What is blockchain?
Understanding terms like "blockchain" is essential for understanding the NFT space.
Blockchain is a digital ledger technology that securely stores transactions in a decentralized network of computers. Each transaction is verified and added to the ledger as a block, forming a chain of blocks that create an immutable record of all activities on the blockchain. This means that it is extremely difficult, if not impossible, to hack or change the data stored in a blockchain.
DLT, or Distributed Ledger Technology, refers to the decentralized management of this ledger by multiple participants. This allows for a transparent and secure system, as every participant has a copy of the ledger and can verify the accuracy of the transactions. The use of cryptographic signatures, also known as hashes, further strengthens the security of the data stored on the blockchain.
The decentralized nature of blockchain technology and the difficulty in altering the data stored in it make it an ideal platform for securely storing valuable information, such as financial transactions, personal identity information, and digital assets like NFTs. Digital creators can take advantage of blockchain technology to securely sell, trade, and manage their digital creations, providing an additional layer of security and protection for their work.