<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/DeFi-and-non-fungible-tokens-—-1024x576.jpg" alt="" class="wp-image-1166" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/DeFi-and-non-fungible-tokens-—-1024x576.jpg 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/DeFi-and-non-fungible-tokens-—-300x169.jpg 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/DeFi-and-non-fungible-tokens-—-768x432.jpg 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/DeFi-and-non-fungible-tokens-—.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



The blockchain consists of many of the same tokens that can replace each other. Therefore, even if the components of the blockchain are replaced, the system can continue to function as before without any changes. But there is another type of token called NFTs, which was created in 2017 based on Ethereum smart contracts.



At the same time, DeFi refers to a financial system that operates on a decentralized, permissionless blockchain, such as Ethereum, and is built using smart contracts. So, NFTs and DeFi are the two most commonly used terms in conversations about cryptocurrency and blockchain technologies. The world continues to explore the possibilities of these two fascinating fields of innovation, but how do NFTs and DeFi intersect? This is a very interesting topic and we will discuss it in detail today.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="960" height="540" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-21.png" alt="" class="wp-image-1165" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-21.png 960w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-21-300x169.png 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-21-768x432.png 768w" sizes="(max-width: 960px) 100vw, 960px" /></figure>



<h2 class="wp-block-heading">What are NFTs used for?</h2>



NFTs or non-fungible tokens are also one of the components of the Ethereum blockchain. It is impossible to split or replace NFTs because they are unique and differ from other blocks in the Ethereum network. This allows a person or company to secure their rights to a unique object that has been used successfully by artists and art venues. So let&#8217;s look at the main ways non-fungible tokens are used:



<ul>
<li>Non-fungible tokens on the Ethereum blockchain are used to represent unique digital assets such as art, music, video, and other forms of creative work.</li>



<li>These tokens are often bought/sold as collectibles, and their value can vary based on factors such as rarity, popularity, and historical significance.</li>



<li>By allowing artists to retain control and receive ongoing royalties for their work even after it is sold, these tokens have the potential to transform property rights and royalty systems in the creative industries.</li>
</ul>



Converting files into non-fungible tokens is a secure way to use blockchains to streamline the processes of buying, selling, and trading while drastically minimizing the occurrence of fraud. But when looking at NFTs from a financial perspective, they can be viewed as a store of value, similar to more conventional assets such as gold or coins. In this sense, each token represents a unique value that may be subject to market variability.&nbsp;



So, the similarities between NFTs and conventional financial systems are greater than many people realize. Rather than viewing DeFi and non-fungible tokens as potentially opposing concepts, it is important to recognize that they can have a close connection. NFTs are already being integrated into financial processes, demonstrating the potential of combining with DeFi. To understand how this merger can benefit individuals in both the real world and the metaverse, it is important to have a clear understanding of the definition and purpose of the DeFi ecosystem.



<h2 class="wp-block-heading">What can you do with DeFi?</h2>



Today DeFi enables a range of financial activities similar to those offered by banks, such as earning interest, borrowing and lending, insurance, trading, flash loans, and others. Moreover, decentralized finance works faster, more efficiently, and with greater security through the use of blockchain technology (most often Ethereum).&nbsp;



Users interact directly with each other without third-party providers. In addition, blockchains allow for the elimination of time constraints — the system can be used by any person 24/7, all year round. Let&#8217;s take a closer look at the definition of decentralized finance:



<ul>
<li>DeFi operates as a financial system, with the involvement of various blockchains, including Ethereum, to enable its ecosystem.</li>



<li>DeFi provides decentralized financial management solutions by incorporating tools like smart contracts.</li>



<li>The system of decentralized finance is completely transparent and open, unlike the alternative centralized services.&nbsp;</li>
</ul>



So, the definitions of non-fungible tokens and DeFi clearly show the possibilities of discovering the link between the two. But where do you start to see the connection between DeFi and NFTs? Looking at their definitions, you can see that NFT tokens offer a unique way to store value and DeFi space provides a decentralized infrastructure to unlock value.



