First off: understanding (a little bit about) the blockchain
Whether you’re into crypto or not, if you’re trying to understand NFTs, you might want to start with the concept of the blockchain, or at least a part of it.
If you have ever used a debit card, the process is simple: when you attempt to buy goods or services, a transaction is bound to be made.
As such, data is sent from the terminal in which you’re swiping your card to your bank which, in turn, will verify whether you have sufficient funds to purchase whatever you want or not.
Depending on your funds, the transaction will be approved or rejected. The blockchain does the same thing with cryptocurrencies and all users are collectively and unyieldingly verifying whether you have enough coin or not.
Consequently, there only one small step going from coin to NFT as the only thing the blockchain cares about is weather the buyer has enough funds or not.
The group verifies the legitimacy of every transaction, and the major difference is that, when dealing with NFTs, we’re applying the blockchain concept into something which isn’t money or currency.
By that logic, NFT functions as proof of ownership as it gets written in a public and unalterable ledger which also attests its uniqueness.
So, what exactly is an NFT?
NFT stands for Non-Fungible Token and, by definition, it means that each one of them is uniquely original, non-interchangeable, and non-replaceable.
They are one of the types of cryptographic tokens which represent ownership of digitally scarce goods such as art pieces, collectibles, virtual items within video games, music, tokenized real word assets, video footage, screenshots, etc.
What are its net properties?
Sideline tech chat: Understanding ERCs
If you want to get technical, here are different types of ERCs, if you don’t skip ahead to the next part:
The counterpoint to NFTs
Running blockchain software, minting coins, buying and selling NFTs. All blockchain activities take a toll on the environment and environmentalists have started to raise their concerns as some blockchains now require more electricity to run than some countries.
But even with the remote possibility of regulatory action, there is much more upside in the world of NFTs and in the future of blockchain tech.
NFTs are a game changer through and through as they entail undeniable benefits in terms of blockchain technology and endless possibilities for users.
As such, you will want to keep your ear to the ground regarding NFTs news because this new tech is here to stay.
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