Blockchain and Its Role in NFT

what is NFT and blockchain

what is NFT and blockchain

Blockchain is an innovative technology that was first introduced in 2009 when Bitcoin cryptocurrency appeared in the market. Blockchain works in two ways. Firstly, it works as a distributed network of the digital ledger, and secondly, it is a secure system that makes safely transfer of digital ownership of assets from one hand to the other.

With the emergence of the internet, a free and secure flow of information is now possible all around the globe. Similarly, with the use of blockchain technology, the safe and secure digital exchange of units of value is possible. These units of value would be of anything. This might include property titles, tokenization of votes, or any other physical or digital assets. Nowadays blockchain networks are in many formats. Blockchain networks are either open networks or are restricted to certain people in a closed network. Blockchain tokens used in cryptocurrencies are fungible which means each currency token has an equal value compared with another of that currency unit.

Non-fungible tokens or NFTs on the other hand, are such Blockchain tokens that have unique or identical values. For example, a certain painting is different and identical from the other painting, and both the paintings would have unique value or pricing. NFT can also be widely used in other segments of life, such that, in producing unique and identical birth, death, and marriage certificates as well as for the unique educational transcripts. We can confidently say that blockchain and NFT are the technologies of the present and the future that have immense room for growth in the coming days.

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  • Freelance Accountant, Full Charge Bookkeeper, Financial Analyst, and Ex Banker with 15 Years of Professional Experience. Also a Blogger...

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