What Is Blockchain?
Blockchain is a system for recording & storing information and transactions in a database that is distributed across a network of computer systems.
The blockchain database is referred to as a “ledger”, and for this reason, blockchain is also referred to as “distributed ledger technology.”
Blockchain ledgers can be made either public (like Bitcoin) or private (similar to corporate intranet networks). The blockchain ledger collects information together into units known as “blocks” that hold sets of information or data.
When a transaction is entered into the blockchain system, it is transmitted to a network of peer-to-peer computers that can be anywhere in the world. Once the transactions are confirmed to be legitimate, they are chained together in blocks that are given an exact time stamp, and a cryptographic signature called a hash.
What is artificial intelligence in simple words
The blocks create a long history of all transactions that are permanent and generally immutable, i.e., it cannot be changed. Immutability is an important feature because if one block in one chain is changed, the block fails. For example, if hackers wanted to corrupt a blockchain system, they would have to change every block in the chain across all distributed versions of the chain, which is highly unlikely from a technical perspective.
What Is Cryptocurrency?
Cryptocurrency or “crypto” (also known as virtual or digital currency) is a digitized form of currency or token transmitted on a blockchain.
There are now protocols like Polkadot which enable cross-blockchain transfers.
The number of cryptocurrencies is ever-increasing, and blockchain technology enables anyone to set up their own blockchain and a unique cryptocurrency or token.
Bitcoin, Ethereum, and other cryptocurrencies are typically purchased through cryptocurrency exchanges, which are analogous to traditional electronic trading exchanges that enable users to place orders for financial products such as stocks, bonds, currencies, commodities, and derivatives through a financial intermediary.
Depending on the exchange, you can usually purchase cryptocurrency with a debit card or bank transfer.
Many of the popular exchanges do not allow credit card purchases. Those that do charge for the privilege, and in some cases, can add 3% or more to your transaction. Additionally, even if the exchange permits using a credit card, most major card companies have prohibited purchasing cryptocurrency.
What Are Non-Fungible Tokens (NFTs)?
An NFT is a unit of digital data stored on the blockchain but differs from cryptocurrency, which is fungible and interchangeable (i.e. any one dollar bill is no different from another dollar bill in value or meaning).
NFTs are unique and noninterchangeable.
NFT is a digital certificate of authenticity. NFTs can be associated with easily reproducible items such as photos, videos, audio, and other types of digital files but have even been associated with more ephemeral things like a captioned moment in time, such as NBA Top Shot, which sells NFTs for epic plays in NBA games, or Jack Dorsey, who sold an NFT for the first tweet.
NFTs can be created, or “minted,” on various blockchains, Ethereum and Solana currently being the most common.
Ether is a cryptocurrency, but its blockchain, Ethereum, also supports NFTs, which store additional information related to the digital file or another unique item they are associated with.
This makes them work differently from ETH cryptocurrency, where the only amount, transaction date, sender, and receiver are stored on the blockchain.
Just like cryptocurrency, the NFT is controlled by a private encryption key. If that key is lost or stolen, so are the rights to cryptocurrency or NFT.
There are numerous aspects of NFTs that many find desirable, including the potential to create
additional revenue streams from a photo, audio, or another digital file, and also the ability for the creator of the NFT to receive royalties on all subsequent sales of the NFT, which generally does not exist when selling unique items using other traditional methods.
In some cases, the cost to create NFT (referred to as “minting”) costs more than the value of the NFT.
The invention of NFTs is a breakthrough for the digital world because it allows the owner to prove they own it. It is like a certificate of authenticity. This means that even if you save the image from the internet on your computer, only the owner can prove it, and everyone else can verify who is the actual owner using blockchain technology.
In NFTs, each transaction or transfer of ownership is recorded in the blockchain, so one can basically track the entire history of that piece of NFT since there is no way to modify past records.
Notably, there have already been a number of high-profile legal challenges regarding whether a minter of an NFT actually had the necessary rights (such as licenses or personal rights) to create the NFT in the first place. So, like with any other transaction, use caution, and do your due diligence when considering minting, buying, or selling an NFT.
What is Metaverse:
The metaverse can be defined as a digital environment that uses augmented reality (AR), virtual reality (VR), and blockchain, along with concepts from social media, to create rich user interaction copying the real world.