HomeKNOWLEDGEINVESTWhat is MetaFi? Binance's Ambition with the MetaFi Ecosystem

What is MetaFi? Binance's Ambition with the MetaFi Ecosystem

Last February 15th, Binance announced the merging of 2 chains, Binance Chain and Binance Smart Chain (BSC) to become BNB Chain, and introduced the concept of MetaFi.

MetaFi will aim to build the infrastructure that powers the virtual economy in parallel with the real world.

Let's find out what is MetaFi? What will its future look like in this article?

What is MetaFi?

MetaFi is a combination of two concepts, Meta is metadata and Fi is decentralized finance (DeFi). MetaFi aims to standardize technology blockchain for traditional Web2 applications. This will create a common standard that improves interoperability between applications.

MetaFi provides DeFi infrastructure for all different types of projects like Metaverse, game fi, SocialFi, Web3 , and NFT thanks to metadata identifying property ownership.

The idea of ​​MetaFi aims to implement blockchain functions into a Meta ecosystem, which is interoperable thanks to the metadata standards used on blockchain platforms.

How does MetaFi work?

MetaFi consists of a combination of tokens, NFTs with a governance community DAO (Decentralized autonomous organization). MetaFi's goal is to build and grow a new ecosystem, based on standardized metadata, digital assets that enable mass adoption on Web3 and blockchain.

The combination of these components creates a fully parallel ecosystem serving users from all over the world via blockchain. To improve interoperability, MetaFi leverages the presence of metadata for assets on most blockchains.

For example: The NFT's metadata will usually contain a link to the image. Users can also add metadata to transactions Bitcoin for more info…

Making meatadata standards usable on any chain will make assets easily readable and categorical.

Applications of MetaFi

Virtual World

A virtual world is defined as a digital space for social, work, commercial or gaming purposes that may or may not be the same as the real world.

virtual-world

The virtual world will provide users with a place to entertain, build a house or meet with friends.

Walmart - The largest sales enterprise in the US, has drawn up the prospect of shopping on a virtual shop. Where users join the metaverse to shop for goods and services.

Marketplace

Marketplace is a decentralized marketplace that allows users to freely issue and buy NFTs. Some famous marketplace platforms today have opensea, Looks Rare, Rare...

Yield Farming NFT

Yield farming NFT is the act of users using NFT as collateral to borrow or stake NFT for profit or rent NFT to others. This will increase the value of NFTs.

fan token

fan token allowing their owners to access many different forms of benefits, be it membership in the VIP community, voting rights, the right to participate in special events...fan-token

Sports clubs, brands and other influencers can use the Binance Fan Token platform to grow their fanbase and reward their supporters.

Current limitations of MetaFi 

MetaFi is a comprehensive ecosystem based on metadata, usually located in the virtual reality world. It comes with a series of requirements for both software and hardware, making it difficult for general users and projects to access.

Other challenges come from the blockchain where MetaFi runs and operates. For MetaFi to thrive, blockchains need to provide convenient tools, reduce transaction fees, and increase scalability and transaction volume to allow easier access for both users and developers. blockchain as well as dApps.

And equally important is legality as well as clarity and transparency to protect all participants.

The future of MetaFi

The future of MetaFi is not yet open, however a few use cases have begun to unfold. An important role in MetaFi will be played by a decentralized identity management system that will provide users with simple access to their digital assets and identities.

Naming services are a tool to help solve the ongoing problem of long and complex addresses. These services will help limit human-made mistakes.

This will allow users to send their tokens to a simple address such as blogtienao.eth instead of having to enter a long Ethereum address.

There are also metaverse projects taking shape to connect the real world and the virtual world so that people can meet, exchange, build and develop further.

Summary

The above article shared about what MetaFi is. What do you think about the growth potential of MetaFi in the future? Leave a comment below for everyone to consider!

Hope the article provides you with useful information and don't forget to follow the next articles from BTA.

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