What's an NFT?
Welcome to our "What’s an NFT?" page, your go-to guide for understanding one of the most talked-about concepts in the digital world today. Whether you’re new to the space or just need a refresher, this page is dedicated to helping you break down technical terms in a simple and clear way.
Non - Fungible Token
This means it is not something that can be interchanged. Money is a fungible asset, there are different ways to make the same value. Whereas with NFT's, this is not the case, there can only be one version of an NFT, like a painting. NFTs allow the concept of ownership to be applied to digital assets. When you buy an NFT, you have the official ownership of that NFT. You can then display this NFT online to share it with the NFT community in the metaverse for instance, your ownership can be verified through your Cypto wallet. Your NFT can also be displayed in the physical world.
The Metaverse
The metaverse is an immersive, embodied version of the internet, where users actively participate in experiences rather than simply observing them on a screen. Enabled by augmented and virtual reality technologies, the metaverse consists of 3D, persistent online environments that users can explore. Within these spaces, individuals can play games, socialise, work, and interact in real-time. NFTs play a crucial role in the metaverse by allowing users to own, display, and trade unique assets, from digital art and fashion to virtual real estate. As the metaverse continues to grow, it offers new possibilities for entertainment, business, and creativity, revolutionising how we connect and engage in the digital world.
Blockchain
A blockchain is a distributed ledger that is shared across a network of computers, ensuring transparency and security. Data added to the blockchain is immutable, meaning it cannot be altered once recorded. Each new piece of data is stored in a "block," which is then linked to the previous one, forming a continuous chain—hence the name "blockchain." Updates to the blockchain require consensus from the network, ensuring that all participants agree on the validity of new information before it is added. This decentralised structure makes blockchains highly secure, transparent, and resistant to tampering.
Smart Contract
A smart contract is a self-executing computer program stored on a blockchain. It automatically runs when predefined conditions are met, which are agreed upon by the creators beforehand. Once initiated, the contract is irreversible, ensuring that all terms are enforced without the possibility of modification. Smart contracts enable trusted transactions between anonymous parties, eliminating the need for intermediaries or central authorities. This makes them a crucial element in decentralised systems, providing secure, transparent, and efficient solutions for everything from financial transactions to digital asset exchanges.