Blockchain is a system storing data that makes it difficult or impossible to change, hack, or manipulate the data. A blockchain is a digital ledger of transactions. It is duplicated and distributed across the network of computer systems that comprise the blockchain.
Each block on the chain contains several transactions. Whenever a new transaction takes place on the blockchain, a record of it is added to each participant’s ledger.
Blockchain is a distributed ledger technology in which transactions are recorded using a hash. A hash is a cryptographic signature that cannot be changed. Distributed Ledger Technology (DLT) means a decentralized database managed by several people.
This means that if one block in a chain is changed, it will be evident that the entire chain has been tampered with. If hackers wanted to take down a blockchain system, they’d have to modify every block in the chain across all versions.
As additional blocks are added to the chain, they expand in size, significantly boosting the ledger’s security.
In the shape of NFTs, blockchain has brought non-fungibility to the digital realm. This is similar to what it has done with fungibility in cryptocurrencies, allowing us to trade value like-for-like.
Blockchain’s immutability, dependability, transparency, and decentralization give up new opportunities for frictionless trading, exchanging, and sharing digital assets. It is expected to stimulate new blockchain-based innovation for many businesses.
For NFTs, Ethereum is now the most popular blockchain. It’s highly decentralized and provides all the financial and legal services that a transaction typically necessitates. It doesn’t need any intermediaries.
Some of the most well-known NFT marketplaces like OpenSea are on this blockchain. There are NFT projects like CryptoPunks and the Bored Ape Yacht Club on Ethereum. NFT artists like Pak and Beeple are featured on the Ethereum blockchain.
Sadly, the Ethereum blockchain is also one of the most expensive and energy-intensive options. This is because Ethereum is based on the Proof-of-Work algorithm. PoW requires computers to compete against one another to add blocks and transactions to the blockchain by solving complex puzzles. These puzzles are extremely tough to solve and involve the use of logic.
They also require a significant amount of computer processing power, resulting in tremendous energy wastage.
Aside from the Ethereum Blockchain, there are many blockchains that support NFTs, including Solana. Solana is one of the fastest programmable blockchains in the NFT world. Its one-of-a-kind combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus processes eliminates the necessity for such complex issues. As a result, validation times and expenses are significantly decreased.
Users stake a particular amount of cryptocurrency to be randomly selected as a PoS block validator. SOL is given to validators who are chosen. As a result, consumers who become stakeholders are both encouraged and rewarded. PoH is used with PoS to verify the passage of time between two occurrences cryptographically. The Solana blockchain ensures that transactions are completed correctly and that the correct leader is identified.« Back to Glossary Index