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Digital Collectibles and NFTs

TheNonFungibleHuman🪄 — Tue, 30 Aug 2022 09:32:00 +0000

If you've been wondering why i call myself The Non Fungible Human, read on!🙃

Digital Collectibles

Collectibles have been around for centuries, with people collecting everything from stamps and coins to baseball cards and action figures. But what happens when the collectible is digital?

That's where the world of digital collectibles comes in.

Digital collectibles are items that exist only in a digital form and can be collected, traded, or sold like any other item online.

NFTs

A non-fungible token, or NFT, is a digital asset that is unique and cannot be interchangeable with another unit of the same type. This makes them perfect for representing digital collectibles or scarce items in online games.

For example, you could create a limited edition set of NFTs to represent an event or character in your game.

In other words, each NFT is a distinct and individual item. This makes them perfect for representing digital collectibles, as no two items are alike.

NFTs are created on blockchain platforms like Ethereum and EOS using smart contracts. This allows for trustless ownership and easy transfer between users.

It also means that the assets can be stored securely on the blockchain and used as collateral for loans or betting exchanges.

6 NFT Use Cases

1. Collecting and Trading: One of the most popular uses for NFTs is collecting and trading them with other people.

2. Loyalty Programs: Many businesses use loyalty programs to reward customers for their loyalty. With NFTs, these programs can be digitized and made much more efficient and user-friendly.

3. Charitable Donations: Non-profit organizations can also benefit from using NFTs as a way to accept donations from supporters around the world. This not only makes it easier for donors to donate money, but it also allows them to track how their donation is being used.

4. Event Ticketing: Tickets to events often sell out quickly, so having an online system that uses NFTs can help ensure that everyone has a fair chance at getting tickets without having to queue up in person hours before the event starts!

In addition, this system can also help reduce ticket fraud since each ticket would be linked specifically to the owner’s unique ID number)..

5. Online Gaming Items: Online gamers have been using virtual items (like swords and armor) as an alternative form of currency for years now!.

By using NFTs instead of virtual items though, gaming platforms could create a more secure system where gamers know that they will always own the items they purchase regardless of what happens to the game server itself).

6. Digital Art Assets: Just like physical art pieces appreciate in value over time, digital art assets hold similar potential thanks to blockchain technology!

Artists who create digital artwork could use blockchain technology as a way to store their work securely while allowing buyers access 24/7 from anywhere in the world).

You know other NFT Use Cases, drop them below 👇

You should literally know what The Non Fungible Human means now🙂

Consensus Mechanisms in Blockchain

TheNonFungibleHuman🪄 — Tue, 30 Aug 2022 09:20:32 +0000

Image credit: crypto.com

Firstly, what are consensus mechanisms?

Consensus mechanisms are the process by which a blockchain network agrees on the validity of transactions. In order for a transaction to be added to the blockchain, it must be approved by all nodes in the network

A node in the blockchain is a computer that connects to the blockchain network and helps verify and relay transactions. Nodes are important because they help keep the blockchain secure by verifying transactions.

In order to be a part of the network, nodes must agree on a set of rules, or protocol, for how transactions are verified.

Why Blockchains need Consensus Mechanisms?

Types Of Consensus Mechanisms

1. Proof of work - PoW
Proof of work is a requirement that is put in place to ensure that blockchains are secure. In order for a new block to be added to the blockchain, the miner must solve a difficult mathematical problem.

In order to create a new block, miners must solve a difficult cryptographic puzzle. The first to come with the 64-digit hexadecimal number (has) gets the right to form the new block. The winner is also given a speculated block reward.

This proof of work requires significant computational resources, so it can't be faked or duplicated. The proof of work also verifies the legitimacy of transactions, preventing fraud and double spending.

2.Proof of stake - PoS

Proof of stake is a type of algorithm used by blockchain networks to confirm transactions and create new blocks. In proof of stake, the creator of the next block is chosen based on their ownership stake in the network.

This means that people who own more tokens will have a greater chance of creating a new block and earning rewards. Proof of stake is seen as more efficient and secure than other methods such as proof of work because it doesn't require miners to use large amounts of electricity.

