What Are NFTs and How Can They Be Used in Decentralized Finance? DEFI Explained

So what are NFTs all about? And how can they be used in decentralized finance? You’ll find answers to these questions in this video.
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Okay, so let’s start with what NFTs actually are. NFTs stand for non-fungible tokens and they are one of the types of cryptographic tokens that can represent ownership of digitally scarce goods such as pieces of art or collectibles.
“Non-fungible” is not a very popular word so let’s see what it really means.
In economics, fungibility is the characteristic of goods or commodities where each individual unit is interchangeable and indistinguishable from each other.
Although NFTs can be implemented on any blockchain that supports smart contract programming, the most noticeable examples are ERC-721 and ERC-1155 standards on Ethereum.
When it comes to DeFi, NFTs can unlock even more potential for decentralized finance. Currently in DeFi, the vast majority of DeFi lending protocols are collateralized. One of the most interesting ideas is to use NFTs as collateral. This means that now you’d be able to supply an NFT representing a piece of art, digital land or even a tokenised real estate, as collateral and borrow money against it.
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[@Finematics]

💛Check out our Gitcoin Grant (quadratic funding) ► gitcoin.co/grants/1158/finematics-defi-education ❓What do you think about the future of NFT? 👍Hit the like button if you enjoyed this video 🐦Follow Finematics on Twitter ► twitter.com/finematics 🙌Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics

[@Torterra_ghahhyhiHd]

i think nft will be the next generation of money laundry as hollywood is crushing down. Steven Spielberg . ask stacy helberg she know and said on kayser report how broker colude bookkeeper to make it look bankrupt to avoid paying taxes and to money laundry. whats behind inonfencive cripto kitty.

[@fatjongjoka1990]

I didn't catch the difference with the first and second NFT loans , so basically in the first and in the second example if the borrower doesn't pay he just lose the NFT and thats all or no?

[@pecojacobs6488]

Holy molly mom fumgible@

[@denalicoin382]

@@fatjongjoka1990 basically.

[@Dray7777]

please open a lbry channel. Better than You Tube. Decentralised, no adds and get tipped in crypto cryptos

[@ZayneEnterprizes]

this was a well-thought out video. it’s nice to see people trying to educate others in this space instead of just shilling the next altcoin gem they bought.

[@Finematics]

thanks!!

[@macdeep8523]

@@Finematics Godsend

[@compteofficiel4112]

the "crypto community" is full of inspiring idealistic people doing a lot of work for free...it is very heartwarming on top of being useful...it is cool to be a part of it

[@ZayneEnterprizes]

@@compteofficiel4112 Incredible time to be alive

[@magnushodge9456]

I got help from thechinahacks financially .Thanks to their platform i paid my debts

[@sarfrazali2947]

It's 1am and this is FASCINATING!

[@FOT2010]

Go to sleep bruh

[@Urace97]

The fact that it is 1am for me😂😂💪🏿💯

[@shopifiepro7474]

Facts it’s 3am for me

[@Urace97]

@@shopifiepro7474 im glad we’re here, we’ll be im the top 1% in 10 years Don’t forget to execute 💪🏿💪🏿💪🏿

[@madesimple4690]

1:40 am

[@RichoGoMa]

I will wait for the "NFTs explained to a 6 year old" video.

[@NicoYearwood]

😂😂 bro I was thinking the same thing like 3 minutes in.

[@Electr0fleur]

TOP COMMENT - I FEEL DUMB AS F AND I AM INTO CRYPTO FOR YEARS NOW OMG HELP

[@teetateeta8104]

Yea I still don’t get it for some reason 🤦🏾‍♂️

[@joeovip]

Jajajaja please let us know if you find it.

[@KingBorris]

This is the 6 year old explanation

[@GagnezVizz]

One of the best videos on NFT's + DeFi I've seen so far. Quality content. Thanks!

[@gamophyte]

This guy sounds like he's a 17th century sneaky thief in Paris.

[@superjboy16]

Lol are you talking about Arsene Lupin? xD

[@fracasopina2121]

Hes bout to steal your en ef stis

[@andrewmartin147]

He's got a real Aladdin vibe!

[@shaynasinopoli2418]

Welcome to the Thieves Guild.

[@Kurdishkorean]

Dead 😆

[@TL1423]

This was dope. Thank you for your time to do this bro. You're appreciated!

[@patrickmoore3672]

This guy draws really fast.

[@certified_fool]

It's sped up duh 😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😆😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

[@lukewhiting3025]

😂😂

[@leandromafe]

No one is actually drawing. It's just an animation

[@patrickmoore3672]

@@leandromafe Nuh uh. I don’t believe you.

