NFT 101

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Cryptocurrency is digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Cryptocurrencies are decentralized networks based on blockchain technology, a distributed ledger enforced by a network of computers.

Non-fungible tokens, or NFTs, are pieces of digital content linked to the blockchain, the digital database underpinning cryptocurrencies such as Bitcoin and Ethereum. Unlike NFTs, those assets are fungible, meaning they can be replaced or exchanged with another identical one of the same value, much like a dollar bill.

There are so many NFTs out there, from art to music to photography, where do you even start? In this section, we'll go through a few important projects and artworks that have launched recently, and have very much defined NFTs for the rest in 2021.

The value of NFTs is based on a multitude of factors, but most notably are market conditions such as supply and demand. The price of NFTs tend to fluctuate quite a bit and are fairly unpredictable, so please be careful when looking to invest into NFTs.

How to invest in NFTs? What to buy? When to sell? These are all very common questions from newcomers to the space. In this chapter, we'll go through all of it, from beginner to advanced. We break down what we like to look at, and ultimately how to choose successful projects.

If you want to participate in the NFT craze, an NFT marketplace is your gateway for the purchase and sale of these digital assets, from art to music to entire virtual worlds. Think of NFT marketplaces as your Amazon or eBay of the digital realm.

Ethereum is a cryptocurrency that you can purchase just like any other cryptocurrency. There are a variety of different ways to purchase Ethereum, but most notably are cryptocurrency exchanges. Depending on where you reside, there may or may not be different restrictions that you should be aware of.

MetaMask allows users to store and manage account keys, send and receive Ethereum-based cryptocurrencies and NFTs and securely connect to decentralized applications through a compatible web browser or the mobile apps built-in browser.

Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. "Gas limit" refers to the maximum amount of gas (or energy) that you're willing to spend on a particular transaction.

Ether, or ETH, is the native token of the Ethereum blockchain. Wrapped ETH, or WETH, refers to an ERC-20 compatible version of ether. In order for ETH to be exchanged with other Ethereum-based tokens, it needs to be wrapped into WETH. Wrapping ETH does not affect its value, 1 ETH = 1 WETH.

Bitcoin and other proof-of-work cryptocurrencies (such as Ethereum) require large amounts of energy, due to the computations needed for mining. Not all cryptocurrencies have significant environmental impacts. In fact, many of them do not use mining at all.