3. Delegated proof of stake - (DPoS)

Delegated proof of stake (DPoS) is a blockchain consensus algorithm that allows stakeholders to vote for delegates, who are responsible for validating transactions and maintaining the blockchain.

Delegates can be voted out if they do not perform their duties properly. DPoS is considered more efficient and scalable than other consensus algorithms, such as proof of work or proof of stake.
5. Proof of activity (PoA)
Proof of activity (PoA) is a consensus algorithm that uses both proof of work and proof of stake. PoA is designed to be more efficient than pure proof of work or pure proof of stake systems.

In a PoA system, blocks are created by miners who are able to prove that they have done some work. Miners can also prove that they own some coins, which allows them to vote on the validity of blocks. Blocks are accepted if most voters agree that they are valid.

PoA is less secure than other consensus algorithms, but it is faster and more efficient.

5. Proof of authority (PoA)

Proof of authority (PoA) is a consensus algorithm that enables participants to reach an agreement on the state of a blockchain. PoA relies on pre-approved nodes known as authorities, which are responsible for validating transactions and blocks.

This makes it less computationally intensive than other algorithms and allows for faster transaction times.

6. Proof of burn (PoB)

Proof of burn is a way to secure the blockchain and prevent attacks. It works by requiring users to "burn" or destroy some of their coins in order to create a new block.

This makes it more difficult for someone to attack the blockchain, as they would need to have enough coins to cover both the cost of creating a new block and burning them. Proof of burn is also used as a way to distribute new coins, as those who burned the most coins are rewarded

7. Proof of capacity/proof of space (PoC/PoSpace)

Proof of Capacity/Proof of Space is a way to allocate resources in a Blockchain. It is used to determine who can participate in the network and how much storage they are allowed to use.

Proof of Capacity/Proof of Space uses the amount of disk space that you have available as your proof. This allows people with more disk space to be rewarded for their contribution.

The file must be submitted in advance and can be verified by other miners. If the miner does not have enough available storage space, their submission will be rejected.

This ensures that blocks are only added to the blockchain if there is sufficient storage capacity available, which helps prevent overcrowding and slows down the growth rate of blockchain data files. It also prevents malicious actors from adding illegitimate blocks to the chain.

7. Proof of elapsed time (PoE)

Proof of elapsed time (PoET) is a consensus algorithm used in blockchain technology that helps to prevent spam attacks and ensure the fairness of the network.

It works by requiring participants to solve a cryptographic puzzle, with the solution being verified by other participants. The amount of time it takes to solve the puzzle is used as a measure of how trustworthy the participant is.

PoET can be used in conjunction with other algorithms, such as proof-of-work or proof-of-stake, to provide additional security and reliability. It is more efficient than other methods when it comes to preventing spam attacks, and it can also help reduce energy consumption.

8. Proof of History (PoH)
Proof of History is a new way to verify the authenticity of digital documents and data. It operates by embedding hashes of documents into the blockchain, allowing anyone to verify that a document has not been altered since it was added to the blockchain

PoH also allows you to track changes made to a document over time, so you can see who made which changes and when. This makes it an ideal solution for verifying the integrity of data or documents in cases where fraud or tampering is suspected.

9.Proof of Importance (PoI)

Proof of Importance (PoI) is a consensus algorithm used by some blockchain networks, such as Nxt and BitShares.

PoI is based on the idea that not all nodes in a network are equal, and that some nodes should have more say in the network than others. Nodes with more importance are called "witnesses".

Witnesses are chosen randomly, but those who have been active on the network for a long time or who hold more coins have a higher chance of being chosen. Witnesses are responsible for confirming transactions and adding them to the blockchain.

They also vote on changes to the network protocol. In order to be elected as a witness, you must submit your candidacy to one of the existing witnesses.

Who Are The Various Actors in the Web3 Ecosystem?

TheNonFungibleHuman🪄 — Tue, 30 Aug 2022 09:06:53 +0000

There are a lot of actors on the web3. we'll be looking at the most important ones:
- Crypto Exchanges
- Crypto Wallets
- Validator
- Crypto Custody
- Cryptocurrency on-ramps and off-ramps.

