What is NFT | How can it help in defi?

NFT stands for Non-fungible tokens. They are one of the kinds of cryptographic tokens that can address the responsibility for scant merchandise.

Every NFT is different and has different properties and that are usually stored in the token form into the token metadata. NFTs are provably scarce.

To the standard tokens nfts guarantee the ownership of the asset. These are easily transferable and are fraud-proof.

ERC 20 is a well-known and most popular standard for developing tokens on the ethereum blockchain.  It’s some of the examples are:- USDT, DAI, or DEFI coins such as SNR and UNI. 

ERC 721 takes into consideration making contracts that can be utilized to make discernable tokens with various properties. The game crypto kitties allow users to collect and breed virtual kittens.

ERC 1155 is the next step in creating nonfungible tokens. This standard considers making gets that help both fungible and nonfungible tokens.

We will see that defi NFT will open more potential for decentralized finance. At this time in defi, the vast majority of def lending protocols are collateralized.

NFT can likewise address more complex financial products. Besides being used as collateral. It can be used as insurance, bonds, or options.

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