[@lukeg8466]

@@leandromafe no your worng

[@tannnerrr]

This is so cool the more I read/learn about it the more I get how big this can be

[@free.breaker]

Always educational, cheers big!

[@cryptomike2846]

Thank you so much! After this video i have completely understood that i still have no idea how NFTs work 😂

[@kevlarshanahan1087]

Well put Mike

[@eazypeazy8602]

One of the potential I see for NFTs is they can be implemented in real-estate market each nft representing value of land/property trading would be really convenient

[@CorleneGreenwood]

only problem with that, is that nfts are non divisible.

[@je9625]

Very good video. I am however unconvinced about the value of NFTs in their present form. Most are just a variation on pet rocks. Maybe in future we will see a more rational approach and development of NFTs with value and enforceability.

[@cconyap]

nfts staying as mere nfts without use are worthless. however i believe they will soon be used for the developping metaverse

[@zbs12345]

Very educational. Yes, digital land title is an application for this technology.

[@Silentnite85]

I'm so excited for SYNC!

[@Dannydrinkbottom]

This is one of my favorite channels. Thank you for everything.

[@benjaminronns]

Great video. I'm just shocked at how people are creating simple gifs in nft and selling them for even 10k. There is surely alot of hype around nft

[@brentglaser1425]

Well done and so easy to understand. Thanks!

[@sajawalshahzad6757]

Really appreciate dude you are doing great Job 🙂

[@Finematics]

Thank you!! :)

[@OlegIzyumenko]

NFTs + DeFi = Aavegotchi, just one example of an interesting innovation in this space.

[@keangroup]

Thanks for the explanation.

[@najah68]

Excellent video. Explains clearly what FT and NFT are, and points at applications and marketplace. About the voice, no particular remark except that it is special and could be an NFT by itself with great value !

[@Finematics]

Thank you! :)

[@nftads]

Great video, concise and well presented

[@janicebeare8127]

Very well explained! Thanks!

[@akhilkumar4825]

Amazing! Would love to see more applications of using NFT collateral

[@b0bbarella]

Really good overview - best I’ve seen thanks for creating such good quality content

[@JournalduCoinFR]

Simply the best DeFi channel out there. Proud contributor here !

[@Finematics]

Thank you! :)

[@xbrilliancex5186]

Thank you for giving out this free game🙏🏾... You just saved my life & many other’s 💯

[@richieperry6129]

I need more info on this cuz I’m grasping bits as pieces

[@pronaldpro3914]

Like always great explanation!! Love your videos! Will comment and like the videos

[@Finematics]

Awesome, thank you Ronald!

[@roronoa270]

Who else is here because of Gary Vee ?

[@yelaghaba]

OMG! Me😂

[@toddudale3332]

Yes 🤣🤣🤣

[@TradeBrigade]

Going down the rabbit hole.

[@ARTHUR_NYBARBER]

Me

[@dpalmer7323]

Yup....

[@beatsonpage6304]

Amazing video! Curious what tool do you use for this kind of videos?

[@jhadesdev9576]

Im going to binge watch your channel. The explanation on nfts is good but i still dont know how they can work. How can art be on the blockchain, like a drawing? Is it a code that matches some QR code on the frame of a physical painting? How is the link made between nfts and physical objects?

[@JacobWolfman]

@@prontomatias3081 but when something is digital art, why can’t you just save the jpeg from your browser and now you also have a copy? A baseball card is a physical good.

[@adamarad2090]

I can tell this video is well thought out...i had no idea what NFTs were but kept seeing...the video explained it well...so this is like Ready Player One type of stuff?

[@michaelmcginley7287]

Love these videos. Amazing work!

[@Finematics]

Thanks a lot! :)

[@harrisonsearle7442]

So insightful. I learned a lot watching this. Thank you, FInematics!

[@Finematics]

Thanks. Great to hear!

[@AlexWinkler]

Awesome video - Best way to learn more is trying to get involved.

[@makaylabest2566]

Thank you!!!

[@trevorryder9732]

Omg I asked you to make a video about NFTs! Thank you!

[@Finematics]

You're welcome! :)

[@mikew6162]

Love your presentation. Can you please tell me what program you used make it? the writing on white board is so cool! Thanks

[@a.b.3030]

Awesome teaching skills. Very helpful examples. Thx so much for your work.

[@Finematics]

Thanks. Glad it was helpful!

[@agoetz21]

Love your videos I can't get enough!!!