<h3 class="wp-block-heading">What are smart contracts in blockchain?</h3>



As you may know, smart contracts are self-executing programs that run on a blockchain (Ethereum or another). They enable the automation of contract execution, validation, and enforcement without the need for a third party. In the context of our topic today, it is very important to reveal another thing. So, smart contracts play a critical role in both DeFi projects and NFT tokens:



<ul>
<li>In DeFi, smart contracts are used to automate lending, borrowing, trading, and staking, ensuring that all operations are performed correctly and transparently without the need for a broker.</li>



<li>In the case of NFTs, smart contracts are used to define the unique characteristics of the asset, such as proprietary rights, transferability, and authenticity. Smart contracts allow token creators to program certain conditions, ensuring that the artist receives a share of the profits when the token is sold/traded.</li>
</ul>



In addition, DeFi protocols are sets of self-executing programs that are encoded into smart contracts on a blockchain like Ethereum or another. DeFi protocols use blockchain technology to provide a more secure and transparent way to conduct various operations. Now you understand why we touched on this topic.



<h2 class="wp-block-heading">How does NFT token help in DeFi?</h2>



Now NFTs can play an important role in the DeFi space by providing unique assets that can be used as collateral for loans, traded on marketplaces, and used in other financial apps. For example, NFT marketplaces can integrate with DeFi protocols to offer new financial applications and investment opportunities. Let&#8217;s explore the different use cases of non-fungible tokens in DeFi:



<ul>
<li>Collateral for loans in DeFi. For example, a person can deposit tokens as collateral and borrow a certain amount of crypto, which they can then use for other purposes.</li>



<li>Users can provide liquidity to DeFi protocols by staking their NFT, which earns them a share of the transaction costs generated by the DeFi protocols.</li>



<li>NFT can also be used to create unique products in DeFi, such as prediction markets.</li>



<li>By holding an NFT, users can participate in decision-making processes related to the operation of the DeFi platform, such as voting on proposals or allocating resources.</li>



<li>NFT can be traded on marketplaces, allowing people to gain exposure to unique assets and providing new investment opportunities in the crypto field.</li>
</ul>



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="960" height="540" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-20.png" alt="" class="wp-image-1164" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-20.png 960w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-20-300x169.png 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-20-768x432.png 768w" sizes="(max-width: 960px) 100vw, 960px" /></figure>



So, NFTs have emerged as a promising use case in the DeFi space, particularly on the Ethereum blockchain (with the introduction of ERC-20 tokens representing digital assets). NFTs can serve as proof of proprietorship for art and other unique assets, making Ethereum an ideal platform for creators to share and engage with collectors.&nbsp;With the ability to prove proprietorship, NFTs offer significant value propositions on the DeFi platforms. Most importantly, DeFi helps in revealing the value of a particular asset. The next few years will show how productive the process of merging NFT and DeFi technologies will be, and whether it will be able to attract new users to the ecosystem without any major problems for it.

AlphaGuilty

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The AlphaGuilty Ambassador Program: Building a Community Together

DeFi companies

How to accept crypto payments

DeFi liquidity

How to invest in DeFi

How much does crypto get taxed

How can NFTs be used in DeFi (decentralized finance)?

What is DeFi

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Boosting-the-Security-of-Your-Crypto-Wallet-1024x576.webp" alt="Boosting the Security of Your Crypto Wallet" class="wp-image-1339" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Boosting-the-Security-of-Your-Crypto-Wallet-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Boosting-the-Security-of-Your-Crypto-Wallet-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Boosting-the-Security-of-Your-Crypto-Wallet-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Boosting-the-Security-of-Your-Crypto-Wallet.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


In the fast-paced world of cryptocurrencies, safeguarding your assets is paramount. The rise of digital currencies has brought with it a surge in interest, innovation, and, unfortunately, cyber threats. Crypto enthusiasts embark on a quest for financial freedom, but this journey requires an essential companion: crypto wallet safety. In this article, we&#8217;ll explore the critical aspects of wallet security and delve into the art of securing your crypto wallet for a safe and prosperous crypto journey.
<h2>The Significance of Crypto Wallet Security</h2>
Think of your cryptocurrency wallet as a fortified online vault protecting your wealth. Security for your cryptocurrency wallet is how you can safeguard your digital assets, much as any intrepid explorer would secure their fortress. It&#8217;s important to make sure that your wallet is protected against evil forces, not just that you own one.

