What are NFTs? What exactly is cryptocurrency? Have you ever wondered what are they used for and how to get in on the action? Well, you’re about to find out!
Cryptocurrency, at its center, cryptocurrency is typically dispersed digital money intended for use online. Bitcoin, which debuted in 2008, was the first cryptocurrency, and it is still by far the most popular, impactful, and well-known. Since then, Bitcoin and other cryptocurrencies have grown in popularity as digital alternatives to government-issued money.
Cryptocurrencies are not typically issued or monitored by a government or other central authority. Peer-to-peer networks of computers open-source software manage them. In general, anyone who wants to join is welcome to do so. Now since no government or no higher authority is involved, how is cryptocurrency secure? It’s safe because all transactions are validated by a blockchain technology, which is very similar to a bank’s balance sheet.
It is not controlled by any firm, nation, or third party. A blockchain is a game-changing technology that has only recently been made possible by decades of computer programming and arithmetical advances. A very crucial point regarding crypto is that regardless of where you were born or where you live, digital currencies provide equal opportunity. You have the same crypto access as everyone else if you have a smartphone or another internet-connected device.
Now shifting to giving you an insight about NFTs, it is an abbreviation for “non-fungible token.” An NFT is a digital asset that interconnects possession to one-of-a-kind physical or digital items such as works of art, music, or videos. NFTs can be thought of as modern-day trinkets. They are purchased and sold online and serve as digital proof of ownership for any given item. NFTs are securely documented on a blockchain — the same technology that underpins cryptocurrencies — ensuring that the asset is unique. The technology will make it impossible to alter or fake NFTs.
When you purchase an NFT, others may be capable of making copies of the image, video, or digital item that you own. However, similar to purchasing a one-of-a-kind piece of art or a limited-edition print, the original will always be more precious.