NFTs are one of the foundations of web3. This series will introduce NFTs through 30 short articles, allowing everyone to understand and master the relevant knowledge about NFTs from scratch.
Hello everyone, welcome back to the second article in our series on understanding NFTs.
In the previous article, we discussed what the core of NFTs is and briefly mentioned that they operate on the blockchain. In this article, we will delve into what the blockchain is in more detail because understanding the blockchain is an essential part if you want to grasp NFTs.
The blockchain is essentially a distributed database or ledger that is shared among many nodes. One key difference between a typical database and a blockchain is the difference in data structure. A blockchain is composed of interconnected data blocks, with each block capable of storing certain information. The chain formed by these blocks containing data is the blockchain data chain.
Most databases are controlled by a central governing body and are located in one place. Such databases have a major drawback in that they can crash the entire database due to failures. For example, a central database can be vulnerable to hacking attacks.
Bitcoin introduced the concept of a distributed ledger, where data is stored simultaneously in multiple locations or databases without the involvement of a central governing body.
You may wonder, what does this have to do with NFTs? As mentioned earlier, it is important to realize that NFTs are based on the blockchain, and without the blockchain, there would be no NFTs. Both cryptocurrencies and NFTs rely on blockchain transactions to prove their authenticity and record ownership. In most cases, purchasing NFTs requires the use of cryptocurrencies. Ethereum is the most important and well-known blockchain for NFT transactions. To buy NFTs on Ethereum, you need to use ETH, which is the native currency (token) of Ethereum.
Solana and Tezos are two other promising NFT blockchains that have their own tokens. Each blockchain is unique, with its own characteristics and advantages. In the next article, we will explore how to interact with the blockchain in practice and help you own your first NFT.
Further Reading:
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If you have 5 minutes, this is an excellent article that explains NFT blockchains: https://nftnow.com/guides/complete-simple-guide-to-top-nft-blockchains/
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If you have 6 minutes, this is a great in-depth explanation of the blockchain: https://www.youtube.com/watch?v=3xGLc-zz9cA
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