[@plox2030]

Dear Finematics, could you please do a video on what Stablecredit is, and how/if it will work? I've listened to 3 podcasts on it and just can't wrap my head around it!

[@Finematics]

Yes, this could be a good topic. I made a little drawing on it. You can find it on my twitter. It's not a full explanation but it shows some basic concepts.

[@macdeep8523]

@@Finematics selfless service

[@lamxiujing8206]

Thanks for making these topics easy to understand for us.

[@Finematics]

You're welcome! :)

[@rick2402]

this is the best video on the topic. thank you!

[@aw1444]

Thank you for your well structured Information

[@Finematics]

You're welcome! :)

[@davidjames3164]

Thanks for the video

[@Konghibiki]

I'm looking forward for upcoming NFT products. Pleas keep update. Thank you very much for the great presentation.

[@Leonisel]

I'm sure this has been figured out but other than using blockchain for healthcare databases and oracles to move data between them, could NFTs be used as a cryptographic means to safely transfer the data between blockchains/databases? Or would it be a mix of that and smart contracts? I hope I'm making sense, I'm learning about all this space as fast as I can lol

[@Unown65]

Great videos and very helpful! Thank you and keep it up!!

[@Finematics]

Thanks!!

[@aglan]

Nice!!

[@keyone4582]

So useful, Thanks!

[@Finematics]

You're welcome!

[@fErSarr]

I get why people would buy items for video games and digital land space that can be used to earn via advertising. But why would someone buy a simple digital image/art that can be just copied/multiplied easily? it sounds like an item that can be made fungible.

[@percyblok6014]

Tokenization of tangible goods that can be leveraged or loaned against. Sports cars, houses, boats, time shares while not in use, reservations on cruise, etc, etc....

[@fErSarr]

@@percyblok6014 I agree those are good uses. But I was referring to digital images/art that can be copied easily

[@dianaroyer6467]

Thanks for explaining this 😍😍

[@Finematics]

You're welcome! :)

[@bigjohn9544]

So great thanks for content!

[@Finematics]

thanks for watching! :)

[@charleyarchuleta4932]

I’m an instant fan!!! I’ll refer you to everyone I know.

[@Finematics]

thanks!

[@vaylx2253]

Great job as usual. Thanks.

[@Finematics]

thanks! :)

[@toshbel]

Thank you.. 💐

[@ramingr]

Mindblowingly great video.

[@God-is-Great777]

If some how the real-estate is tokenized on blockchain with property deed and estimated value from the town/city on an oracle, then it may make sense to use it as a collateral to borrow in crypto space. It has be done legally, which is very complex to take possession of someone property who defaults on the loan.

[@erikevertsen9714]

Great video!

[@johnfong9703]

Insightful content in plain English that is digestible and retainable with helpful graphics.

[@PercyOrdonez]

Amazing information. Thank you for putting this together.

[@Finematics]

you're welcome! :)

[@varungudisena9463]

good explanation

[@julsgud]

Amazing! Thanks for sharing so much of your knowledge. Tree Defi is the most interesting use of NFTs I've heard about lately 🌳 Curious to find out about other applications that are evolving the space from store of value to something with a bigger bang 🤔

[@yuliyacher67]

Thank you!

[@weownthesteets]

Amazing channnel ! Keep up the great work

[@Finematics]

Thank you! Will do!

[@almac2811]

Your channel is fantastic!

[@Finematics]

thank you!

[@godini69]

I love your channel man. Can you go into how derivatives work on blockchain and how they are priced?

[@Finematics]

thanks! yes, sounds like a good idea for a future video :)

[@CarlosBruguera]

Do you know what would be cool? A video on _why_ uneven Balancer pools mitigate impermanent loss, or why uneven pools are used in general. I think I've seen some Balancer videos around already, but perhaps not on this particular subject.

[@m.r.9493]

Very good video! Keep going on! Thank you.

[@Finematics]

Thank you! I will! :)

[@justis4143]

Way ahead of the curve

[@TheCrazydutchbastard]

Is it just me or do NFT’s seem like something someone made up as a joke, but it was mistakenly taken seriously?

[@aldrinjobai6357]

if there is a 0.01% chance of potential something can make money, it will. Some people will make sure it happens. No matter how worthless it is. Dont get me wrong, nft has incredible use cases in games and some other stuff. But a picture of a broccoli taken in a phone being worth thousands of dollars just in the trust that the next person will buy it for a higher price is barbaric....but also fascinating. Interesting ways people find ways to make money.

[@financialchimes4546]

@@seth9355 If you actually watched the video you'll know they weren't created by ENJIN, as ERC-721 was created well before ERC-1155. Furthermore, ERC-721 and ERC-1155 are standards about NFTs, but NFTs were available before these standards existed.

