Certain terms such as Blockchain, Crypto, GameFi, NFTs, DAO,… are ubiquitous on many parts of social media and it’s really hard for those of you who were just being raised awareness about these developing trends to comprehend. This post was created to explain these terms in the simplest way so that your mother could also understand.
What is Blockchain?
Well, as its name, Blockchain is a type of technology in accordance with storing data. The data is put into blocks of the chain. All blocks are linked with the previous and following block so that if there’s anybody hoping to change one block of the chain, he or she will have to change all blocks before it which is nearly impossible as the length of the chain.
In addition, the blockchain has many versions of it at the same time in a system of nodes. A node is responsible for holding another version of the blockchain database. Therefore, if the database of one node is broken or changed, it can be restored by being compared and replaced by other nodes. Hacking into the blockchain requires a hacker to break into more than 1/2 of the nodes which is impracticable and worthless.
To sum up, Blockchain:
- is a method of storing data
- can’t be hacked or changed
What are Cryptos?
Crypto is a kind of virtual currency built on blockchain technology. The initial crypto – Bitcoin was first introduced in 2008 at the same time as the global economic recession. At that time, people lost their faith in the money control of governments so Bitcoin was born to tackle this problem. In the beginning, Bitcoin was built with the idea of leaving individuals the control its price through the rule of supply and demand. Although today, the main role in controlling the price of Bitcoin and crypto is in governments’ hands.
Apart from the initial purpose, Bitcoin and cryptos now are supposed to be kinds of high-risk assets as their flexibility in the prices.
All crypto transactions are transparent and everybody has rights to see the transaction history of any wallet as long as they have the wallet addresses. Besides, creating a wallet doesn’t require the owner’s identity information, and transactions are executed by dozens of nodes. Therefore, every transaction is incognito and it also removes the role of third parties in handling transactions.
There are many other kinds of cryptos apart from bitcoin such as Ethereum, BNB, Tether, USD Coin,… which are called Altcoin
In short, a Crypto:
- is built on blockchain technology
- is a type of high-risk assets
- has its transactions transparent and incognito
What are NFTs?
NFT stands for Non-fungible token. An NFT is a kind of asset that is unique and can’t be replaced with something else. NFTs are parts of blockchain systems, most of them are on Ethereum blockchain.
An NFT could be anything such as a picture, a song, a movie,… If you have an NFT, it means you own it. Because of being stored on blockchain systems, NFT transactions are clear and transparent. Therefore, anyone can track the owner of an NFT at any time.
The most famous NFT collection is Bored Ape Yacht Club while the most popular NFT marketplace platform is OpenSea.
In summary, an NFT:
- is stored on a blockchain
- is a unique asset
Here is some very basic information about Blockchain, Cryptos, and NFTs. If you find anything not so right or have anything to say, please post it in the comment section. Thanks for reading!
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4 Comments
Anonymous · March 28, 2022 at 3:32 am
rất hữu ích :))
mankaistep · March 28, 2022 at 3:49 am
thank kiều
Anonymous · March 28, 2022 at 4:50 am
Nghệ luôn bạn ơi
mankaistep · March 28, 2022 at 6:31 am
Hì ok b