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.

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