<h2>Understanding Crypto Wallets</h2>


<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Understanding-Crypto-Wallets-1024x576.webp" alt="Understanding Crypto Wallets" class="wp-image-1340" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Understanding-Crypto-Wallets-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Understanding-Crypto-Wallets-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Understanding-Crypto-Wallets-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Understanding-Crypto-Wallets.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


Before we dive into securing your crypto wallet, it&#8217;s essential to understand the two primary types of crypto wallets:
Hot Wallets: These are wallets connected to the internet, making them convenient for daily transactions. However, they are more vulnerable to cyberattacks.
Cold Wallets: Cold wallets are offline storage solutions, such as hardware wallets or paper wallets. They are considered the most secure because they are not directly connected to the internet.

<h2 style="text-align: center;">How to Secure Your Crypto Wallet</h2>


<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Secure-Your-Crypto-Wallet-1024x576.webp" alt="How to Secure Your Crypto Wallet" class="wp-image-1341" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Secure-Your-Crypto-Wallet-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Secure-Your-Crypto-Wallet-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Secure-Your-Crypto-Wallet-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/08/Secure-Your-Crypto-Wallet.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


 
<ol>
<li>Choose the Right Wallet: The first step in securing your crypto wallet is selecting the right one. Research different wallet types and choose a reputable one known for its security features.</li>
<li>Use Strong Authentication: Enable two-factor authentication (2FA) wherever possible. This adds an extra layer of security by requiring you to provide a second form of verification in addition to your password.</li>
<li> Secure Your Private Keys: Your private keys are the keys to your crypto kingdom. Store them in a safe place, preferably offline. Hardware wallets offer a secure way to manage your private keys.</li>
<li>Update Regularly: Keep your wallet software up to date. Developers often release updates that patch security vulnerabilities.</li>
<li> Beware of Phishing: Be cautious of phishing attempts, where attackers pose as legitimate entities to steal your wallet information. Always verify the authenticity of the websites and emails you interact with.</li>
<li>Backup Your Wallet: Regularly back up your wallet data in case of hardware failure or loss. Store backups in multiple secure locations.</li>
<li>Encrypt Your Wallet: Enable encryption on your wallet to protect your funds from unauthorized access.</li>
<li>Use Strong Passwords: Create strong, unique passwords for your wallet and change them periodically. Avoid using easily guessable passwords.</li>
<li> Practice safe browsing: Avoid visiting suspicious websites or clicking on suspicious links, as these can lead to malware infections that compromise your wallet security.</li>
<li>Stay informed: Keep yourself updated about the latest security threats and best practices in the crypto world. Being informed is your best defense.</li>
</ol>
<h2>Safe Wallet Crypto</h2>
By understanding the importance of crypto wallet security and following best practices, you can navigate this exciting terrain with confidence.
Remember that a secure cryptocurrency journey starts with selecting the correct wallet and continues with ongoing attention to detail and security precautions. Protect your investments, and may your search for cryptocurrency bring you success and security in the future.

Boosting the Security of Your Crypto Wallet with Safety and Privacy in Crypto Quests

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Task-Execution-1024x576.webp" alt="On-chain Task Execution" class="wp-image-1362" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Task-Execution-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Task-Execution-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Task-Execution-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Task-Execution.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


Smart contracts have emerged as a groundbreaking innovation within the realm of blockchain technology, significantly transforming the way transactions and agreements are executed. In this article, we will delve into the essence of smart contracts, their integration with blockchain technology, and how they play a pivotal role in enabling on-chain task execution.

<h2 style="text-align: center;">What is a smart contract?</h2>


<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/smart-contract-1024x576.webp" alt="What is a smart contract" class="wp-image-1363" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/smart-contract-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/smart-contract-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/smart-contract-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/smart-contract.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


A smart contract can be best described as self-executing, programmable code that automatically enforces and executes the terms of an agreement when predefined conditions are met. Unlike traditional contracts, smart contracts are digital and operate on a decentralized blockchain network. They have garnered immense attention for their ability to facilitate trustless, transparent, and tamper-resistant transactions.

