With decentralized finance (DeFi) shining a spotlight on a fairer internet since early 2020, we stand to accomplish anything globally. We have made significant progress in the development of next-generation technology by making DeFi technology possible with the web infrastructure we use today. There has already been a third era of the internet, bringing new economic opportunities, new careers, and new opportunities for enterprise.
The rise of DeFi has led to a growing interest in non-fungible tokens (NFTs), making them more obvious as an investment opportunity. Further evidence of how NFTs contribute to a more hopeful and fulfilling Web 3.0 adoption is the rise of NFTs. Among the many benefits of blockchain technology is the democratization of the new web, while DeFi aims to make financial democratization a reality.
Web 3.0’s ideas and infrastructure have been instrumental in sparking the avalanche of NFT we have seen in recent months. The billionaire investor Mark Cuban is just one of many who believe in DeFi’s potential and use, comparing the growth of the company to that of the internet 30 years ago and relishing in its untapped potential.
In spite of DeFi’s undeniable contribution to the recent boom in NFTs, the two clearly complement each other. With NFTs, lenders can add new collateral options to the equation and even offer more complex products. In addition, projects such as Centrifuge, a protocol for decentralized asset financing, or Aavegotchi, a device for tracking the value of NFTs and interacting with other users, already combine DeFi and NFTs.
The demand for greater transparency, fairness, and open-source solutions could lead to a domino effect slow but sure that will eventually lead to Web 3.0’s global adoption. Even though the next era of the internet is still undefinable, next-generation technologies like NFTs and tokenization, coupled with a growing need for more decentralized solutions, are opening the doors for a robust and scalable web ecosystem.
A website that focuses on solutions
This new age of web is essential for this new web era to take off as DeFi adoption continues to spread globally and challenges traditional finance. It created an environment that both challenges and changes the way we interact with one another. The next generation of the web is less about technical infrastructure and more about everyday use.
With the decentralized web, the world will gain an abundance of applications and services to suit everyone’s needs, from teachers to doctors to fashion entrepreneurs. Blockchain and machine learning are being utilized by major corporations including Microsoft, Sony and Samsung, who recognize their value in building a more scalable and real-time solution through these technologies.
What is the best method to achieve this goal?
It is already important to connect Web 2.0 with Web 3.0 in order to facilitate a more open, flexible, and censorship-resistant internet. Despite some bearish trends elsewhere, DeFi continues to be a strong force in global financial markets. The total value locked in smart contracts (TVL) is still greater than $111 billion, showing that the market continues to trust decentralized financial solutions.
The heightened interest in DeFi digital assets demonstrates the global nature of Web 3.0. Since one year ago, Ether (ETH) has risen over 1,000%, proving that products from the Web 3.0 era have the potential to recreate traditional financial products in a decentralized method, and achieve the same level of success. I think it’s safe to assume that someday, these applications will bypass Wall Street brokerages, banks, and other financial institutions.
While DeFi is pushing full steam ahead with Web 3.0, it is essential to ensure that the onboarding process is seamless and effective. For Web 3.0 to succeed, enterprise organizations will need to adopt DeFi more broadly in order to accelerate learning curves associated with its enhanced and new features. For our new internet to be brilliant and useful for everyone, companies will need to provide financial support and technical expertise.
The Domino effect
You don’t have to wait for Web 3.0 anymore. It’s not just an idea, but soon to become a reality. It will still take time before these innovative technologies are a part of everyday life, but decentralized finance has paved the way for a new generation of innovative ideas that will push the limits of mainstream acceptance. DeFi can create tools that will eliminate any need for intermediaries in any field, thereby creating a platform for endless possibilities in DeFi and beyond. For the time being, NFTs are the most prominent use case at the moment.
With the adoption of blockchain technology and other cutting-edge applications, more centralized applications, traditional financial markets, and institutions will follow suit. Our current model of the web is changing, and this is for the better. Crypto will drive Web 3.0 adoption and will serve as the underpinnings of the DeFi domino effect throughout 2021.