Decentralized finance, or DeFi, manages financial transactions via the use of bitcoin and blockchain technology. DeFi’s mission is to democratize finance by dismantling historical, centralized institutions and replacing them with peer-to-peer connections capable of providing a broad range of financial services, from common banking, loans, and mortgages to complex contractual interactions and assets trading.
Blockchain and cryptocurrency are the foundational technologies for decentralized finance. When you make a transaction in your traditional checking account, the record is kept in a private ledger—your banking transaction history—that is owned and controlled by a huge financial organization. Blockchain technology is a decentralized, distributed public ledger that records financial transactions in computer code.
When we state that blockchain is distributed, all parties using a DeFi application have an identical copy of the public ledger, which stores all transactions in encrypted code. This protects the system by ensuring user privacy, payment verification, and a record of asset ownership that is (almost) impossible to modify via fraudulent behaviour.
When we state that blockchain is decentralized, we refer to the absence of a middleman or gatekeeper who manages the system. By solving complicated arithmetic problems and adding new blocks of transactions to the chain, parties who utilize the same blockchain verify and record transactions.
DeFi proponents say that the decentralized blockchain enables more safe and transparent financial transactions than the private, opaque mechanisms used in centralized finance.
VISUAL ILLUSTRATION: Centralized Finance versus Decentralized Finance (maybe two opposite axes that show the opposition between CeFi and DeFi, include the following features:
Features of CeFi
- Centralized Exchange (CEX)
- The Flexibility of Fiat Conversion
- Cross-chain services
Features of DeFi
- Quick Innovation
Advantages of DeFi
- You are not required to submit an application or “open” an account. You only need to create a wallet to get access.
- You are not required to submit your name, email address, or any other personally identifiable information.
- You may relocate your assets anywhere at any moment, without obtaining authorization, waiting for lengthy transfers to complete, or paying exorbitant costs.
- Interest rates and prizes are often updated in real-time (as frequently as every 15 seconds), and may be much greater than those found on conventional Wall Street.
- Transparent: All parties may see the whole collection of transactions (private corporations rarely grant that kind of transparency)
How does it function?
Users interact with DeFi primarily via software known as dApps (“decentralized apps”), most of which are presently built on the Ethereum blockchain. Furthermore, the process is very different from that of a regular bank in that there is no set application to complete or account to open.
The following are some of how people are interacting with DeFi today:
- Lending: Lend your cryptocurrency and earn interest and benefits on a minute-by-minute basis, not just once a month.
- Obtaining a loan: Instantly get a loan without the need to complete documentation, even very short-term “flash loans” that conventional financial institutions can not give.
- Trading: Conduct peer-to-peer transactions on selected crypto assets – as if you were buying and selling stocks without the need of a brokerage.
- Saving for the future: Invest part of your crypto in alternative savings accounts and earn higher interest rates than you would normally receive from a bank.
- Purchasing derivatives: Place long or short positions on certain assets. Consider them as the crypto equivalent of stock options or futures contracts.
VISUAL ILLUSTRATION: Cover these functions with DeFi in the centre and each one as a circle.
Uncovering the Potential of Web 3.0
Web 3.0, the ultimate iteration of the internet, stands at the core of Moonwalker DAO’s strategy. Nonetheless, in order to comprehend the innovation brought by Web 3,0, it is paramount to scrutinize what came before.
- Web 1.0 (1989 to 2005)
Web 1.0 was indeed the internet’s first iteration. There were very few content providers, and most internet users were consumers. It was defined by a small number of content creators and many content consumers.
In Web 1.0, static pages were much more prevalent than dynamic HTML sites, and the material was retrieved from a file system rather than a database. Web 1.0 websites have a limited capability. Web 1.0 was significantly simpler, since a small number of individuals developed the internet’s content.
- Web 2.0 (2004/2005 – Today)
Web 2.0 is essentially the internet as we know it today. Web 2.0 pushed content consumers to become content producers. Rather than watching the internet passively, Web 2.0 created an atmosphere in which more people could become active participants.
Individuals could contribute articles and comments on Web 2.0 sites, and users could make accounts on many sites, which eventually boosted involvement and the number of people who routinely use the internet. Web 2.0 was constructed in such a manner that it pushed more individuals to generate original content.