<h2 style="text-align: center;">Smart Contracts and the Blockchain</h2>

Smart contracts are inherently intertwined with blockchain technology. They reside on the blockchain and harness the data and assets stored within the ledger. This symbiotic relationship ensures the security and immutability of smart contracts since any alteration or manipulation necessitates consensus from the majority of network participants.
The execution of smart contracts on the blockchain occurs without human intervention. When specific conditions encoded within the contract&#8217;s logic are satisfied, the contract automatically triggers the predefined actions. For instance, in a real estate transaction, a smart contract can facilitate the transfer of property ownership upon receipt of the agreed-upon payment, ensuring that both parties fulfill their obligations without relying on intermediaries.

<h2 style="text-align: center;">Advantages of Blockchain Smart Contracts</h2>


<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Blockchain-Smart-Contracts-1024x576.webp" alt="" class="wp-image-1364" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Blockchain-Smart-Contracts-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Blockchain-Smart-Contracts-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Blockchain-Smart-Contracts-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Blockchain-Smart-Contracts.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


<ol>
<li>Decentralization: Smart contracts operate within a decentralized network, eliminating the need for a central authority or intermediary. This decentralization contributes to greater transparency and trust.</li>
<li>Transparency: Every transaction and action performed by smart contracts is recorded on the blockchain for all participants to see. This transparency mitigates disputes and ensures accountability.</li>
<li>Security: The immutability of blockchain technology makes smart contracts highly secure. Once deployed, they cannot be altered or tampered with, enhancing the integrity of agreements.</li>
<li>Efficiency: By automating the execution of agreements, smart contracts reduce the time and costs associated with traditional contract management. This efficiency is particularly beneficial in industries requiring swift and precise execution, such as supply chain management.</li>
<li>Cost Reduction: Smart contracts eliminate the need for intermediaries, lawyers, or notaries, reducing administrative and transactional costs.</li>
</ol>

<h2 style="text-align: center;">Applications of Blockchain Smart Contracts</h2>


<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Applications-smart-contracts-1024x576.webp" alt="" class="wp-image-1365" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Applications-smart-contracts-1024x576.webp 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Applications-smart-contracts-300x169.webp 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Applications-smart-contracts-768x432.webp 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/09/Applications-smart-contracts.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>


Blockchain smart contracts find utility across a myriad of industries and use cases, including:
Financial Services: Smart contracts facilitate automated, secure transactions, enabling the creation of decentralized financial instruments like decentralized exchanges (DEXs) and lending platforms.
Supply Chain Management: Tracking the provenance of goods, ensuring product authenticity, and automating inventory management are made more efficient with smart contracts.
Healthcare: Patient records, insurance claims, and medical research can benefit from the secure and interoperable nature of smart contracts.
Legal and Real Estate: Automating the transfer of property titles, escrow services, and even legal agreements can streamline processes in these sectors.
Governance: Voting and decision-making within organizations can be conducted transparently and securely through blockchain-based smart contracts.
Smart contracts have emerged as a transformative force within the blockchain ecosystem. Their ability to autonomously execute agreements, reduce reliance on intermediaries, enhance security, and increase transparency makes them a cornerstone of blockchain technology&#8217;s potential. As industries continue to explore their applications, smart contracts are set to revolutionize how tasks and transactions are executed on the blockchain, paving the way for a more efficient and trustless future.

The Role of Smart Contracts in Enabling On-chain Task Execution

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Top-DeFi-companies-to-watch-in-2023-1024x576.jpg" alt="" class="wp-image-1194" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/Top-DeFi-companies-to-watch-in-2023-1024x576.jpg 1024w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/Top-DeFi-companies-to-watch-in-2023-300x169.jpg 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/Top-DeFi-companies-to-watch-in-2023-768x432.jpg 768w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/Top-DeFi-companies-to-watch-in-2023.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Today, crypto has fundamentally changed the perception of the value of fiat money and created significant competition for standard payment systems. Until recently, earning money from digital assets was limited to a few areas: trading, investing in potentially profitable projects, participating in airdrops, and the classic &#8220;buy and hold&#8221;. Despite the innovation and clear superiority of crypto over fiat, many aspects of the classic financial system were still missing.



