.png){kind=small}
Blockchain technology has brought about a paradigm shift in digital asset ownership and management, with NFTs being a key component. The following information will help you understand the world of NFTs and blockchain:
Blockchain: A distributed ledger technology that is decentralized and records transactions across several computers in an unchangeable and tamper-resistant manner.
Decentralization is the transfer of power from a single, supreme authority to multiple entities. It alludes to the lack of a single controlling authority about blockchain.
Cryptocurrency: An electronic money that runs without the assistance of a central bank and is protected by encryption.
Smart contracts are self-executing agreements where the terms are encoded directly into the code. When certain requirements are satisfied, they automatically run and enforce.
Consensus Mechanism: The process via which a decision is made, transactions are confirmed, and they are appended to the blockchain.
Verifying transactions and adding them to the public ledger (the blockchain) is called mining. Additionally, it alludes to the procedure that creates new bitcoins or certain other cryptocurrencies.
A node is a computer that keeps a copy of the whole blockchain and verifies transactions as part of the blockchain network.
Oracle - Oracles monitor and verify real-world information, such as events and identities, that smart contracts initially don’t have access to. Oracles provide a trusted data feed to smart contracts, allowing them to monitor relevant information and automatically execute programmed code.
RWAs Tokenization and NFT Terms:
Non-fungible tokens, or NFTs, are blockchain-based digital assets that serve as a means of proving ownership or authenticity of a special object or work of art.
Tokenization is the process of turning an asset's rights into a blockchain-based digital token.
ERC-721: An Ethereum blockchain standard for NFTs that offers the bare minimum of tracking and transfer capabilities.
ERC-1155: An Ethereum multi-token standard that allows an infinite number of tokens, including fungible and non-fungible tokens, to be managed by a single contract.
Metadata: Details about an asset, including its author, description, and any other pertinent information, that are linked to an NFT.
Marketplace: An internet-based venue for the purchase, sale, and exchange of NFTs.
Gas fees are the expenses associated with carrying out a transaction or carrying out a contract on the Ethereum network.
Smart Contract Audit: The process of reviewing the code of a smart contract to ensure it is secure and functions as intended. This is crucial to prevent bugs and vulnerabilities that could lead to lost funds or other exploits.
Royalties: royalties are a way for creators to receive a percentage of sales each time the NFT is sold on the secondary market. This is often hardcoded into the NFT smart contract.
Whitelisting: A process by which a developer allows certain wallet addresses early or exclusive access to participate in events such as an NFT drop or a token sale.
Digital Twin: A digital representation of a physical asset on the blockchain. NFTs can serve as digital twins, linking physical items to their digital identities, thus enabling improved verification and tracking.
Real-World Asset Tokenization:
Tokenizing physical assets from the real world, such as property, artwork, or collectibles, into digital tokens on a blockchain is known as real-world asset tokenization. This procedure brings traditional assets into the digital sphere by enabling more liquidity, fractional ownership, and simpler ownership transfers.
Fractional Ownership: This refers to breaking down the ownership of an asset into smaller parts or fractions, which can be individually owned by different people. In the context of NFTs, this means that an NFT representing an asset (like a piece of art, real estate, or a collectible) can be divided into several tokens, allowing multiple individuals to own a share of the asset.
DualMint proposed a revolutionary concept called dual provenance, which is a dual-layered verification procedure on the blockchain that combines digital and physical data. This method guarantees an unchangeable, transparent record of the provenance, authenticity, and history of an object, which is especially important for commodities where provenance is crucial in determining value.
