NFT & DeFi [Part 1]
This article shows you what is NFT and blockchain applications in an easy narrative way.
Introduction
From: Inter-American Development Bank
{: .box-note} Main Flow: Blockchain → Crypto (e.g., Bitcoin) → Crypto Wallet → Trading in Crypto market (e.g., NFT)
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Blockchain🔗
That is a novel technology in recent 5 years. Generally speaking, it is similar to cloud computing.
Decentralization is the key idea of the blockchain. It means there is no authority on top of the blockchain network. The network owner is you as a user. Every user can be one of the owners of the blockchain.
{: .box-note} You can be the blockchain network owner once you share your device’s processing power (e.g., Computer GPU)
Crypto🪙 - digital currency
For example, Ethereum is the leading “Altcoin” which is crypto other than Bitcoin.
In a normal capital market, Customers or merchants need to pay the transaction fee by using a credit card (e.g., Visa) or other digital payment methods. In the crypto world, we call it gas fee💵. Users need to pay the gas fee for the miners who help support the blockchain network with their computer processing power. It is the only cost when using crypto to perform trading.
{: .box-warning} Gas fee needed to pay for each transactions.
FAQ - Blockchain
- Who pays and maintains the server and bandwidth traffic?
- The answer is the miners. You can be one of them when sharing a computer or mobile to be the node of the blockchain network.
- Which is the index rate of gas fees?
- It is based on the traffic. If there is a traffic jam, the gas fee will be increased.
- What is a smart contract?
- It is a small program stored on a blockchain
- NFT is one of the smart contract applications
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NFT🖼️
Most of us know about NFT. In this section, we won’t deep dive into their technology. We focus on the economy and its markets.
More detail on Ethereum.org
Opensea🌊
Opensea is the largest NFT market all over the world in 2022. We can mint our own NFT for free under their smart contract.
If you want to buy or sell NFT, you will need a crypto wallet. The following section shows you the wallet.
Metamask🦊 → The Crypto Wallet👛
What is Metamask?
It is a widely used cryptocurrency wallet. Buying and transferring crypto such as Bitcoin, and Ethereum can function on their platform.
Metamask provides Chrome extension and mobile apps on both iOS and Android. We suggest beginners use the mobile app because it is easy to use.
Mobile-Friendly
The team announced the new NFT collection feature for mobile users. You can see owned NFTs on the mobile app now.
More detail on Ethereum.org
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Further Reading
Nofer, M., Gomber, P., Hinz, O. and Schiereck, D., 2017. Blockchain. Business & Information Systems Engineering, 59(3), pp.183-187.
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