What is a blockchain and how does it work?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger.

What is blockchain used for?

Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, tracking digital use and payments to content creators, such as wireless users or musicians.

What is an NFT?

A non-fungible token is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. They can be thought of as certificates of ownership for virtual or physical assets, used to represent items such as photos, videos, audio, and more.

How can an NFT be a physical asset?

NFTs can denote the right to take physical custody of an object. Both the physical item and the NFT are transferred as a single asset.

Why should I care about NFTs?

NFTs are interesting because their uniqueness and ownership can be verified, they can be utilized across applications developed by different companies, and they can be traded easily through secondary markets. These features open up possibilities for new use cases and business models.

What determines an NFT’s value?

The three key factors to consider when evaluating the intrinsic value of an NFT are rarity, utility, and tangibility. The value of an NFT also differs for short- or long-term holding, depending on the asset the NFT represents.

Why would I want an NFT with my original purchase?

NFTs not only show ownership but can establish historical provenance. This will ensure the piece that you are buying was “minted” by the artist or dealer and is authentic. Questions regarding the source of a piece or the artist are resolved when it is paired with an NFT.

NFTs can also include versions of the artwork that were not included with the physical asset. Many artists do final edits and/or colour digitally after the piece is scanned. The owner can now view these edits while viewing the asset in their crypto wallet.

How do I buy an NFT?

Before buying an NFT you will need either an Ethereum or Solana wallet. Why? Because most non-fungible tokens run on the Ethereum blockchain, with Solana quickly catching up. Ethereum, unlike the Bitcoin network, allows users to deploy something called "smart contracts."

What is a smart contract?

Smart contracts don't have anything to do with legal paperwork per se (though they can facilitate binding agreements). Instead, a smart contract is a program that runs on the blockchain. Without getting too technical, smart contracts are important for NFTs because they can store important data about the token. For example, if you purchase an NFT, it will contain data about who owned it, when they sold it and how much.

How do I sell an NFT?

You can resell NFTs on the secondary market, just like anything else you would own. To do so, make sure the NFT in question is in the crypto wallet paired with your marketplace of choice, and put it up for sale.

Where can I download a crypto wallet?

You can download a Metamask wallet for Ethereum NFTs here: https://metamask.io/download and for Solana NFTs : https://phantom.app/

What is the metaverse?

Metaverse, a term first coined in science fiction, is a combination of the prefix "meta", meaning beyond, and "universe". It refers to shared virtual worlds where land, buildings, avatars and even names can be bought and sold, often using cryptocurrency.

Why is the metaverse important?

The word "Metaverse" is made up of the prefix "meta" (meaning beyond) and the stem "verse" (a back-formation from "universe"); the term is typically used to describe the concept of a future iteration of the internet, made up of persistent, shared, 3D virtual spaces linked into a perceived virtual universe.

An example of the metaverse?

Decentraland is a 3D space where you can build virtual worlds, play games, explore museums packed with NFT art, attend live concerts, etc. It works in a standard web browser if you have the MetaMask extension installed to give you access to the cryptocurrency and NFT features. You can buy and sell properties, create and sell virtual art for the art galleries, or build worlds. Several companies have invested in land in Decentraland, and some of them may be willing to pay skilled builders to develop it.

Decentraland has even got into the conference space, and has proven that there are interesting opportunities to create unique and creative booth experiences for vendors.

What is DeFi?

Decentralized finance, or DeFi, is a system by which financial products become available on a public decentralized blockchain network. That makes them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi. More specifically, DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction.