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Monday, March 27, 2023

DeFi Update: Creative Juices Coming Through Finance

DeFi sector has started revolutionizing the world of institutionalized finance, with several cryptocurrencies coming through in many ways. The motive behind this is to bring about different methods through which they could recreate traditional instruments of finance. However, since most cryptocurrencies aren’t usually backed by something substantial but the faith of people in them, they tend to be pretty volatile.

This implies that when it comes to crypto’s loaning value, most parties wouldn’t be sure if they are actually getting a good deal out of this. 

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In order for there to be something of assurance, there needs to be a way through to secure the asset values that have been loaned- something that can be done by backing them up with a real-world value. This is where the DeFi sector comes into play, by bringing with itself the tokenization of real assets.

The process seems to be pretty simple and straightforward when we would be considering tangible assets like gold bars or buildings, but what happens when it is intellectual property?

Brownie Points For DeFi

One of the best ways to get through a stiff economy is to find financing. But, this can also get tricky, especially for first-timers. As most entrepreneurs usually discover with the passage of time, sometimes it gets much easier to simply put out a good idea, rather than hold up an entire business based on it.

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Since most enterprises are driven in a large part by the digital revolution like DeFi, several creative industries aren’t just into making it big but also processing the very idea behind it. 

Many investors of DeFi who work in creative industries can also help recognize an entrepreneur’s genius. But as a return, they might look for some ownership of the idea- which will help in research and development. 

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