The advent of applications, self-publishing platforms such as WordPress and Squarespace, and social networking platforms like Facebook, Instagram, LinkedIn, and YouTube defined Web 2.0. These websites place a premium on user-generated content, involvement, and user-friendly design, distinguishing Web 2.0 traits. In a nutshell, Web 2.0 evolved into the concept of “the internet as a platform.”
Web 2.0 represents the transformation that the internet underwent after the dot-com boom, but the internet is now undergoing another transition. This new era of the internet will provide new opportunities for consumers and content developers.
- Web 3.0 – The Imminent Future
The notion of Web 3.0 is not novel. What we now refer to as Web 3.0 was initially dubbed the Semantic Web by Tim Berners-Lee, the World Wide Web’s creator. He envisioned it as a more intelligent, autonomous, and open internet.
In Web 3.0, data will be linked decentralized, in contrast to generation 2.0 of the internet, which relies heavily on centralized data storage. Users will also be able to engage with data in Web 3.0 with the use of artificial intelligence and machine learning technologies. Ultimately, Web 3.0 will merge Semantic Web and AI principles.
The application of AI will enable data to be sent to consumers more quickly, and the data will be more relevant to each user.
Web 3.0 will, in some aspects, reintroduce the original notion of the web, a place where no central authority is required to publish, where there is no central control, and where there is no single point of failure.
While Web 2.0 has been defined by centralization, monitoring, and intrusive advertising, adopting decentralized technologies such as blockchain will enable a more open environment with decentralized data on the internet. Web 3.0 will enable decentralized applications to replace centralized social networks such as Facebook, while retaining individual control over their personal data.
Web 3.0 will be enabled by decentralized protocols, and as a result, I anticipate that the internet, blockchain technology, and cryptocurrencies will all be linked and automated in the future through the use of smart contracts.
VISUAL ILLUSTRATION: Draw a chronological axe from Web 1.0 to Web 2.0 to Web 3.0, integrate the following features in boxes/ bubbles
- Static Pages
- The server’s file system is used to serve content.
- Pages are created with the help of Server Side Includes or the Common Gateway Interface (CGI).
- The items on a page are positioned and aligned using frames and tables.
- The ability to sort information freely enables users to collectively obtain and categorize data.
- Content that is dynamic and responsive to user interaction.
- Information is exchanged through review and online comments between the site owner and site visitors.
- Created APIs to enable self-use, for example, by a software program.
- Web access results in a number of concerns, ranging from the typical Internet user base to a broader range of users.
- Semantic Web – Enabling the creation, sharing, and connection of material through search and analysis based on the capacity to grasp the meaning of words rather than on keywords or numbers.
- Artificial Intelligence – By combining this capacity with natural language processing, machines in Web 3.0 can discern information in the same way that people can, resulting in quicker and more relevant results. They get more intelligent as a result of user demand.
- Graphics in three dimensions – 3D graphics are used in various scenarios, including museum tours, computer games, e-commerce, and geographical applications.
- Connectivity – Information is increasingly linked in Web 3.0 due to semantic metadata. Consequently, the user experience advances to a new level of connection that makes use of all accessible data.
- Ubiquity – Multiple apps may access the same content, every device is linked to the web, and the services are available from anywhere.
Features of Web 3.0
Ultimately, Web 3.0 constitutes an expanded and improved version of the internet as we know it now, but with the added advantage of decentralization. Web 3.0 will be as follows:
One of the most exciting parts of Web 3.0 is that it will displace the centralized businesses that presently rule the internet from power due to its decentralized structure. Web 3.0 will enable websites and apps to obtain more data that will be displayed in a more useful manner for users.
Why is Web 3.0 Critical?
For far too long, a small number of huge corporations controlled the internet, leaving people with little influence. These organizations have requested our personal information in return for access to their platforms and services, which they have then monetized and profited from.
If you are concerned about reclaiming control of your personal data, you should be concerned about Web 3.0. If you want to utilize an internet that benefits everyone equally, you should be pleased about Web 3.0.
