by on August 28, 2022  in DeFI /
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The first wave of DeFi (Decentralised Finance) applications is starting to take shape and is expected to lead to a series of innovations across the web3 stack—from better privacy and decentralised identity to more efficient smart contracts and other distributed computing technologies.  Web3 is the decentralized world of smart contracts and dApps. The hype around it is so big that even though we are still early days, there is already a lot of buzz around it, and people have started building their own blockchain-based applications. DeFi (decentralized finance) developers must ultimately choose whether the technology they design will make the existing economy more efficient or the foundation of the new one.

Defi is a New Breed of Digital Asset

The idea that DeFi's efficiency can replace traditional financial back-end systems is often brought up when thinking about the real-world use cases. The FinTech revolution is just beginning to take shape. Behind DeFi are new ideas and innovations that we've never seen before. Fintech are gonna be in the foreground of it while Defi will take place on its back , replacing TradFi (Traditional Finance) as back-end systems.

The rise of Defi and Fintech will overtook TradFi. There are lots of reasons why we are seeing this trend. One reason is that Defi/Fintech products tend to be lower priced and easier to access than traditional banking products. Traditional financial institutions can be quite difficult to deal with. They have many, many rules and regulations they must adhere to. Additionally, there is a lot of red tape involved in starting a new business and getting money to fund it. This means that most people are forced to continue using traditional financial institutions rather than moving to Defi/Fintech solutions.

Combination of DeFi and Web3

With the arrival of Web 3.0, decentralized finance (DeFi) is getting more and more traction. According to a recent report from DeFi Pulse, DeFi is growing rapidly as a new category within cryptocurrency, and DeFi is now a $50 billion market. Ethereum-based protocols, such as MakerDAO, Compound, and Augur, have been dominating headlines and are generating a ton of interest, but it is still early days for this space. DeFi is still relatively small compared to the traditional banking and lending system.

But Despite that , DeFi has emerged as the most promising application of the Web3 ecosystem. It encompasses a wide range of activities such as DEX ,DApps, Decentralized Governance, and a variety of other related projects and tools. It’s quite difficult to predict how the implementations will be, because there are a lot of factors that we must take account for. However, one thing that almost everyone agrees on is that DeFi is at the intersection of blockchain and the internet. Thus in line with the Web 3 Model.

The combination of DeFi and Web3 will be the most powerful tool for dApps development. The DeFi ecosystem is built on top of Web3 technology. So, there will be strong synergies between DeFi and Web3. This combination will lead to massive adoption of Web3 technology in all kinds of business use cases.

A New Economy for Web 3.0

Developing for a purely new Web 3 native economy is like assembling a lego from zero. It can be done, but it will require a lot of effort. Since there's already an underlying infrastructure behind DeFi , its a logical move to combine those two projects to cut some corners while improving mass adoption rate for both. 
It's important to remember that if its just Web 3.0 itself , it will not create a new business revenue or economic model. The current status of web 3.0 is that it has very little traction and very little use cases on the public scale. But this is only because the general public hasn’t yet been educated on the fact that there’s even a need to use blockchain technology to achieve the end goals of the new Web 3.0. And as the general public becomes more educated on the topic, it is inevitable that the usage of decentralized technology and blockchain will skyrocket.

By combining Web 3.0 and DeFi Instead, several new products with a whole kinds of economic models emerges such as Digital Identity (ID), crypto-collectibles (NFT), Smart Contracts (blockchain), DAO (Decentralized Autonomous Organization), Decentralized Applications (DApps), and many others. Each of these economic models has its own strengths and weaknesses, but each one has one thing in common: the majority of them are still in their infancy. While some of these models are more mature than others, the majority are still in the very early stages of development, with the main problem being widespread adoption.

Integration of DeFi and Web 3.0 in Metaverse

The Metaverse represents an opportunity to solve some of the problems of the current internet. The real opportunity for the Metaverse will come when we have all the decentralized applications that live in the Ethereum network. An Ethereum-powered metaverse? It's certainly a very cool idea. However, it's hard to imagine how anyone could get started in the near future without a working prototype. I don't know if you've noticed, but all the tech people are using blockchain-based technology for some sort of purpose. They are not just using it as a buzzword.

As Blockchain technology develops and becomes widely used in financial systems, blockchain has the potential to revolutionize the entire financial system, and its applications in finance are only just beginning. With the rise of DeFi, many people are starting to realize the importance of decentralized finance and are looking for new ways to use the technology. Metaverse, which is one of the most promising projects built on top of the Ethereum blockchain, has been able to create a very strong synergy between the two, thanks to the combination of Decentralized Finance and Web 3.0. 

KunciCoin in its roadmap are combining all of these subjects into one single system. With just one wallet you can connect to many kinds of DApps. With blockchain on its back created on BSC Platform and a massive list of DApps in front ot it. Combining both DeFi and Web 3.0 model as one platform in its Metaverse journey.

GameFi as a New Model

Given the rise of social media, MMO (massively multi-player online) gaming, and virtual reality/augmented reality, the concept has been growing for some time. However, the usage of the word itself has become new, as NFT and DeFi have become more popular, and the economic meaning of this concept has become clearer.

GameFi is probably a more concrete example. Games have long attracted players through story/narrative, gameplay mechanics, and visuals/graphics. Games like Axie Infinity brought a fourth element to it. It's an in-game economy.Whenever possible, game developers use templates, modifiable frameworks, and relocatable infrastructure to create the previous three elements. If game makers want to add an economic layer, they are likely to succeed if they have a relocatable DeFi infrastructure.

KunciCoin partnered with KunciGames and KunciNFT are also joining this big industry. Creating a lot of games and combine it with DeFi as a way to embrace the GameFi industry. The game studio is focusing on creating IP ecosystem using Kunci universe lore and its world setting (“Kunciverse”). Kunci Games is currently developing their own title, series and game along with its plan to publish multiple A/AA game titles from Indonesian local developers to populate our gaming ecosystem. The DeFi platform on DoyanRebahan also helping this project to grow by inputting DeFi system in it.

GameFi highlights the fact that it is impossible to realize a monolithic DeFi marketplace where market governance is tied to the same mechanism that governs protocols.

A New Approach as a Solution

The old way is to get carried away with lobbying governance and wasting effort on devoting developer resources to DeFi integration. This will not allow it to expand beyond the financial base of the new economy.The new approach is to integrate it with Web 3.0 , allowing each project to leverage its core capabilities and focus on developing the products and services people want.

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