May 17, 2022

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How NFTs are invading our digital world

Stephen Walrich
Photo: Wallrich AM

We live in an age where investing in cryptocurrency is slowly becoming mainstream and new trends are appearing regularly with the potential to become the next big buzz in the crypto world. The technology behind non-fungible tokens (NFTs) is quickly emerging as an attractive tool for new investment methods. Be it magazines, celebrities or reputable companies, NFTs are on everyone’s lips. But what is behind the three letters? Are icons just an illusion? Or does the idea have a future and the possibility of changing the Internet dramatically in this era?

To understand what NFTs are and how they work, we must first look at blockchain technology. In general, a blockchain is a type of database consisting of blocks that are intertwined together like pearls on a chain. On the one hand, each block contains the actual data stored in it, and on the other hand, it contains a unique hash value that ensures that the content of the data is not altered. In addition to its hash value, each block in the chain knows the hash value of the previous block.

In this way, the blockchain authenticates itself in some kind of chain reaction, so if the hash is changed somewhere in the chain, the chain will break. Thus, the data in the blockchain is more secure from tampering than in regular databases. So called NFTs benefit from this aspect.