Blockchain, Crypto, NFT and Metavers: Understanding the Basics

We hear about Blockchain, Cryptocurrencies, NFT or Metavers, but What is the connection between all these concepts?

What is a cryptocurrency?

A cryptocurrency is a currency digital and decentralized. She swaps peer-to-peer without trusted third parties like banks. These currencies have no physical backing and are not regulated by a central body. For some, this independent operation is reassuring because it allows to avoid monetary manipulations by central banks or states (so there is no excessive creation of money, responsible for certain crises, etc.). However, this dimension should also be put into perspective because not all cryptocurrencies can boast the same stability and future prospects.

Learn more: Expert Opinion on Cryptocurrencies: History, Challenges and Limitations

What is the value of a cryptocurrency?

While they are often denounced for their volatility, it is essential to understand this behind every crypto there is a project. Like all projects, some are promising, others risky, and there are obviously scams … It is therefore necessary, before investing in a crypto, to find out carefully about the project behind it to know if it can evolve over time and why not revolutionize a field .

We need an example to understand better. The project ETHEREUM lies in the commissioning of a independent computer network in the world that work instead of large corporate servers like facebook. hence, the the personal data of users are no longer in the hands of these giants but dispersed around the world through several independent private computers.

What is the Blockchain?

Each cryptocurrency has its own blockchain (which uses algorithms) and this is the famous Bitcoin which gave birth to the first blockchain in 2009.

It is important to understand what the ” extraction because it is on this system that the blockchain is based. Indeed, all host Blockchain mining and this is what it allows secure the system and have total transparency.

When we say that this system is completely transparent it is because at any moment anyone can know how many bitcoins have been transferred from that address to that address.

Therefore, mining allows you to run the blockchain: the miners make their computing power available with their machines (powerful computers) that validate transactions. But then, what is the interest for minors? Whenever their machine manages to decrypt a transaction, receive a commission on calculated transactions.

What is an NFT?

NFT stands for Non-fungible token (Non-fungible token) and is based on the uniqueness and rarity of a digital object which is therefore not interchangeable. We are talking about digital property : I can for example keep the first tweet published by one of the co-founders or own a special weapon (available in one copy) in a video game.

So how can you be sure you are the owner? Each NFT is traceable in the blockchain what makes the object unique.

Learn More: The Key to Understanding NFTs!

Where does the value of an NFT come from?

The numerical value has been around for a long time: it is customary to pay with the points earned in the game to have access to special weapons or accessories …

But here, NFTs revolutionize digital value because they rely on scarcity. You can be the only one who owns a weapon or power in your favorite game, who owns the latest digital pair released by Nike, etc…

When an artist creates a digital work and puts it up for sale, it is possible to trace the entire path on the blockchain and thus determine the true owner of the unique work. So no, taking a simple screenshot of the work doesn’t allow you to own it, and luckily for that matter!

What is METAVERS?

Those last few weeks, Facebook made a name for himself by changing his name to HALF, but what exactly is a metaverse? It is a virtual, parallel universe

Meta = beyond

Verso = universe

Metaverse = beyond the universe

Today we can experience the metaverse with the virtual reality headset which are more and more perfected.

The metaverse is an engaging open world, where it is possible to enter and exit freely. Each is represented by an avatar, chooses their own appearance and owns it the impression of actually being in this space. However, this parallel world must be sustainable in the sense that if we create value there, we must find it when we return to this universe. This is where the blockchain and cryptocurrencies because they are the legitimate ones in the virtual universe : replace the monetary system.

Blockchain and cryptocurrency bridge the gap between reality and virtual : you can own a valuable object in a virtual universe and resell it to then own cryptocurrency that you convert for example into euros or dollars in real life.

To know more: change of the name of the Facebook group

The last word

I hope this article has allowed you to better understand these notions which, I believe, will soon become big digital problems. It may still seem distant or somehow scary to some, but they are just tools and are not good or bad per se. Everything will depend on how we use it!

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