In order to make money or build a community with NFTs, we need to understand blockchain, which is the technology underpinning such tokens.
Blockchains enable and keep track of transactions. They are distributed databases shared among a number of computers within a network.
Blockchains are decentralised, meaning no single individual or organisation is in charge. They are very safe – they are difficult, if not impossible, to alter, hack or delete.
These characteristics enable blockchain technology to generate trust.
How do blockchain databases differ from traditional digital databases?
- Information storage: data is stored in blocks, rather than structured into tables. New data is entered into a new block, and blocks filled with data are chained together in chronological order, hence the name ‘blockchains’.
- Blockchains permanently record and timestamp data.
How are blockchains used?
There are and will be multiple uses of blockchain, including:
- Web 3.0, a decentralised iteration of the world wide web
- Digital proof of ownership
- Digital collectibility
- Cryptocurrencies
- Non-custodial – personal, private items, such as keys and passwords, which allow users to hold and own funds, stored in encrypted wallets offline (what’s known as ‘cold storage’)
- Tickets, eg for flights, events, gigs
- NFTs
- Smart contracts, which are self-executing and decentralised
What is the metaverse?
Republic Realm, the investment platform, defines it as:
An alternate digital reality where people socialise, work, play, and transact. Metaverses built on the blockchain are self-contained virtual cities and economies that simulate real-world interactions.
Further reading: