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#Metaverse #NFTs #Bitcoin

What is Bitcoin?
Bitcoin is the first ever cryptocurrency created using blockchain technology. The concept of Bitcoin was originally proposed by Satoshi Nakamoto in 2009 as a decentralized peer-to-peer digital currency based on the SHA-256 protocol.

Bitcoin is a unique form of digital currency - it is fully open sourced without any central authority where anyone can take part. Bitcoin allows for fast and anonymous transactions with low transaction fees. Since the absolute supply of BTC has a fixed issuance of 21 million Bitcoins by the year 2140, it may theoretically increase in value over time.

What is an NFT?

NFT stands for non-fungible token.

In economics, a fungible asset is something with units that can be readily interchanged - like money.

With money, you can swap a £10 note for two £5 notes and it will have the same value.

However, if something is non-fungible, this is impossible - it means it has unique properties so it cannot be interchanged with something else.

It could be a house, or a painting such as the Mona Lisa, which is one of a kind. You can take a photo of the painting or buy a print but there will only ever be the one original painting.

NFTs are "one-of-a-kind" assets in the digital world that can be bought and sold like any other piece of property, but they have no tangible form of their own.

The digital tokens can be thought of as certificates of ownership for virtual or physical assets.

How do NFTs work?
Traditional works of art such as paintings are valuable because they are one of a kind.

But digital files can be easily and endlessly duplicated.

With NFTs, artwork can be "tokenized" to create a digital certificate of ownership that can be bought and sold.

As with crypto-currency, a record of who owns what is stored on a shared ledger known as the blockchain.

The records cannot be forged because the ledger is maintained by thousands of computers around the world.

NFTs can also contain smart contracts that may give the artist, for example, a cut of any future sale of the token.