What is NFT | How can it help in defi?

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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.

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

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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.

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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.

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

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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.

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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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