Bull Market with Filecoin, NFT and DeFi

Who set off the bull market with Filecoin, NFT, and DeFi?

From defi to NFT, the currency circle has never lacked hot spots. Speaking of this NFT explosion, it was officially detonated by pineapple memes, just as the compound detonated defi.

 

Incentive Mechanism of Liquidity Mining

However, with the incentive mechanism of “liquidity mining”, compound funds have become a dark horse in the defi field. Since then, more and more projects have launched similar “liquidity mining”, and Defu’s total market value has also exceeded the $10.8 billion mark.

In mid-April this year, Telford’s total market value was only $1 billion. It can be seen how fast the development of defi has been in the past five months.

 

The popularity of memes is more like irony. Its origin is a joke.

 

In fact, memes are digging air out of the air. It was born because the developer Jordan Lyle said on the fake Devi’s Twitter that they are a defi-meme project that can be launched within 5 minutes.

 

However, this joking Weibo was sent by someone deliberately, and it was really developed. Therefore, the meme is not a joke, but a symbol. It launched uniswap and even soared 900 times on the day of its release.

 

 

What exactly is NFT issued by erc-721 standard?

NFT is the abbreviation of non-functional token, which means non-homogeneous token. Mainly issued by the erc-721 standard.

NFT is a concept relative to homogeneous tokens. Tokens generated based on the erc-20 standard are usually called functional tokens, or NT for short, that is, homogenous tokens, also known as exchangeable tokens. Its main feature is that there is no difference between tokens, which can be exchanged at will, or split and integrated. For example, BTC, Eth, and other cryptocurrencies are all homogenous tokens (NT). There is essentially no difference between each BTC, they can be exchanged and divided.

 

The main characteristics of non-functional translation are uniqueness and indivisibility. Every non-homogeneous token is different. It is unique and irreplaceable.

In addition, the smallest unit of NFT is 1, which cannot be split. This means that your NFT cannot be exchanged with other people’s NFTs, nor can it be divided into 0.1 NFTs.

 

For the current blockchain industry, NFT is actually very few things. The head exchange only regards non-financial transactions as a possible future development direction, and will not invest a lot of resources like the popular defi.

 

What is the difficulty in NFT development?

The difficulty of NFT development lies not in technology, but in market promotion. At present, it is no problem to realize NFT through technology.

The key is that the market is too small and the competition is not fierce. Therefore, the difficulty in the development of NFT is actually ecological application.

To make a good NFT application, the development cost must be relatively high. And because the NFT audience is too small, the benefits of the project cannot cover the development cost.

File coin

 

In general, the possibility of NFT detonating a new round of bull market is too small.

Even the outbreak of defi cannot detonate the bull market and go to the masses. Although defi is very popular, only a few people actually use its products. Only when we truly go to the public can we create more value. Currently, defi needs to be made public.

On the one hand, the operation process of dif products is complicated, and the user experience it brings cannot be compared with Internet products. On the other hand, the Defa market is full of counterfeit currencies, high natural gas costs, and loopholes in smart contracts.

 

In order to promote the real arrival of the bull market, we still need to see the leading project in the field of distributed storage-filecoin.

 

As a blockchain project based on the IPFs protocol, filecoin was built by the protocol laboratory for more than three years, aiming to build a safer, more open, and more economical distributed storage network.

 

Filecoin’s distributed storage network not only makes up for the lack of security and privacy of centralized storage. This also provides a new solution for the development of blockchain in the industry. For example, traceability projects can store traceability data in the filecoin network through smart contracts, and public chain projects can also achieve interoperability with filecoin network data through a cross-chain approach to promote commercial implementation.

 

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