Blockchain Basics
NFT (Non-Fungible Token)
NFT (Non-Fungible Token) is different from Fungible Tokens such as BTC and ETH in its unique identification which is non-fungibility, and the minimum unit of NFT is 1 and indivisible. Due to its non-fungible, unique and inalterable characteristics, NFT can be used in fields like digital art and games.
DeFi (Decentralized Finance)
DeFi as opposed to traditional centralized finance, refers to the application of various financial fields established in an open decentralized network. The goal of DeFi is to establish a multi-level financial system recreating and improving the existing financial system based on blockchain technology and crypto asset.
Yield Farming
Yield farming in the field of DeFi refers to the process in which users deposit or borrow specified crypto asset according to their needs and provide liquidity for the fund pool of products to obtain income. The income of the yield farming pool comes from the platform’s token, governance authority, loan or transaction fee sharing, etc.
In short,yield farming is similar to obtaining interest from bank deposits. When users doesn't want to save money in the bank, they can withdraw both principal and interest.
GameFi is Game+DeFi, which is a mode of integration of Game and Finance. In a word, GameFi presents decentralized financial products through games, which gamifies DeFi's rules. Users’ assets can not only be used as equipment or tools in the game, but in turn, users can also get return and rewards when playing the game. The types of GameFi are similar to traditional games, including role-playing, virtual space, simulation battle, multiplayer building, etc.
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