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Thus far, you’ve been educated around elements of storytelling and utilities alongside how NFTs are instrumental components across the metaverse. This week, the focus emphasises a term called ‘hash’, which refers to diversifying content creation, and blockchains impact across the NFT industry alongside the most important types of cryptocurrency.
Diverse content creation
There’s a function called ‘hash’. This refers to generating a sequence of numbers and letters based on a message you may be typing to someone. For example, if you’re intrigued about two Harry Potter editions containing the same content, there’s an opportunity you can hash each book’s content to identify if they’re the same.
Blockchain
Blockchains are a significant record of transactions which require grouping in blocks, hence why they’re called ‘blockchains’. It’s seen as a revolutionary technology which many sports brands have utilised to expand their monetisation streams, such as some sports clubs offering fan tokens to their supporters.
Going into further detail, the most important features of global blockchains consist of
- Them being decentralised means not relying on centralised entities to operate, for example, an Amazon server/government. Instead, the more effective blockchains rely on behind-the-scenes computation provided by independent nodes.
- They’re fully public and auditable: People need to be able to access blockchain history. For example, the open-source blockchain Ethereum’s history is accessible via this link https://etherscan.io. When referring to ‘history’, it relates to the following key details: the address, transaction amount and the method involved in forming the contract.
- They’re practically incorruptible: If someone attempted to register a fraudulent transaction, they wouldn’t end up with a different block hash compared to the remainder of the network. Therefore, that chain of fraudulent blocks would need to be enforced with more computation power than the network remainder, a virtually impossible task.
Cryptocurrency
Many would argue that globally, Bitcoin has proven the most important cryptocurrency thus far. In some countries, crypto has been revolutionary, such as Nigeria, Venezuela, and Argentina; crypto has proven to separate the impact of arbitrary policy decisions on the currency, which has proven risky for the general population.
Networks
Each coin can operate on different networks, created for different purposes.
Address
In the metaverse, an address is the first point of contact we all identify as.
Below is an NFT-related example
Despite the address potentially being complicated to remember, the current ecosystem is attempting new ways to make remembering this user-friendly. For example, using these in-interest domain names could be a way forward as instead of ‘mcdonalds.com’, you can use ‘mcdonalds.eth’.
Budweiser has bought the beer.eth domain and have published online.
Gas fees
When a transaction is operated, network users pay for them.
The fee goes to blockchain miners, so their service continues to run efficiently.
Ethereum is the most popular blockchain in the NFT landscape.
Layers
The blockchain ecosystem can be divided into two layers.
Layer 1: this is the blockchain itself. Examples involve Ethereum, Bitcoin, Solana, and Flow.
Layer 2 refers to a network or technology operating on top of a current blockchain to improve its scalability and efficiency.
This type of technology has supported many people in entering the world.
Smart contract
These are programs stored on a blockchain running an auditable logic that anyone can interact with.
Ethereum is an open smart contracts program allowing thousands of ‘innovators’ to begin using the technology, not needing to set up their own blockchains.
Every NFT collection is based on a smart contract. In the case of Bored Apes, for example, their Smart Contract minting function says:
- Check if the sale is active
- Check if the number of requested apes is within the allowed amount
- Check if there is enough supply for the requested amount
- Check if the user sent enough ETH
- Mint each sold ape
Token
These represent ‘tradeable things’ that are on a blockchain.
Remember, NFTs are non-fungible tokens. Therefore, they won’t have the same value.
For example, certain types of bored apes will be worth more than others.
To summarise, the ‘hash’ function allows diverse content creation to become more lucrative. Blockchains have proven a significant game-changer across the NFT landscape due to their ability to offer new monetisation streams; a similar applies to cryptocurrencies.
To discover the full details around the growth of the metaverse, feel free to study Inevitable’s course here.
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