DeFi has a domino effect with the introduction of NFT and Web 3.0

Decentralized finance (DeFi) has been shining with a fairer internet since the beginning of 2020 and we are on the verge of changing the world. DeFi technology would not be possible without today’s widespread web infrastructure, which represents the tremendous strides we have made in next-level innovation. The third era of the internet has begun with a new economy, new careers, and new business opportunities.

Many experts believe that the rise of DeFi has made non-fungible tokens (NFTs) more liquid so that users can view them as a more realistic investment option. The rise of NFT is further evidence that this financial sector is leading to a more promising and comprehensive development towards the full adoption of Web 3.0. NFTs are raising the bar for the new democratization of the web – one of the many benefits of blockchain technology – while DeFi aims to deliver on the promise of financial democratization.

Connected: How NFTs, DeFi and Web 3.0 come together

DeFi is the catalyst behind the NFT avalanche we’ve seen in the past few months, powered by the ideas and infrastructure of Web 3.0. Billionaire investor Mark Cuban is just one of many to believe in the power and potential of DeFi, compare its growth to the early days of the internet, and enjoy all of its untapped potential.

While DeFi undeniably helped fuel the recent boom in NFTs, the relationship between the two is certainly symbiotic. NFTs help open up new collateral options in DeFi lending and can even represent more complex financial products. In addition, there are projects such as Centrifuge, a decentralized asset finance protocol, or Aavegotchi, a DeFi-enabled crypto collecting game that allows players to set NFT avatars with aTokens that generate interest and similarity and NFT.

Connected: NFT enables gamers to have digital property rights

Users looking for transparent, fair and improved open source solutions can slowly but surely create a domino effect that leads to the full adoption of Web 3.0. While the next era of the Internet is not yet determined, NFTs, encryption, and other next level developments coupled with the growing need for more decentralized solutions have opened the door to a better and stronger web ecosystem that can grow with the industry.

Connected: The DeFi snowball turns into a Web 3.0 avalanche

A solution-oriented web

As the DeFi rollout continues to roll out globally, challenging traditional finance, key use cases are essential for this new web era to thrive. The next generation of the web is more geared towards everyday use and less towards technical infrastructure, creating an atmosphere that challenges and changes human interaction as we know it.

The decentralized web will build countless global applications and add value to everyone, from teachers to doctors to fashion entrepreneurs and more. Large companies like Microsoft, Sony, and Samsung have adopted blockchain, machine learning, and other Web 3.0 technologies and seen their value in building a more scalable real-time solution.

Connected: Can you use the new decentralized Internet or Web 3.0?

But how do we get there?

It was necessary to close the gap between Web 2.0 and Web 3.0 in order to create a more open source, more flexible and more censorship-resistant Internet. DeFi continues to demonstrate its resilience in financial markets as Total Value Locked (TVL) in smart contracts remains above $ 111 billion, demonstrating wider market confidence in decentralized financial solutions, although there are some downward trends elsewhere.

Connected: DeFi shows resilience during the market crises in March 2020 and May 2021

Web 3.0 is a global movement, as evidenced by the strong momentum surrounding DeFi’s digital assets. The price of Ether (ETH) is up more than 1,000% year over year, showing that Web 3.0 products have the potential to replicate traditional financial products and achieve similar success, but in a decentralized manner. It is a surefire thing that one day these apps will completely outperform banks, Wall Street trading firms, and brokerage firms.

While DeFi is driving the whole of Web 3.0, a seamless and efficient integration process is required. Moving from one web version to the next requires wider adoption of DeFi in everyday businesses to really bolster the learning curve that comes with new and improved features. It is important that companies provide financial support and technical expertise to make our new internet brilliant and usable for all.

Domino effect

The wait is over: Web 3.0 is no longer just an idea for the future, it is also about quick accessibility. While there is still a lot to be done before these new technologies become part of everyday life, decentralized funding has paved a clear path for a new generation of great mindsets: smarter, better, and better, and tests the limits of mainstream adoption. NFT is the most famous use case right now, and the DeFi movement can create tools that eliminate the need for a middleman in any sector and lay the groundwork for opportunities, endless in DeFi and more.

As more centralized applications, institutions, and traditional financial markets adopt blockchain technology and other cutting-edge applications, all miners in the industry will follow suit. As we know the web is dying and that’s not a bad thing. The DeFi domino effect will emerge over the course of 2021, leading to widespread adoption of Web 3.0 – and cryptocurrencies will lead the way.