Decentralized finance is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.
Non-fungible tokens are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.
Using blockchain for identity management can allow individuals to have ownership of their identity by creating a global ID to serve multiple purposes. Blockchain offers a potential solution to the above challenges by allowing users a sense of security that no third party can share their PII without their consent.
Emerging: newly formed or prominent
Ledger: a digital record that is used similarly to an accounting ledger (as for maintaining a list of transactions)
Fungible: being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account
Commodity: an economic good
Asset: the entire property of a person, association, corporation, or estate applicable or subject to the payment of debts
Metadata: data that provides information about other data
PII: personally identifiable information