So, a robust technological ecosystem is essential for the full development of the cryptocurrency economy and its various elements. Currently, decentralized finance is driving the discovery of innovative solutions and the recreation of traditional financial models without relying on a third party.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="960" height="640" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-31.png" alt="" class="wp-image-1193" srcset="https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-31.png 960w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-31-300x200.png 300w, https://api-blog.alphaguilty.com/wp-content/uploads/2023/03/image-31-768x512.png 768w" sizes="(max-width: 960px) 100vw, 960px" /></figure>



This material aims to highlight the top DeFi companies and stocks to watch this year, while also providing an overview of why the DeFi ecosystem is rapidly growing within the crypto industry.



<h2 class="wp-block-heading">What is decentralized finance?</h2>



Now decentralized finance refers to an ecosystem of DeFi applications developed on various blockchains. The most popular DeFi projects are created on the ETH blockchain. There are also systems on BTC based on Rootstock (smart contracts in the Bitcoin network). The goal of decentralized finance is to move the existing financial system to blockchains, making it accessible and open to the world. To help newcomers get up to speed, let&#8217;s review the basics:



<ul>
<li>Decentralized finances goal is to bring together all the benefits of the existing system (in the form of interest rates on deposits, lending opportunities, and insurance) while replacing various agents and intermediaries with smart contracts.</li>



<li>DeFi is distinguished from the ordinary system by greater efficiency, availability, and transparency. For example, DeFi projects offer the possibility of P2P lending, where a person from anywhere in the world can take out a loan or deposit existing assets.</li>



<li>The efficiency of these projects is that they eliminate brokers from their routine work. The work of the banker or insurer in the decentralized system is done by a smart contract, which resolves possible disputes.</li>
</ul>



So the guarantor of reliability is the blockchain on which this or that project is built (as we mentioned above, it is mostly ETH blockchain). All relationships here are built and regulated by smart contracts, and this is incredibly convenient.



A DeFi wallet is a digital wallet that allows users to store, send, and receive various digital assets used in decentralized finance protocols.



<h3 class="wp-block-heading">Use of smart contracts</h3>



In the past, if you wanted to make a deal with a person whose integrity you were not sure of, the only way out was to find a broker who could protect you with his authority, for a fee, of course. Today, everything is much simpler.&nbsp;



So, smart contracts are self-executing digital contracts built on blockchain technology. They are essentially programs that automatically execute the terms when certain pre-defined conditions are met. Such contracts are a key component of Web3 because they enable trustless and decentralized transactions between parties without the need for brokers.



Today, Web3 represents a new era of the Internet that is more transparent, and user-owned. It is also built on blockchain, which enables secure and tamper-proof transactions without the need for mediators such as banks or other institutions. This has the potential to democratize access to various services and create new models of governance and social organization. Current projects are developing in several directions:



<ul>
<li>Decentralized exchanges.</li>



<li>Special platforms, one part of which specializes in lending, the other in providing interest income from deposits.</li>



<li>Platforms for risk management (an alternative to insurance).</li>



<li>Platforms for the creation, management, and trading of derivatives, where the basic instruments are tokens.</li>
</ul>



In addition, most projects publish everything from capitalization and collateral to transaction lists.



<h2 class="wp-block-heading">What is the distinction between crypto and DeFi?</h2>



Crypto/DeFi are related concepts, but they are not the same. For example, the first term refers to any digital asset designed to be used as a medium of exchange, store of value, or unit of account. Crypto is based on technology that enables secure and transparent transactions without the need for middle parties.



DeFi, on the other hand, specifically refers to decentralized financial apps based on the same technology. These applications are designed to be accessible to anyone with an Internet connection and are often built on top of existing networks. This category also includes decentralized exchanges, lending and borrowing platforms, and other tools that allow users to interact with each other in a decentralized way.



So while crypto refers to a broad category of digital assets that include tokens and coins, DeFi is specific to the system that focuses on building decentralized applications.



