Web 3.0 :
MetaFi: A Decentralized Finance (DeFi) for MetaverseMetaFi is the synthesis of two words – Metadata and Defi. Metadata defines ownership of assets. Without Metadata, we cannot track ownership or verify transactions. In addition, Metadata provides details about other information like photos we capture on the phone, show date, and resolution. Just like that, every blockchain transaction has its Metadata. On the other hand, the Defi platform (Decentralized Finance) refers to all financial services that a decentralized network provides. We call it MetaFi, the name of a protocol and an ecosystem that combines all blockchain-based projects, such as Metaverse, GameFi, SocialFi, Web3, and NFTs. To understand Defi and the Metaverse, we should first know about MetaFi in detail. So in this article, we will cover MetaFi in detail.
What is Decentralized Finance (DeFi)?Defi is short for decentralized financial applications that run on a blockchain or a decentralized network and usually involve cryptocurrency. Defi is not as complicated as traditional finance. For example, traditional finance relies on banks to make loans and manage investments. In contrast, the Defi platform makes it possible to make loans, invest and transfer money without using traditional banks. Instead of relying on a bank to make loans, Defi uses smart contracts that can execute themselves on the fulfillment of certain conditions.
Defi is the future of finance:Defi is a decentralized financial ecosystem built on blockchain technology. It offers an entirely permissionless, open-source, and transparent system that anyone can use. There are various use cases for Defi, including gaming, asset management, lending and borrowing, data and analytics, insurance, and exchanges.
What is the Function of MetaFi?MetaFi integrates various blockchain functions into a single, interoperable ecosystem. Cryptocurrencies are crucial for MetaFi that can be used interchangeably within its ecosystem. Unfortunately, the road to widespread blockchain adoption faces a lack of interoperability and cultural biases. Thus, MetaFi uses blockchain metadata to enhance asset interoperability. Furthermore, more of these assets will be available for public viewing, understanding, and use by aggregating metadata from various blockchain protocols into a single decentralized application. The vision of MetaFi is to create an ecosystem that will make Web3 and blockchain technology more accessible to anyone, using metadata parameters for digital assets. Thus, in the future, assets can be monetized and exchanged without centralized systems only because of MetaFi. So now that you know what DeFi and MetaFi are and the importance of Metadata, let’s continue with Metaverse.
What is Metaverse?Metaverse is an immersive 3D Blockchain Virtual Reality (VR) world. Metaverse has the best features of games, social media, and business applications. Users can play games, set up a workspace, connect socially and shop around in the Metaverse.
A blockchain-integrated metaverse offers:An open and decentralized environment helps create transparent and tamper-proof systems. If you want to integrate Metaverse into your game, BloxBytes can help you, as we have already served 500+ companies in the gaming industry, including big names like VulcanForged.
Finance in MetaverseMetaverse finance, or MetaFi, is a blend of Decentralized Finance (Defi), Traditional Finance, and Centralised Finance (CeFi). Financial services are essential to the Metaverse’s growth to enable the capital formation to facilitate trade. The opportunities and economic benefits of building a metaverse are immense. For example, companies like Dolce and Gabbana made stores on the Metaverse.
How does Metaverse integrate with MetaFi?Metaverse is a Blockchain enables VR platform that creates an open-source world with its currency. MetaFi’s cryptocurrency assets are crucial to the metaverse economy.
MetaFi has two core elements:
- The interface layer makes the Metaverse experience possible
- The financial computation layer facilitates financial transactions
Metaverse benefits Users from MetaFi
- Interact, work, and conduct business virtually
- Buy, sell, or build anything on the virtual lands
- Get accessories in the virtual worlds, including wearable NFTs and consumables
- Purchase products in the Metaverse through Walmart’s virtual shopping experience
- Build dream homes in a virtual world
- Hang out with friends on land sold by other companies