10 Commonly Asked Questions in Web3, Crypto, & NFTs
Keeping up with Web3, Cryptos, and NFTs can be extremely tedious, time-consuming, and honestly stressful, especially if you are brand new to the space. From the infinite tweets and Discord groups to news headlines and venture capital investments, where should you even start?
In this blog post, we’ll review a curated list of the top 10 questions in the industry and answer them for you. To understand the benefits of NFT ticketing, we believe you must first comprehend the basics — so we want this to serve as a reference point for you along your journey!
What is an NFT?
NFT stands for non-fungible token. It is a unique digital cryptographic token that represents ownership of any real-world object such as art, music, and real estate. It is essentially a digital certificate of authenticity or proof that you are the owner of whatever item it may be, and this is directly stored in the blockchain.
What is the blockchain?
A blockchain is a distributed, secured, and decentralized database. It is not controlled by any central entity and cannot be modified or altered in any way. Data is represented by transactions on the blockchain, these transactions are stored in chronological groups known as blocks, making it easier and more transparent to locate and analyze. There are different types of blockchains but the underlying concept is generally the same across all of them.
Are cryptocurrencies and blockchain the same?
Cryptocurrencies are digital money that store value, just like regular currencies. Blockchain is the technology that enables cryptocurrencies and records all transactions for that cryptocurrency. For example, the Ethereum blockchain is the “decentralized database” that stores every Ether transaction. Cryptocurrencies provide anonymity and blockchains provide transparency. While every transaction is traceable on the blockchain, you stay anonymous.
What is a crypto wallet, and how to create one?
Crypto wallets are what hold the private keys to your cryptocurrencies. Private keys are the passwords that allow you to access your cryptocurrencies and keep them safe. Crypto wallets allow you to send and receive cryptocurrencies such as Bitcoin, and mint NFTs. They can be hosted, non-custodial, or hardware. Hosted wallets are created and managed for you by a 3rd party (just like a bank account), non-custodial provides you the software but the security of your password (private key) is your responsibility, and lastly, hardware wallets are physical devices like flash drives that securely store your private keys offline and everything is managed by you.
Web3 Meaning — what is it?
Web3 is literally the next phase of the internet, decentralized and free from central corporate control. In the past, we had Web1 and Web2, which started as read-only technologies like email, chat, and forums and then evolved into a collaboration of reading and writing, bringing us to social media, podcasts, and platformization technologies. Now, Web3 is the decentralization of platforms and is powered by blockchain technology and artificial intelligence. Web3 liberates us from relying on corporations and allows creators new opportunities to monetize work in a community-driven and open method while having the ability to assist with key decisions in some cases.
What is the Metaverse?
The metaverse is a virtual-reality-driven 3D version of our current universe. It is basically the virtual duplicated of life, integrated with a variety of social aspects such as gaming, working, and attending events. Blockchain is the main technology powering the metaverse and objects within it are represented as NFTs, so things such as virtual clothing accessories, land, houses, etc. The most interesting aspect of the metaverse is it is creator-friendly and enables users to make money in a variety of ways. There are different metaverses and not a single one, including Decentraland and The Sandbox.
What is a DAO?
DAO stands for decentralized autonomous organization. It is like a corporation but without a central entity in complete control of the entire organization. Decisions in the company are made from the bottom-up, governed by a community or everyone involved, with the rules of the organization set as a smart contract directly on the blockchain. DAOs are extremely beneficial for the creator economy, as they open up opportunities for anyone to join, contribute, and monetize their efforts while helping make key decisions.
What are ICOs and token launches?
ICO stands for initial coin offering, which is when a startup typically operating in the crypto space creates its own crypto coin or token and offers it for sale to investors. Depending on the ICO, investors are usually interested in the utility the coin or token has in relation to the company’s product or service, or are simply buying to gain a stake. ICOs are not heavily regulated so it’s advised you take extreme caution and conduct thorough research when considering investing in one.
Are crypto payments widely accepted?
Businesses are increasingly offering crypto as payment options for their products and services. Even non-profits have also started offering this to donators. Companies including Shopify, Gamestop, Wikipedia, Microsoft, KFC, and many more are starting to accept Bitcoin as a payment method. For companies looking to integrate this into their checkout processes, there are three key steps to follow: setting up a crypto wallet, finding the right plugin (common for e-commerce platforms) or crypto payment processor (typically a company like Coinbase), and lastly turning your crypto into physical money if desired.
What is NFT Ticketing?
Event tickets can now be minted, sold, and used as non-fungible tokens. NFT tickets can have special features embedded into them such as exclusive event access, perks, beverage deals, and whatever the creator wants to include. Since the tickets are now NFTs, they become digital collectibles you can keep, sell, or trade. Ownership is directly stored on the blockchain, allowing transparency, security, and the elimination of fraudulent and scalping activities. We wrote a detailed article here describing the benefits in detail!