What Are Non-Fungible Tokens (NFTs)?
Before we get into the nitty-gritty of NFTs, you need to understand the blockchain. Since its conceptual introduction in 2008 by Satoshi Nakamoto, the blockchain has perplexed the world. This decentralized ledger uses cryptography to permanently string together blocks of data.
Blockchain is the technology that powers Bitcoin, Ethereum, and every other cryptocurrency in the world. It leveraged this decentralized public ledger to solve a theoretical riddle for digital currencies, the “double-spend” problem.
Cryptocurrencies are what’s known as fungible tokens. Much like with two separate dollar bills, there’s no difference between one Bitcoin and another. They’re completely identical in every way. Cryptocurrencies aren’t the only thing that blockchains are capable of, though.
Non-fungible tokens exist at the opposite end of the spectrum. Like cryptocurrencies, they’re cryptographic tokens registered on a specific blockchain. However, they’re each entirely unique (and therefore, not mutually interchangeable) — like serialized collectibles of the digital world.
There are multiple types of NFTs out there. Digital art can be registered on a blockchain, for example, as a way to certify authenticity and ownership. The result would be digital art NFTs that represent ownership of original, authentic artworks.
Understanding Blockchain Domains
Computers connected to the internet have an IP address. These unique addresses allow individual devices to be identified on networks. However, they’re long and hard to remember. For example, Google.com’s IP address is 172.217.10.14. Not particularly memorable, is it?
Domain names provide an easier alternative. Instead of typing “172.217.10.14” in your browser’s address bar, you simply type “Google.com” and hit enter. Your browser automatically figures out that the website “Google.com” is hosted at the aforementioned IP address.
For that to happen, domain names need to be registered in the Domain Name System. DNS servers are spread all over the world, and help browsers resolve domain names to IP addresses. Internet service providers then connect users to the appropriate IP address.
The DNS network is administered by the Internet Corporation for Assigned Names and Numbers (ICANN). They oversee the development and architecture of the overall system at the top level. Up until recently, ICANN and DNS were the only methods to obtain a working domain name.
Blockchain Domain Names
This has a number of practical applications. While DNS servers are spread all over the world, the system itself is centralized and controlled by ICANN. It’s therefore possible for ICANN to censor individuals, or cooperate with authorities to achieve the same result.
In contrast, blockchain domain names are permanently etched into a public registry. They can’t be purged, modified, or censored by any third parties. As such, they provide an avenue for websites to fight back against censorship, effectively protecting freedom of speech.
Accessing blockchain domain names has historically required special software but is becoming easier to access. Users of popular browsers like Chrome or Firefox can now resolve blockchain domains directly through their browser with one small DNS change.
Another feature of blockchain domain names is that they can link to cryptocurrency wallets instead of websites. Asking for payments via “yourname.crypto” is more convenient and easier to remember than “1NVWiyvVLAuCoxzQ6Ujy4UDpkgRwe8VPwW.”
Blockchain Domain Non-Fungible Tokens
Enter blockchain domain non-fungible tokens (NFTs). They combine the easy trading of NFTs with customizable domain names built on blockchain. In the past few months, they’ve also seen a sudden rise in consumer and investor interest — for several reasons.
Companies such as Unstoppable Domains and protocols like Namecoin allow users to purchase blockchain domains, and even entire domain namespaces. The latter allows users to rent or sell individual domain NFTs down the road.
For example, the owner of “.crypto” domains on a specific blockchain protocol can rent or sell individual “name.crypto” domains. This can pose a unique opportunity for early investors. Some, like Mark Cuban, are already looking towards this new, booming market.
Cuban has already launched several lines of collectibles, figurines, and digital art powered by NFTs. Still, he believes that these novelties are mere proofs-of-concept. “The real growth comes when corporate [intellectual property] goes [to NFTs],” tweeted Cuban in late February 2021.
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It's good you have given this a larger visibility.
ReplyDeleteA lot is changing and we in Africa, are not catching up at all.
Blockchain technology has come to stay.
And Blockchain domain is one of that future digital outbreak that will strengthen your websites and give it the real value - saving you from, data losses, renewal wastages etc.
I must first and foremost state "without ambiguity" that; I am not an internet guru, my field remains raw material transformation - Food Processing but because this new wave involves Technology; we are not left out in the redesign thinking process to cover our area of call.
A domain remains a very big term for me to explain, but I understand the role it can play in having a digital presence, maybe our gurus here present will do justice to it.
What I do know - as a strategic business mind and someone specially invited for the METAVERSE debate today, remains:
There can be no other better way to secure your digital content as an asset other than having a lifetime right of ownership.
ie whatever you put in your Blockchain domain will remain yours for life, no one comes to tell you renew "bullshit" or loose content associated with your Domain hosted by them
Futo alumni Lagos I learnt once lost their website 🕸️ because they couldn't renew one thing or the other - which in most case you engage in a lot of file recovery, I have been there severally.
I will not bore you with details, but one thing I am sure from forensic outlook remains that; web 🕸️ 3.0 rooted in Blockchain technology will be a cruise of asset definition digitally in shortest time you can imagine.
I don't joke with Non Fungible Assets and Smart Contracts because it levels above government or individual interceptions, except the programmers choose to mess it.
Why was I privy to this Lauderdale-like-space frame of reason?
I was on my own oo when I received the invite to be part of today's broadening thought on METAVERSE with a clause not to miss it from a respected persona.
In my usual way of preparation before being an audience, I stumbled into what I call the golden opportunity paying for a domain once in life time and it will be supported in the Blockchain technology in the near to in-vogue WEB 🕸️ 3.0
If i don't understand any other thing, I know how many time I have renewed www.etcfood-ng.com from 2016 till date and is currently under maintenance at the mercy of the very first developer who had all the original content to it.
Experiencing such from 2016 till date, and coming across a technology that will see that I will never have to SPEND ON renewing my web domain , do you think I should keep the discovery of cost saving to myself?
No I had to share it.
And to say the least METAVERSE is going to be huge attainment.
Ever reasoned why Facebook became meta overnight, any dot to connect? because I am in that thinking street now.
While the WEST have moved on, with the thinking of how best can we learn from COVID-19 lockdown?
And tapping into metaverse , it has been sensed as the bearing midwife.
Currently researchers, learners in all field are being assembled and debriefed in-toto.
We in Africa are unaware of it.
In 5yrs time it will be a Technology, we will consume alongside others and glut about.
we analyzed
We wrote,
we talked,
we projected and pleaded that Nigeria should allow the digital currency 💲💵 to flow along.
They were placing political control before knowledge, now they have released a coin that is performing as its physical cash - While it had the best opportunity with best hands to be the new bride, possibly escape root from fx tangles in USD. They are not jokers to have launched BUSD and USDT concurrently performing to safety.
All the same, I am grateful one can still see NGN in the list of coins today.
My kind advise remains;
Get one unique domain here now👇👇👇👇
https://unstoppabledomains.com/?ref=411a9ef5a3354cb
It may not cost the same by January.
Engr. Chinedu Ezeh