1. Crypto Exchanges
A crypto exchange is a digital marketplace where people can buy and sell cryptocurrencies. They are similar to traditional exchanges such as the New York Stock Exchange, but instead of stocks and shares, people trade cryptocurrencies like Bitcoin and Ethereum

Crypto exchanges allow you to buy coins at the current market price, or to place limit orders that will be executed when the price reaches a certain point. They also offer margin trading which allows you to borrow money from the exchange in order to trade with more capital.

2. Crypto Wallets
A crypto wallet is a digital storage device for your cryptocurrency. It stores the public and private keys needed to access and send your funds. Wallets come in many different forms, including desktop, mobile, and online wallets.

There are many different types of wallets, so it's important to do some research before choosing one.

3. Crypto Validator
A crypto validator is a computer system that checks the validity of digital signatures and other cryptographic data. By ensuring the accuracy of this data, crypto validators help protect against fraudulent activity online.

A validator in web3 is an important part of the network because it helps to maintain the integrity of the blockchain. Validators are responsible for verifying transactions and adding them to the blockchain.

Two validation protocols are proof of work (POW) and proof of stake (POS) more like a banker responsible for verifying a transaction.

4. Crypto Custody
Crypto custody is a way to keep your cryptocurrency safe. You can use crypto custody to store your coins in a secure location, so you don't have to worry about them getting stolen or lost.

5. Cryptocurrency on-ramps and off-ramps

Cryptocurrency on ramps and off ramps are digital platforms that allow users to buy or sell cryptocurrencies. On ramps allow users to buy cryptocurrencies with traditional currency, such as dollars or euros.

Off-ramps allow users to sell their cryptocurrency for traditional currency. Some on ramps and off ramps also offer other services, such as wallets that store cryptocurrencies and exchanges where users can trade different types of cryptocurrencies.

There are many different on-ramp and off-ramp platforms available today. Some of the most popular ones include Coinbase, Gemini, Bitstamp, Kraken, Binance, and Poloniex. Each platform has its own unique features and benefits.

They are the key to bridging the gap with the traditional financial world and for bringing in new users and money into the crypto market.

Web3 Explained like you're 5!

TheNonFungibleHuman🪄 — Tue, 30 Aug 2022 08:32:43 +0000

Web3, The Internet of Value and Distributed Ledger.

What is Web3?
Web3 is a term used to describe the third generation of the World Wide Web, which is still in development. The first generation of the web was made up of static pages that were published online.

The second generation allowed users to interact with these pages through dynamic content and user-generated content. E.g Facebook and Twitter.

Web3 aims to take this one step further using blockchain technology and decentralized applications (dapps) to create a more secure and efficient internet.

This will allow for more trustless transactions between users and enable them to control their own data without relying on third-party providers.
Web3 aims to give the power of the internet to YOU!

THE INTERNET OF VALUE
The internet of value is a relatively new term that refers to the potential for blockchain technology to revolutionize how we interact with the digital world.

The basic idea is that by using blockchain technology, we can create a more secure and efficient way of exchanging value online.
This could potentially have a huge impact on everything from e-commerce to international payments.

For example, right now if you want to buy something from an overseas vendor, it can be difficult and expensive because you have to go through a third party like PayPal. With the internet of value, you could directly exchange currency with the vendor without having to pay fees.

DISTRIBUTED LEDGER
A distributed ledger is a database that is spread across many different locations and computers. This type of database allows for secure, transparent transactions between different parties.

Because the data is distributed, it is not stored in one place and can be accessed by anyone who has permission to do so. This makes it a great choice for businesses that need to share information securely or want to reduce the risk of fraud.

Blockchain has become so popular that people have forgotten about the parent, distributed ledger. All Blockchains are distributed Ledgers but not all distributed ledgers are Blockchain

Blockchain is merely a subset of Distributed Ledger.
A Blockchain is a shared database filled with entries that must be confirmed and encrypted. The name Blockchain refers to blocks that get added to a chain of transaction records using cryptographic signatures called hash.

And that's it! Done with the basics!✅

Image credit: @suhailkakar
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