[@tigertigercrypto]

Excellently presented. 🚀🚀🚀

[@Finematics]

Thanks! 🙌

[@favouralikwe2177]

Thank you so much

[@Finematics]

You're welcome!

[@Raven-ql3im]

Very nice content👌 and bro, your voice is so nice. Kinda relaxing

[@joshhodge643]

Awesome video!!! Keep it up!

[@mmontzzee]

thank youuu!

[@CasasChicago]

the information is hypnotizing and is leading us down a rabbit hole that has no end.

[@saularroyo95]

NFTs could be a tool to implement mortgages, car loans or even leasing. We'll see.

[@aristoswashere]

no

[@aldrinjobai6357]

i think the question is, do we actually need it in places thats working fine without it.

[@aristoswashere]

@@aldrinjobai6357 exactly

[@saularroyo95]

@aldrin jobai yes, the costs of registering those are through the roof, and have been since incepcion. I want that money in my pocket. Of course.

[@cyberfiles8076]

You have some of the best videos I've found educating on the defi and crypto space. Thank you, these are valuable resources for me.

[@Finematics]

Thank you! 💛

[@howardnguyenx]

Great job.

[@drifella]

Is there a video explaining how an image or video transfers to code blockchain / wallet, and back to exchange you see the image again?

[@OddAntSounds]

I am not sure but there could be quite different methods for that, it depends on the underlying project. For example some NFTs are stored on a centralized database and only the hex code referencing the product is stored on the blockchain. NFTs could be located on a miner computer, similar to FileCoin protocol but for nonfungibles. NFTs could be located pieces by pieces on a peer-to-peer network, similar to IPFS. If the image is small enough, could be stored in a block directly. Not sure about the last three statements tho, I am just sharing ideas. If someone knows how it works I would also be glad to know.

[@masirlebouki9988]

I'm happy to join a project like this, I think it will be a very extraordinary in futur.

[@parth1210]

I had questions before coming to this video. Now I have even more questions. I don't understand most of it 😕 😪

[@admayet]

Hi would you be able to help me answer a couple of questions for University?The questions are :Can you think of a use case for NFTs that has not been explored yet. Q2:How could this application benefit emerging markets in particular? Thank yoy

[@charlesreese7513]

i am going to build my own coin and us it for piece ownership of an actual aviation business. thank you for the education. any suggestions or more education is very appreciated.

[@slapsoil9574]

u the best pls make more

[@franciscobarbajr7567]

Do you think you could do an updated video on NFT’s considering the market boom pls

[@abhishekjain5995]

Great content!!’

[@Finematics]

thanks!

[@tuka99norway]

Dude i love you

[@Grandpa-Beats]

These videos are priceless. Thanks for the info 🙏🏼

[@Finematics]

Thanks! You're welcome :)

[@miningspec]

Look in to Verus, Its DeFi and NFTs

[@hobonickel840]

this is how the stock market merges with economy on blockchain... as well as will help usher in digital ID's... many years ago I heard Andreas Antonopolous talk about tokenization of everything in the future ...this is how it happens

[@PhongNguyen-tp7lg]

Hey finally Im still confused! ... so what is the difference between NFT tokens listed on some major crypto exchanges & the Items encrypted by NFT technology please?

[@gayatrijolly3450]

Does anyone know what tool/software I can use to make an explainer video of this kind? (On another topic, but just need to find the right tool)

[@Circle1Auditing]

Great video

[@Finematics]

Thanks!

[@bryanscantling106]

Its 2 am and still fascinating!

[@iampatoshi4537]

Thanks

[@fg.salomon]

I feel like I am back to school, where I dont understand anything the teacher is saying

[@TheNameOfJesus]

I have the same feeling. This video seems to be true and accurate, but it's really not meant for the average person. My friends and family come to me to explain high tech issues to them, but this video hasn't helped me to do that yet on this subject.

[@RichoGoMa]

Same here! Waiting for the "nfts explained to a 6 year old" video

[@fg.salomon]

@@RichoGoMa I think 6 ys old have better understanding of this, we need the NFTs for 40 years and above tutorial hahah

[@Tubemanjac]

I wonder how many politicians understand this or are even aware of its existence or its potential.

[@TheNameOfJesus]

@@Tubemanjac So far politicians can't even agree on the question "Is gold money?" That is, can you use gold to purchase something, like you can with money. Some say yes, some say no. But for those who say it isn't, then cryptocurrency almost certainly is not either.