Decentralized finance and Non-Fungible Tokens

Abstract

In this chapter, we delve into Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) as emerging mechanisms for blockchain fundraising. We discuss the concept of DeFi, its key components, and how Decentralized Exchanges (DEXs) enable a novel form of blockchain funding - Initial DEX Offerings (IDOs). Additionally, we investigate NFTs, examining their evolution and diverse applications. The shift from Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs) to IDOs and NFTs is analysed, highlighting the increased security, transparency, and flexibility these mechanisms offer.