Additionally, if you appreciate the advantages of decentralization, it is essential to acknowledge the significance of Web 3.0. If you recall the initial idea for the World Wide Web, Web 3.0 embodies that vision in many ways.
Born a few years ago as a logical evolution of the blockchain, NFTs have exploded in popularity in recent months, both in the market and in the media.
What is an NFT?
NFT is an abbreviation for “Non-Fungible Token” What does this imply? In the case of fungible products, such as banknotes (which may be exchanged for other banknotes of the same denomination), non-expendable goods suggest that they are neither replicable nor replaceable due to their uniqueness.
This uniqueness is established by using a digital mark accompanied by a certificate of validity and uniqueness. This certificate is made possible via the use of blockchain technology. Thus, NFTs are connected with digital material, ensuring its uniqueness and validity by providing the owner with a certificate of authenticity for the digital product in question, which the NFT controls. Each NFT is a one-of-a-kind piece, owing to the blockchain, and hence is not fungible or interchangeable. In a nutshell, this is an NFT.
Advantages of NFTs
A non-fungible token is similar to a digital asset’s certificate of ownership. Value is derived from an asset’s collectability as well as its possible future selling price. NFTs are available for sale and trading.
The fundamental benefit of non-fungible tokens is that they may be used to establish ownership. Due to their location on a blockchain network, NFTs may assist in tying ownership to a single account. NFTs are not transferable and cannot be shared between multiple owners.
Non-fungible tokens’ advantages are mostly dependent on their uniqueness. Because NFTs are created on the blockchain, they are associated with unique data. The distinctive characteristics of NFTs exemplify their capacity to provide value.
NFTs are non-transferable because they adhere to the ERC-721 standard, which implies that the data they contain cannot be transmitted or utilized in any other manner.
Since NFTs are created on the blockchain, they need the usage of smart contracts to facilitate ownership transfers. Smart contracts provide exact conditions that must be satisfied by both buyer and seller prior to the ownership transfer being accomplished.
The author may choose the total quantity of NFTs to be made accessible, which makes them relatively uncommon. This distinguishes them, but it also adds to their worth. The fewer NFTs there are, the greater their cost.
These non-transferable tokens are administered and operated through a blockchain, which significantly raises their degree of security. It prohibits the removal or destruction of certain NFTs.
NFTs inspired by genuine art use blockchain technology to differentiate themselves from the public and assess the authenticity of a piece of art. Additionally, it aids in determining the difference between authentic and counterfeit merchandise.
VISUAL ILLUSTRATION: Use the features of NFTs as two triangles (or maybe you have another idea), with all six corners representing its advantages:
Future Applications of Non-Fungible Tokens
Without question, NFTs have a bright future ahead of them. NFTs will continue to improve in the future, enabling consumers to earn a better rate of return on their investments. This is a secure platform that ensures the security and transparency of transactions. Due to the decentralized nature of transactions, they do not need to be conducted in person. Numerous organizations are pursuing the development of a new NFT market at a very high cost to meet consumer demand.
What are NFT Markets?
Marketplaces for non-financial transactions have become an integral aspect of the digital economy. As previously stated, tokens cannot be traded on standard cryptocurrency exchanges, and hence specialized platforms began to emerge.
Today, there are many NFT markets; some specialize in digital art, while others offer Tweets or gaming features. In a moment, we shall review some of the most popular markets. As of today, the issue is how such systems permit trade.
- Smart Contracts
A smart contract is the primary feature of every NFT marketplace. What exactly is it? A smart contract is a self-executing digital document that outlines the terms of the transaction between the buyer and seller and the information associated with a particular token. It is not a standard paper since all data is encrypted and based on blockchain, making it impossible to counterfeit the content.
Smart contracts are responsible for the trading process’s transparency. Additionally, they guarantee that the token is unique and authentic, that its ownership is validated, and that it is transferable. Essentially, a smart contract enables the execution of a transaction only when all of the conditions are satisfied. The Ethereum blockchain is based on two distinct standards: the ERC 1155 Standard and the ERC 721 Standard.
