Overview of the Web 3.0 Ecosystem: NFTs, Blockchain, and Crypto

Digital ownership

Digital assets can include anything from our favorite virtual concert ticket to the artwork in the virtual home within the metaverse. These resources, which give life to the virtual world and enable us to interact socially and conduct business in exciting ways, include virtual land, music, videos, and avatars. Like our car or favorite book, owning a digital asset means it’s our property to use or change. But just like in the real world, we need permission to use someone else’s digital stuff.

Digital ownership usually revolves around two things:

  • Control and access: Being in charge of a digital asset means digital ownership. This implies that we may use, display, or distribute it only in ways the website or its creator approves. Blockchain facilitates this by making transactions transparent and safe.

  • Provenance and authenticity: A digital property’s provenance is its ownership and distribution history. It’s feasible to verify that a digital item is authentic or original by following the provenance. In the digital world, where copying is easy, proving the authenticity of an item is crucial.

NFT (non-fungible tokens)

Non-fungible tokens, or NFTs, are essentially unique digital certificates that prove the ownership of digital content like music and art. They are kept on a blockchain. Unlike traditional digital currencies like cryptocurrencies, NFTs are indivisible. This means that an NFT can’t be split into smaller parts, in the same way, we can’t divide a unique piece of artwork into smaller, separate pieces while maintaining its original value and identity. For example, we can divide $100 into five $20 bills, but an NFT, representing a specific item or piece of content, can’t be broken down in this manner. This indivisibility underscores the uniqueness and value of each NFT.

Get hands-on with 1200+ tech skills courses.