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The blockchain is everywhere: what do NFT and Web3 have in common?

by Ethereum 2 months ago in nft
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Nft Token Development - Blockchainx

We have been hearing about the benefits of blockchain for years. An encryption and authentication technology that serves a lot. But it has not been until a couple of years ago that there has been an explosion of projects based on blockchain development and that they intend to come to stay. First it was cryptocurrencies. Next came NFT assets . And now everyone is talking about the metaverse. Even Facebook changed its name to Meta .

Blockchain is a word common in cryptocurrencies, NFTs and Web3, are the. We have talked long and hard about this technology. Known in English as blockchain and as chain of blocks in Spanish, IBM defines it as "a shared and immutable ledger to record transactions, track assets and build trust." The definition follows with “virtually anything of value can be tracked and traded on a blockchain network, reducing risk and costs for everyone involved.”

In short, to exchange information securely Blockchain technology is a best option. This implies that this information is not corrupted or lost or altered. Or to return to the words of IBM: “It provides immediate, shared and completely transparent data stored in an unalterable distributed ledger to which only authorized members have access”

From blockchain to cryptocurrencies and NFTs

IBM says that any asset can be part of the blockchain. Tangible assets (buildings, vehicles, cash, land...) and intangible assets (patents, copyrights, trademarks, intellectual property). Those assets are represented by data that, according to Wikipedia, can be stored, transmitted, and confirmed.

Precisely, thanks to the characteristics of the blockchain, they have made possible the creation of cryptocurrencies or cryptocurrencies The No one The blockchain aims to ensure that the information or data saved and exchanged is accurate, uncorrupted, and trustworthy. With virtual money, the same thing happens. wants a currency that is easy to copy or counterfeit . Hence the importance of cryptocurrencies . It is It's difficult to make them, and they're valuable in and of themselves.

And from there we go to NFT. Two sides of what the blockchain can do are Cryptocurrencies and NFTs. In the case of NFT, it is a unique digital asset that cannot be divided or replicated. Y denotes a one-of-a-kind virtual item, regardless or not it has a real counterpart. While it is possible to produce similar cryptocurrencies, which is why they are used as currency, the NFT is unique, despite the fact that it represents the same real-world counterpart.

At a historical level, the first time that the blockchain of encrypted information is mentioned is in 1991. Since then, the blockchain has been introduced little by little in companies for the exchange of data and information in a secure way. But the big boom occurred in 2008 when Bitcoin , the first major cryptocurrency, saw the light for the first time. Its creator is the Japanese Satoshi Nakamoto, an alias whose real identity is yet to be known. In 2014,the development of blockchain technology begins to be tested for financial transactions and the Ethereum platform and algorithm is born .

Precisely, thanks to Ethereum it is possible to create NFTs, what we know as non-fungible tokens. Anything real or virtual can become an NFT, an original and unrepeatable copy that has value in itself such as Music, video, paintings, cartoons, trading cards, GIF animations... And one of the keys that has made possible the generation of other projects related to blockchains, such as blockchain games or cryptogames and the metaverse.

Blockchain games are video games that employ NFT items or virtual tokens . They can be utilised to obtain game assets or act as game assets themselves, such as weapons, armour, powers, extra lives, virtual properties, and so on. These assets can be traded.. And on the other hand, by the mere fact of playing, players can obtain prizes or tokens that can be exchanged for real currency, usually in the form of cryptocurrencies.

The metaverse is also nourished by cryptocurrencies and NFTs, since these three-dimensional virtual worlds use all kinds of digital elements and assets . Anything virtual, as we've seen, is likely to become an NFT.

From blockchain to Web3

Web3 is the most recent project related to the chain of blocks or blockchain. And, in turn, it is closely linked to the world of cryptocurrencies and NFTs. To begin with, to access Web3, instead of using an email you will use a virtual wallet or wallet. It's the same one that's utilised to acquire and sell cryptographic digital assets nowadays. This has an unavoidable commercial component, but on the other hand, its defenders emphasize its security and privacy.

Whereas today you identify yourself with your personal details or an easily traceable email address, on Web3 we will be an anonymous alphanumeric code. This will give us more privacy and prevent us from being traceable or that online companies and services can collect information about us. It will continue to be possible but maintain our anonymity.

The New York Times credits Packy McCormick with making the concept of Web3 "fashionable." This defines it as "an internet that is owned by developers and users, coordinated with tokens." Precisely, a characteristic of Web3 is its decentralisation. The Internet was designed as a decentralised network of networks, meaning that even if a few nodes went down, the network would continue to function. But over the years, large companies have taken over this Internet and today there are small "hecatombs" every time the servers of Microsoft, Google, Apple or Meta (formerly Facebook) go down.

In Web3 we will see services similar to those we already know. Social networks, video games... But with its own characteristics, such as decentralization and anonymity. Or the possibility of obtaining cryptographic tokens and/or trading with NFTs. What opens the doors to companies from all over the world to take part in a market until now limited to the big ones.

Although at the moment there is more theory than practice, what we do know about Web3 is that it will be based on the blockchain and on platforms such as Ethereum to facilitate the exchange of NFTs, tokens and cryptocurrencies. Precisely, on Web3 you can pay through Ethereum , among other cryptocurrencies accepted on the NFTs and cryptos platforms .

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