InfoFi, or information finance, represents a new direction in decentralized finance, focusing on the monetization and trading of quality data as an asset.
What is InfoFi?
InfoFi, short for Information Finance, is a new genre within finance that focuses on monetizing and trading quality data. This data can include blockchain activity, market trends, and social sentiment, making it useful for enhancing decision-making and improving DeFi processes. The system heavily utilizes artificial intelligence to process and analyze data, while blockchain is applied to tokenize this information, enabling trading.
On-chain Activity at the Heart of InfoFi
InfoFi projects are beginning to gain attention due to the increased interest in applying AI to DeFi. A prime example is Bubblemaps, which is a visual tool for analyzing on-chain information launched in 2021. The platform allows users to track token distribution dynamics and wallet interactions, revealing hidden connections and insider groups within the community. The recent update to Bubblemaps V2 has enabled users to track real-time data on new blockchains like Sonic and The Open Network (TON).
What’s Next for InfoFi?
It remains unclear whether InfoFi will become the next major trend in Web3. However, the intersection of blockchain, AI, and data creates numerous potential applications, as evidenced by the number of projects operating under this umbrella. As InfoFi continues to evolve, it appears prudent to keep an eye on its developments.
InfoFi is paving the way for a new trend in decentralized finance, where data becomes a tangible value. With growing interest in projects like Bubblemaps and Inferium, the potential for InfoFi to expand seems clear.
