockchain-based applications that enable users to manage their financial assets in a decentralized manner. With DeFi, the cryptocurrency domain has moved beyond speculation and is now offering practical solutions for real-world economic problems, without relying on traditional centralized finance (CeFi) systems.
Communities worldwide govern and lead all of these applications through voting and voluntary software development. A substantial portion of these communities are known as Decentralized Autonomous Organizations (DAOs).
The emergence of new DeFi possibilities led to the development of a new gaming industry, called GameFi. It combines gaming and finance by leveraging non-fungible tokens (NFTs) to enable players to own unique digital assets such as characters, lands, avatars, and badges in the form of blockchain.
GameFi is comes from “Game” and “Finance”, and represents the gamification of financial systems to create profit from playing play-and-earn crypto games.
The desire for direct ownership of assets is common to both gamers and bitcoin owners, and NFTs provide a technological solution to this. With NFTs, players can own their unique in-game assets, and there is no need for a third-party to hold their investments, reducing the risk of confiscation.
