Learn More About the Most Exciting Web3 Trends
As you likely know, there are many trends that are worth discussing in our modern age. This is especially true when it comes to digital trends since people have the ability to do so many things digitally these days. One of the most exciting of these digital industries is Web3. Today, we’ll cover a total of 4 Web3 trends that are pretty exciting and deserve to be discussed.
These trends are NFTs, DeFi, Liquid Staking, and Bitcoin Ordinals. These trends are worth knowing, especially if you are interested in knowing about crypto topics that few else have discovered yet.
What Should You Know About NFTs?
You have probably heard of NFTs at some point, but you might not know that much about them. First of all, NFT stands for non-fungible token. An NFT is a type of cryptographic asset on a certain blockchain and it has metadata and unique identification codes that distinguish it from other assets.
You may be able to exchange and trade NFTs for cryptocurrencies, traditional money, or other NFTs. Your ability to do so depends on the value that the owners and the market place on the NFT. Additionally, NFTs can represent real-world or digital items such as real estate and artwork. One thing that you should know is that it can be challenging to determine the value of an NFT. Some people might value a certain NFT much more highly than others.
Find Out More about Decentralized Finance
Another one of the most exciting Web3 trends is decentralized finance, often abbreviated to simply DeFi. With centralized finance, you use institutions like brokerages and banks in order to access financial services and capital. However, with decentralized finance, you can instead use peer-to-peer digital exchanges.
Additionally, if you use DeFi, you do not have to pay fees to centralized middlemen in order to use its services. Your money is held in a secure digital wallet and you can use DeFi to transfer funds in a matter of minutes. You can access DeFi as long as you have an Internet connection. You should also know that the DeFi infrastructure is always evolving. Decentralized finance is a newer trend in alternative finance, so the constant change is no surprise.
What Exactly Is Liquid Staking?
Liquid staking is a trend that is relevant in the area of decentralized finance. Liquid staking means that you pledge your funds in order to secure the crypto-staking infrastructure of a blockchain network, but you can still access your funds. As a result, your funds are still ‘liquid’, hence the term liquid staking. This is beneficial because it means that you do not have to wait to access your funds after staking them to secure the network. Liquid staking has become more popular due to the recent rise of decentralized finance and Ethereum’s “Merge” to Proof-of-Stake from Proof-of-Work.
Bitcoin Ordinals
Bitcoin ordinals might sound complicated, but they are actually not that complex. The term Bitcoin Ordinals describes a protocol that allows you to assign individual satoshis a unique identifier. As you may know, a satoshi is the smallest Bitcoin currency unit.
Each Bitcoin contains 100 million satoshis. As a result of giving Bitcoin ordinals unique identifiers, these ordinals are now immutable digital collectibles that can be bought and sold on the Bitcoin network. Bitcoin ordinals and NFTs are not the same things, but they do share some similarities.
