NCFAs innovation and funding ecosystem

The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFi

Entrepreneur | Sarah Austin | Aug 15, 2021

NFTs DeFi and e commerce - The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFiDeFi and fintech startups are putting financial tools in the hands of the average person. NFT technology takes this a step further by offering programmable data and trustless transparency.

Markets evolved into what they are today for good reason. It is much easier for customers to visit a single location to find everything they need than for them to search around town. Mom and pop or boutique stores can be a refreshing change of pace, but most people rely on the convenience of places like Walmart or Target. It’s simply more efficient.

Centralized markets aren’t new. Crowded bazaars existed well before the internet. Sellers have always been better off following customers instead of expecting customers to follow them, even if that means paying a small fee for the privilege of displaying their goods to the wider audience gathered by the market.

See:  Goldman Sachs Files Defi ETF Application

DeFi (decentralized finance) technology allows for the inherent convenience of centralized markets without allowing the wealth and governance authority to pool into one person’s wallet. Essentially, DeFi is enabled by the blockchain, which enables permission-less, peer-to-peer transactions. This removes middlemen like banks and other large financial institutions. It lowers costs and technical barriers for entrepreneurs and individuals. Fees, documentation, and legal jurisdictions prevent many people across the world from accessing the financial tools they need to succeed. DeFi platforms circumvent the need for all of these things and allow them to transact in a secure environment.

NFTs are the driving force behind a significant portion of the DeFi infrastructure. NFTs aren’t limited to collectibles. They represent programmable bits of data stored on the blockchain. The blockchain provides a transparent, hack-proof storage solution. This equates to ownership over pieces of data that can be programmed to do different things when interacted with. Let’s break that down and demonstrate how new DeFi platforms are decentralizing e-commerce safely and efficiently.

On the most basic level, an NFT can be owned by one person, and the only way to take it away from that person is to pay for it. There is no way to duplicate it or steal it. Even after it is sold, it can be programmed to continue giving royalties to the original owner. It’s easy to see how these concepts quickly translate into e-commerce potential.

See:  KPMG Report: Canada attracts record $4.8 billion in fintech investment in H1’21: how high can it go by year end?

For example, Splyt uses NFTs to represent real world items instead of digital items and lets users create an e-commerce store from real-world items. The inventory data is stored on the blockchain, preventing any market that is listing the NFT from selling it twice. Entrepreneurs can sell NFTs and collect royalties each time that item is resold. Affiliates can sell products with NFTs for a profit and get paid immediately because of how the NFT is programmed with smart contracts.

Drops goes full DeFi turning NFTs into liquid assets that can be used for borrowing cryptocurrency. This lets users bargain with their assets the same way wealthy people like to do. Users can also stand on the other side of this transaction and put their currency in a pool for the other users to borrow from. This platform creates a bank-like environment where NFTs are the collateral, much like gold used to be. The efficiency of the blockchain lowers costs to almost nothing, ensuring that the users get as much return on their investment as possible.

Continue to the full article --> here


NCFA Jan 2018 resize - The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFi The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFiFF Logo 400 v3 - The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFicommunity social impact - The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFi

Support NCFA by Following us on Twitter!






NCFA Sign up for our newsletter - The Intersection of Ecommerce and NFTs: How NFT Technology is Changing DeFi



For more information about FFCON21: BREAKING BARRIERS, on-demand videos and ways to participate




 

Leave a Reply

Your email address will not be published. Required fields are marked *