About this Research Topic
Even before the Russian-Ukrainian war, the lack of faith in the country’s markets and financial infrastructure made it an ideal case for the introduction of NFTs and DeFi, whose success pertains to removing the necessity of third-parties approving transactions. Non-fungible tokens (NFTs) are one-of-a-kind virtual tokens that serve as evidence of ownership and validity for both physical and digital assets. NFTs first gained international prominence in March 2021, when a virtual collage by artist Beeple was bought for a staggering $69 million. Since then, NFTs have developed into a multibillion-dollar business, fueled by collectors purchasing digital creations. It is no surprise that the worldwide NFT industry is expected to reach $80 billion by 2025.
According to NonFungible (2021), the primary distinction between NFTs and cryptocurrencies or other blockchain-based assets is that NFTs are non-transferable, unique, and cannot be substituted with another asset of the same value. Traditional money and cryptocurrencies like Bitcoin and Ethereum both rely on the interchangeability property; however, the first step in an NFT is the verification of ownership of a virtual asset on a blockchain, most frequently the Ethereum network. The digital asset supporting the NFT may then be sold, leading to a shift in ownership and any Bitcoin payments documented on the blockchain if the product was bought using Bitcoin. NFTs have mostly been used to monetize digital products in the sectors of art, videos, gaming, collectibles, metaverses, utility, tweets, and more recently, decentralized finance (DeFi).
Decentralized Financial (DeFi) assets refer to financial services based on smart contracts. The latter are blockchain-based self-executing agreements used to authenticate and document deals among buyers and sellers without the involvement of a middleman. DeFi’s services are intended to imitate and replace traditional financial tools for borrowing, lending, banking, and investing, but with cryptocurrency rather than government-issued money. The interest and funds attracted by DeFi from IT pioneers, crypto entrepreneurs, and investors demonstrate its expanding appeal and acceptance. According to DeFi Llama, approximately $139 billion is invested in DeFi-related contracts as of mid-May, a nearly 900 percent increase from $18 billion in January 2021.
Recently, DeFi and NFTs have grown in popularity, especially during the COVID-19 pandemic and the recent Ukrainian-Russian war. For instance, the President of the Blockchain organization of Ukraine Michael Chobanian claimed that rockets are currently destroying the country’s museums and cultural places. Ukraine is working on a new project that aims to preserve the DNA of the Ukrainian people, their culture, and history. The country is also planning to digitalize every single item of art or history in museums, NFT it, and post it on the blockchain.
According to consultancy firm Crystal Blockchain, Ukraine has already utilized cryptocurrencies and blockchain to support its resistance against Russia’s attack, collecting over $135 million in cryptocurrency from donors all around the world by mid-May. Moreover, Chobanian argued that Ukraine’s historic NFT-ization of its antiques will also indicate what is being housed, preventing valuables from being stolen or misplaced during uncertain periods like these. The act of digitization and storing an artwork as an NFT on a blockchain will serve as proof that the item existed.
This Research Topic will give a digital view into Ukraine's cultural DNA and the role of NFTs and DeFi. Submissions include but are not limited to:
- Optimization and strategic asset allocation in NFT and DeFi markets
- Blockchain, NFTs, DeFi, Tokenomics, and digital economy
-Digital marketplaces and digital platforms
- Strategic pricing of Crypto-assets (e.g., cryptocurrencies, stablecoins, NFTs, etc.)
- Experimental methods in finance to NFTs
- The effect of investor sentiment on digital asset prices
- NFT datasets and potentially innovative ideas
- The role of NFTs in DeFi
- Adoption, perception and understanding of digital assets during 2020 global pandemic as well as the during Russia-Ukraine war
- The role of traditional and digital safe havens and hedges during war crisis times
- Interlinkages of traditional and digital assets during Russia-Ukraine war
According to NonFungible (2021), the primary distinction between NFTs and cryptocurrencies or other blockchain-based assets is that NFTs are non-transferable, unique, and cannot be substituted with another asset of the same value. Traditional money and cryptocurrencies like Bitcoin and Ethereum both rely on the interchangeability property; however, the first step in an NFT is the verification of ownership of a virtual asset on a blockchain, most frequently the Ethereum network. The digital asset supporting the NFT may then be sold, leading to a shift in ownership and any Bitcoin payments documented on the blockchain if the product was bought using Bitcoin. NFTs have mostly been used to monetize digital products in the sectors of art, videos, gaming, collectibles, metaverses, utility, tweets, and more recently, decentralized finance (DeFi).
Decentralized Financial (DeFi) assets refer to financial services based on smart contracts. The latter are blockchain-based self-executing agreements used to authenticate and document deals among buyers and sellers without the involvement of a middleman. DeFi’s services are intended to imitate and replace traditional financial tools for borrowing, lending, banking, and investing, but with cryptocurrency rather than government-issued money. The interest and funds attracted by DeFi from IT pioneers, crypto entrepreneurs, and investors demonstrate its expanding appeal and acceptance. According to DeFi Llama, approximately $139 billion is invested in DeFi-related contracts as of mid-May, a nearly 900 percent increase from $18 billion in January 2021.
Recently, DeFi and NFTs have grown in popularity, especially during the COVID-19 pandemic and the recent Ukrainian-Russian war. For instance, the President of the Blockchain organization of Ukraine Michael Chobanian claimed that rockets are currently destroying the country’s museums and cultural places. Ukraine is working on a new project that aims to preserve the DNA of the Ukrainian people, their culture, and history. The country is also planning to digitalize every single item of art or history in museums, NFT it, and post it on the blockchain.
According to consultancy firm Crystal Blockchain, Ukraine has already utilized cryptocurrencies and blockchain to support its resistance against Russia’s attack, collecting over $135 million in cryptocurrency from donors all around the world by mid-May. Moreover, Chobanian argued that Ukraine’s historic NFT-ization of its antiques will also indicate what is being housed, preventing valuables from being stolen or misplaced during uncertain periods like these. The act of digitization and storing an artwork as an NFT on a blockchain will serve as proof that the item existed.
This Research Topic will give a digital view into Ukraine's cultural DNA and the role of NFTs and DeFi. Submissions include but are not limited to:
- Optimization and strategic asset allocation in NFT and DeFi markets
- Blockchain, NFTs, DeFi, Tokenomics, and digital economy
-Digital marketplaces and digital platforms
- Strategic pricing of Crypto-assets (e.g., cryptocurrencies, stablecoins, NFTs, etc.)
- Experimental methods in finance to NFTs
- The effect of investor sentiment on digital asset prices
- NFT datasets and potentially innovative ideas
- The role of NFTs in DeFi
- Adoption, perception and understanding of digital assets during 2020 global pandemic as well as the during Russia-Ukraine war
- The role of traditional and digital safe havens and hedges during war crisis times
- Interlinkages of traditional and digital assets during Russia-Ukraine war
Keywords: Defi, blockchain, cryptocurrency, NFT, bitcoin
Important Note: All contributions to this Research Topic must be within the scope of the section and journal to which they are submitted, as defined in their mission statements. Frontiers reserves the right to guide an out-of-scope manuscript to a more suitable section or journal at any stage of peer review.