- Wallets for cryptocurrency
Prior to creating a smart contract, the buyer should pay for the NFT. Naturally, conventional banking is seldom engaged. Because bitcoin is primarily utilized for NFT trading, purchasers must have a cryptocurrency wallet.
Crypto wallets are unique because they do not really hold NFTs or bitcoin. They provide a point of reference for the blockchain’s ownership and enable access to the underlying assets. A buyer receives a private key to the address associated with the transaction. Binance, Metamask, and Coinbase are all prominent cryptocurrency wallets.
Finally, there is another critical element of NFT markets to consider. Frequently, they serve as auctions. Of course, some platforms provide fixed-priced things, but given the strong demand for NFTs, it is unsurprising that there is some competition.
Events Sector and Blockchain Industry
As already stated, Moonwalker.DAO has the paramount objective of revolutionizing the events sector. Moving forward, we will uncover several significant blockchain application cases within the events sector in the next weeks and months:
- Identifying and preventing ticket fraud
When it comes to selling tickets for their events, ticket scalping and fraud are two things that event organizers are concerned about. Fanatics who are unable to get tickets in time for popular events such as soccer matches grow frantic to find alternate sources of tickets to attend the event in question. Ticket scalpers purchase tickets in advance and then resell the tickets to fans who did not have tickets at high rates.
Using blockchain-based ticketing systems, event organizers may tokenize tickets and sell them on exclusive blockchain platforms, increasing their revenue. They will always be aware of and be able to manage who purchases tickets from them as a result of this. The authorities may even allow for the selling of second-hand tickets while guaranteeing that they are sold at the original cost, so reducing the likelihood of predatory ticket scalping occurring. Organizers are already using blockchain-based ticketing systems to prevent ticket scalping and fraud, and they have had remarkable success with them.
- Authenticating the identity of attendees
When there are a huge number of people attending an event, visitor management becomes a nuisance. Visitors management is complicated by the need to ensure the security of the event by validating the identity of those who enter the event venue, which may be difficult. Adding to the difficulty is the need to give guests a hassle-free and comfortable event environment. Too much emphasis on security may result in lengthy identification verification procedures, which can leave a poor taste in the mouths of those who participate.
By using blockchain-based event management systems, attendees may have their identities verified quickly at events by presenting their virtual identification cards. These virtual identification cards, which may be used in combination with event passes, can be used to verify the participants’ credentials and eligibility to take part in the event.
- Increasing audience participation to the greatest extent possible
As previously said, events serve as excellent marketing venues for companies seeking to expand their reach. However, in order to have a significant marketing effect, it is essential to maintain high levels of audience engagement. The blockchain is being used by businesses to carry out engagement-enhancing activities such as the distribution of theme-based mementoes and unique items to followers. The usage of blockchain-based platforms by leading global athletic clubs such as Real Madrid and Arsenal to communicate with their supporters and keep them engaged is becoming more common.
Businesses should consider using blockchain-based event management systems to tackle their challenges since they have already past the proof-of-concept stage and are witnessing rising popularity. The key to effectively adopting blockchain in the events sector is to start small and clearly define the issue that needs to be addressed as well as the precise function that blockchain will play in addressing the stated problem.
Aiming to revolutionize the events industry, MoonWalker DAO is devoted to the advancement of Web3, the Internet’s third generation, and its associated technologies. Fairer and more egalitarian will be the Web3, which will be powered by cryptocurrencies and managed by the builders, producers, and consumers.
We redefine how money is moved, spent, and invested as part of the processes we take to accomplish our goals. Additionally, we believe that a simple and elegant blockchain interface and excellent financial services are critical to democratizing blockchain technology and making it more accessible to the general population.
We aim to accelerate the global adoption of blockchain, first and foremost. We believe that by accelerating the use of cryptocurrencies, we can aid people all across the world in achieving the following goals: They have control over their money: they can access it at any time and from any location. Protect their data: a cryptographically secured blockchain almost eliminates the possibility of data manipulation; and Protect their identity: no central authority can compromise your identification.
Putting the foundation in place, one brick at a time and building block by block, will allow everyone to regain control over their money, data, and personal information. The path to Web3 construction will be long and challenging, but we will all look back on this moment in time and know that we have conquered the world!