❔Basic concepts
What is Blockchain?
Imagine an economic system like any other, but in this system, physical money like bills or coins does not exist. Cryptocurrencies exist only online, in a place called the blockchain. Now, imagine that the blockchain is a large ledger where all transactions made with cryptocurrencies are stored. It's a public, transparent, and secure ledger. This means that anyone can view transactions, but they cannot alter them. While you make a transaction and wait just a few seconds for its confirmation, the magic happens on the blockchain. It handles all confirmations, transfers, checks, deductions, and charges to respective wallets.
Here are some links that can expand on the concept:
Blockchain in 5 mins: https://www.youtube.com/watch?v=Yn8WGaO__ak&ab_channel=PlayGround
Blockchain at a technical level: https://www.youtube.com/watch?v=V9Kr2SujqHw&t=220s&ab_channel=DotCSV
What is Gas Fee?
Every transaction on the blockchain consumes a certain amount of resources, such as processing time and storage space. The gas fee is like a payment to cover the costs of these resources. It's similar to a handling fee that a bank charges when using your savings card. The gas fee can vary depending on factors like network congestion and transaction complexity. If the network is busy and there are many transactions waiting to be processed, the gas fee can be higher. It's important to note that the gas fee is paid in the cryptocurrency of the network where you are conducting the transaction. For example, on the BEP20 network, the gas fee is paid in BNB Smart Chain (BNB).
What are NFTs?
NFTs are like digital collectible cards. They have their own value and special characteristics that make them unique. They can represent digital artwork, music, videos, games, and many other types of creative content. Similar to collectible cards, some NFTs are more valuable or popular than others, depending on their rarity and demand. The blockchain technology, which I mentioned earlier when discussing cryptocurrencies, is also used to back NFTs. This allows the ownership and history of each NFT to be securely recorded and verified on the blockchain, so everyone can see its authenticity and originality. The owner of the NFT will hold it in their wallet.
Here's a link that can expand on the concept:
What are NFTs: https://www.youtube.com/watch?v=0KrdRZVr-q4&ab_channel=Fazt
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