Umut Can Yurt
Title: THE INTERSECTION OF BLOCKCHAIN’S TWO NEW FRONTIERS: HOW NFTs AND DEFI CONSTITUTE VALUE TOGETHER
Supervisor: Dr. Egert Juuse, Dr. Salah Chafik
Opponent: Dr. Mari-Liis Kukk, Lucas Lemos, MA
Defense: 18 January 2023
Abstract:The present study aims to analyze the interoperability and value creation of two emerging frontiers within the blockchain ecosystem: Non-fungible tokens (NFTs) and decentralized finance. The case study of JPEGd, a protocol that integrates NFT technology into decentralized finance applications, is analyzed through interactions with several smart contracts and the collection of primary and secondary data. The analysis indicates that NFTs and DeFi are highly compatible and their interoperability unlocks innovative functionalities, such as the establishment of the novel NFT lending market. NFT lending, as the initial representation of the interaction of these technologies, arguably offers a digitalized alternative to an analogue practice: art lending. The NFT lending concept demonstrates the potential for entrepreneurs to integrate NFTs and DeFi in order to create new markets, products, and functionalities. Overall, the thesis aims to make contributions to blockchain research through realizing the value propositions of emerging phenomena within the blockchain ecosystem
Keywords: Non-fungible tokens, decentralized finance, value, online markets, innovation
