A Guide to Blockchain Technology, Cryptocurrency, & NFTs

When it comes to the progress of technology, there are a few key players. One advancement that has made big waves in both tech and the larger society is blockchain. The technology of blockchain has made it possible to prove ownership of digital assets and content. Whether you are skeptical about the advancements of tech or welcome it all, it’s necessary to keep track of how these things are changing life and human civilization. So, in that interest, below is a guide to blockchain technology, cryptocurrency, and non-fungible tokens (NFTs).

Blockchain

Blockchain technology is a digital database that uses lists of transactional records known as blocks. This is an encrypted database that cannot be edited by anyone. Blockchain is what makes the transfer of digital assets possible. No one would be able to buy or sell digital assets without huge risk. This makes blockchain technology inherently decentralized, offering the ability to buy and sell items with real value without being regulated by a government or financial institution. Blocks are found in what is called an immutable ledger.

Immutable Ledgers

A blockchain is essentially an immutable public ledger. No one can edit the lines that show the transactions. So, even if you are the current owner of the digital asset, you can see exactly who owned it before and for how long. You can even see what the assets were bought and sold for. Immutable ledgers provide the information you need to make a wise choice on your purchase of a digital asset. Right now, blockchain technology and immutable ledgers are used for two main assets—cryptocurrency and non-fungible tokens.

Cryptocurrency

Cryptocurrency is a decentralized, encrypted currency. It is created by minting tokens, which is done in a ledger. The value of the coin is based on how much is available and how popular it is. The market isn’t dictated by a government or a third-party financial institution. In the case of Bitcoin, people have been mining it on computers for a while, but that has become increasingly unviable.

Not only is it incredibly costly and wasteful to mine cryptocurrency, but the ability to trade cryptocurrencies has also exploded. With the ability to prove ownership, buy, sell, and trade cryptocurrencies for each other and tangible assets, it has become clear that cryptocurrency is legitimate overall. Some are more legitimate than others, but the skepticism remains.

NFTs

People are even more skeptical about non-fungible tokens (NFTs) than they are about cryptocurrency. NFTs use blockchain technology to prove ownership of a particular piece of digital content, a file, and another intangible asset. NFTs are basically the unique version of fungible tokens like cryptocurrencies.

You can mint tokens that are reproduced, but you can also authenticate a completely original NFT that is unique and can be owned by anyone. People have already begun to create artwork and digital content specifically for this model, but the value is often inflated. This begs the question, what will happen in the future?

Future of Blockchain

The future of blockchain technology is difficult to predict. Cryptocurrencies and NFTs will become more widely available for the average person, and the prices will go down, but there is no stopping anyone from continuing this trend and making rarer blockchain assets ever. Furthermore, governments and financial bodies around the world are struggling to figure out how to go about this decentralized way of owning things. When intangible assets can be transferred into very tangible wealth, there is a grey area that a lot of our financial system is built upon. Blockchain could solve nearly all of our financial problems, but it could also create a lot more.

Blockchain, cryptocurrency, NFTs, and the future is a very new technology that remains to be seen, but it doesn’t matter if you are interested in them or not. It is changing our world and will continue to augment human society as time goes on. Being afraid of the future doesn’t help anything. We all need to keep a close eye on these types of developments to ensure that we can create a better, healthier, fairer, and more successful world. Blockchain has real potential to change things for the better if we all make an effort to guide it in that direction.