We hear about Blockchain, Crypto-currencies, NFT or Metavers, but What is the connection between all these concepts?
What is a cryptocurrency?
A cryptocurrency is a currency digital and decentralized. She exchanges peer-to-peer with no trusted third party like banks. These currencies have no physical backing and are not regulated by any central body. For some this is independent operation is reassuring because it makes it possible to avoid monetary manipulation by central banks or states (so there is no excessive money creation, responsible for certain crises, etc.). However, this dimension also needs to be put into perspective because: not all cryptocurrencies can lay claim to the same stability and future prospects.
Read more: Expert opinion on cryptocurrencies: history, challenges and limits
What is the value of a cryptocurrency?
Although they are often denounced for their volatility, it is essential to understand that: behind every crypto there is a project† Like all projects, some are promising, others risky, and there are obvious scams… It is therefore necessary, before investing in a crypto, to inquire carefully about the underlying project to know if it will evolve over time. can evolve and why not revolutionize a field.
An example is needed to understand it better. The project ETHEREUM lies in the commissioning of a network of independent computers in the world that work instead of large corporate servers like facebook. Therefore, the Users’ personal data is no longer in the hands of these giants but distributed around the world through several independent private computers.
What is Blockchain?
Every cryptocurrency has its blockchain (which uses algorithms) and this is the famous one Bitcoin who gave birth to the first blockchain in 2009†
It is important to understand what the ” mining because it is on this system that the blockchain is based. In reality, everyone hosts Blockchain by mining and this is what it allows secure the system and have full transparency.
When we say that this system is completely transparent, it is because anyone can know at any time how many bitcoins have been transferred from such an address to such an address.
Mining thus makes it possible to run the blockchain: miners make their computing power available with their machines (powerful computers) who validate the transactions?† But what is the importance for minors? Every time their machine manages to decrypt a transaction, they receive a commission on calculated transactions.
What is an NFT?
NFT stands for Non-fungible token (Non-Fungible Token) and relies on the uniqueness and rarity of a digital object which is therefore not interchangeable. we talk about digital property : I can hold for example the first published tweet by one of the co-founders or owner a special weapon (available in one copy) in a video game.
But how can you be sure that you are the owner? Every NFT is traceable in the blockchain what makes the object unique.
Read more: The key to understanding NFTs!
Where does the value of an NFT come from?
The numerical value has been around for a long time: it is customary to pay with points earned in the game to access weapons or special accessories…
But here, NFTs are revolutionizing digital value because they depend on scarcity. you can be the only one who owns a weapon or a power in your favorite game, who owns the last digital pair released by Nike, etc…
When an artist creates a digital work and offers it for sale, it is possible to track his entire journey on the blockchain and thus determine the true holder of the unique work. So no, if you take a simple screenshot of the work you can’t own it, luckily!
What is METAVERS?
those last weeks, facebook name created by changing his name to META, but what exactly is a metaverse? It’s a virtual universe, parallel
Meta = further
To = universe
Metaverse = beyond the universe
Today we can live the experience of the metaverse with the virtual reality headsets which are always more perfected.
The metaverse is an immersive open world, where it is possible to enter and exit freely. Everyone is represented by an avatar, chooses their appearance and has the impression of really being in this space. Anyway, this parallel world must be sustainable in the sense that if we create value there, we have to find it when we return to this universe. This is true the blockchain and cryptocurrencies because they are the ones that are legit in the virtual universe : they replace the monetary system.
Blockchain and cryptocurrency bridge the gap between reality and virtual : you can own a valuable object in a virtual universe and sell it on to own cryptocurrency that you convert in real life into euros or dollars, for example.
Read more: Facebook group name change
The last word
I hope this article has enabled you to better understand these concepts, which I think will become soon major digital challenges† To some it may still seem far away or a little scary, but they are just tools and they are not necessarily good or bad. Everything will depend on the use we make of it!