Explainer Videos about 2021 trends in crypto industry

The crypto industry is developing despite periods of ups and downs. Many new projects are starting this and last year. Here are some best videos about the biggest trends in the crypto world in 2021. Let’s see how well video explainers work in tasks when complex technologies need to be explained.

DEFI perspective

DeFi (Decentralized financial services) is a group of projects that aims to create a decentralized financial system as an analog of traditional finance. DeFi projects are built on public blockchains. The DeFi ecosystem is conceived to encompass the kinds of financial services and transactions, including lending and borrowing, within decentralized structures.

Maybe, DiFi will replace traditional finance in time. Even general formulations seem to be complicated, isn’t it? What is the best way to do it? Let’s compare two animated explainer videos. First, “Basic Understanding of DeFi” by BitScreener – shows how difficult ideas could be transformed into simple ones.

The second explainer video tells almost everything you would like to know about DiFi. Honestly, this story is a bit long, still an excellent whiteboard animation helps to grab a viewer’s attention. “DEFI – The Future Of Finance” by Finematics. 

Ethereum upgrade – Proof-of-Stake

You should have heard about Ethereum, as it is the second cryptocurrency after Bitcoin. Almost all DiFi projects are built on the Ethereum platform and the next crucial trend for the crypto industry in 2021 is a major upgrade to Ethereum known as Ethereum 2.0. Ethereum 2.0 uses the Proof-of-Stake – a new algorithm for reaching consensus in blockchain transactions.

There are no miners here, only validators who can create and validate new blocks. But the validator should provide the required amount of ETH as a pledge. For that, he or she receives a reward in the form of new coins issued by the network. The new algorithm should significantly reduce energy consumption during transaction confirmation and increase network bandwidth. “What is Proof of Stake!” – this video explains the idea in as simple a way as possible. 

Chia – Proof-of-space

Another key project in 2021 – cryptocurrency Chia. Some experts claim that this project could even destroy Bitcoin. The main difference between Chia and other cryptocurrencies is the way it could be mined. The idea is similar to Ethereum 2.0. – to reduce energy consumption, but using a different approach.

The mining of Chia Coin uses a hard drive storage space, instead of video cards or processing power. The mining of Chia Coin is more energy-efficient and environmentally friendly than other cryptocurrencies. Hard drives consume several times less energy than top-level video cards. Learn better how technology works in a great video by Whiteboard Crypto. 

The Chia Coin cryptocurrency began trading on the exchange at the end of April. The price peaked at 1500 USD per coin, but dropped below 250 USD in July. Chia Network company claims to be aiming for an IPO before the end of 2021. We are almost convinced that that would enrich the number of explainer videos on the topic in time.

NFTs boom

Non-fungible tokens (NFT) are booming this year. NFT sales rose to 2.5 billion USD in the first half of 2021. These digital assets are representing an intangible item such as an image, video, and so on. NFTs are already widely being used in the gaming industry.

NFT’s are essentially smart contracts on second-generation blockchains like Ethereum and others. They can also be programmed to give the creator a royalty of every sale of his NFT. Here is a great example of an explainer video by Simply Explained that shows how NFT works. 

Facebook’s Libra

Finally, another expected event that can change our life. Facebook plans to launch Diem, a new global cryptocurrency. It should be stablecoins pegged to the US dollar. The system will allow money to be sent like a message, inside a new Facebook app called Novi and eventually within WhatsApp, Facebook Messenger, and Facebook Marketplace. Facebook’s Libra cryptocurrency explained TechCrunch in a video with 2D animation elements. 

Some final words

A lot of new technologies and projects await us. The crypto industry opens up exciting business opportunities. Sometimes it isn’t an easy task to deliver complex concepts for the average person, still explainer videos are a great way to explain your product. There is a wide variety of instruments for getting people to understand the idea better: 2D and 3D animated explainer videos, promotional or marketing videos, brand animated videos. Stay tuned!