Vietnam is Working on a Crypto Policy, Again!
July 7, 2021Bitcoin As a Bubble: 5 Pros and 5 Cons
July 8, 2021
Soon after Bitcoin, it became clear that blockchain technology can be used for many purposes other than money transfer. If you can prove ownership of your coins in a public immutable database, why not prove your ownership of something else? This is how NFTs emerged — a kind of cryptocurrency that shows cryptographically verified evidence for you owning a piece of art, a Tweet, or a video. The NFT boom was at its high in March 2021 — so now, it’s a good time to sum it up and see what were the most hyped and expensive sales.But first, let’s remember what NFTs are.The key concept for NFTs (non-fungible tokens) is fungibility — it’s when two items of one kind have the same value. For example, 1 US Dollar equals any other US Dollar, and they are fungible. The same is for Bitcoin: if you buy 1 BTC on ChangeNOW, it would be of the same value as 1 BTC sent to you by your friend.NFTs are still cryptocurrencies, but they are non-fungible: every NFT is different from one another, and they can’t be equally exchanged. A picture, a text, a video, or a ticket — they are all unique, and you can barely find two similar items among NFTs.Non-fungible tokens are stored on blockchains such as Ethereum, Binance Smart Chain, EOS, and TRON, and traded on NFT marketplaces like Opensea or Rarible. Ethereum-based ERC-721 and ERC-1155 are the two most popular formats of NFTs. Since blockchain is transparent and public, you can see all NFTs out there and even download their digital copy, but only one digital address is the owner. It’s like the Mona Lisa: its original is owned and displayed by Louvre, but you can find its photo on the internet and print it. Pieces of art,…