<h3 class="wp-block-heading">Is DeFi the best solution?</h3>



DeFi Web3 projects expand opportunities for crypto enthusiasts by offering new models and ways to make money from their assets. Among the new opportunities is the ability of a digital currency to multiply just by having it. We&#8217;re talking about Proof of Stake and other passive income options.



For example, liquidity pools. It could be said that liquidity pools are locked tokens that facilitate efficient asset trading and allow investors to generate income from crypto ownership. Also, a liquidity pool is an automated market maker that provides liquidity to prevent significant fluctuations in asset prices. AMM is an innovation that allows trading without the need for order books.



We should also mention the possibility of obtaining passive income through Proof of Stake. Crypto staking is a process by which owners of certain assets can receive rewards for keeping their coins in a wallet. With Proof of Stake, an investor earns profit simply by storing tokens in the wallet or on a special platform for a contractually agreed time. Thus, the Proof of Stake algorithm appears to be an alternative to simply holding assets in a wallet, which is analogous to a bank deposit in the crypto industry.



But DeFi is still a relatively new technology, and there are several risks associated with it. For example, smart contract vulnerabilities can lead to hacks and other transaction security issues. Also, the regulatory environment for DeFi is still evolving. Whether this is the best solution depends on the specific use case and individual risk tolerance. While it has the potential to create a more accessible system, it is important to thoroughly understand the potential drawbacks.



<h2 class="wp-block-heading">What are the top DeFi stocks to watch this year?</h2>



In this article, we&#8217;ll provide a summary of some of the most promising DeFi stocks to watch in 2023. We&#8217;ll also evaluate the potential for both short-term and long-term investment, taking into account current market conditions:



<ul>
<li>MATIC, the token that powers Polygon, is a leading scaling platform for Ethereum&#8217;s dApps and a major driver of the ecosystem. With a current price between $1.20 and $2, MATIC is an affordable option for investors interested in short-term or long-term positions, depending on their investment strategies.</li>



<li>CoinBase remains one of the most popular and talked about public companies in the DeFi space, as it continues to dominate as one of the leading exchanges. Given the high volatility of both COIN and the broader crypto industry, investors may want to consider short-term strategies for the coming months of 2023.</li>



<li>The price movement of RIOT is closely tied to that of Bitcoin, providing traders with valuable insight into market patterns and helping them determine their short-term options. Although RIOT is an attractive option for investors, it is high-risk and may not be suitable for long-term investment.</li>



<li>For traders and investors looking to diversify their stock portfolio, Canaan Inc. could be a potential competitor to RIOT. With a 52-week range of $3.50 to $39.10, Canaan Inc. may be an attractive option for day or swing traders who are willing to monitor the stock closely and manage its risk profile.</li>
</ul>



As with any emerging vertical or sub-vertical in the financial markets, only time will tell which companies (and currencies) will emerge as leaders in both the short and long term.



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<h2 class="wp-block-heading">Top DeFi development companies to watch in 2023</h2>



Here are some of the top companies leading the way in the DeFi space:



<ul>
<li>Uniswap allows users to exchange tokens without the need for an order book or centralized authority. It is known for its user-friendly interface and low fees, making it a popular choice for traders.</li>



<li>Aave is a lending platform that allows users to lend, borrow and earn interest on a variety of crypto. It is known for its innovative flash loan feature, which enables users to borrow funds without collateral.</li>



<li>GMX is a derivatives platform that operates across multiple chains, including Avalanche, Arbitrum, and BNB Chain, offering users the ability to trade futures, perpetual, and options with up to 25x leverage. The platform boasts over $400 million in TVL and offers over 20 trading pairs.</li>



<li>MakerDAO is an autonomous organization that operates the Maker protocol, a platform for creating and managing the Dai stablecoin. Dai is widely used in the DeFi space for trading, lending, and other financial apps.</li>
</ul>



So, DeFi represents an emerging segment of the crypto industry that has the potential to transform the way we access and use financial services. Today, DeFi protocols offer several benefits, including higher returns, greater security, increased accessibility, and novel investment opportunities.