NFT 101: A Web3 Starter Pack
Everything you need to know to uncover the latest innovation wave and understand the terms NFT, blockchain technology, cryptocurrency, and more.Nov 10, 2022 · 3 Minute Read
What exactly is ‘web3’ and why is it important? New technologies can be complex and hard to comprehend; however, web3 is now at our doorstep, pushing us to accept its relevance and embrace its features.
Companies from various industries are adopting new business models to incorporate web3 components. Digital artists and musicians are creating ‘NFTs’ of their work. Fashion shows and concerts are now being hosted in the ‘Metaverse’. No matter what ‘old’ ways used to work, everyone seems to be onboarding this new Internet era in some shape or form.
Our mission is to prepare readers with basic web3 knowledge to have a better understanding of what is going on in the tech world.
What is Web3?
Let’s go backward… To correctly define web3, we first need to go over web1 and web2. Web1 is the first approach to the internet; a read-only web built to share information using mainly static websites. Users could read content online without having any other interactions. Web2 became a read-and-write web, or social web, which enabled users to create content and have social interactions with other users. Finally, technological advances have brought us web3, a read-write-and-own web. This configuration is ruled by three terms: decentralization, autonomy, and transparency. Users now have the power over and access to their own data, rather than large companies. In addition, users can also own authentic and irreplicable digital property, which brings us to the next topic, NFTs.
What are NFTs?
NFT stands for ‘non-fungible token’, which is a digital asset that cannot be replicated and is backed up by a blockchain. They serve as a smart contract that identifies the ownership and authenticity of an asset. This feature has become more popular as digital artists look for ways to authenticate their work. Another popular feature of NFTs is the exclusive communities behind certain collections, which grant access to holder-only perks and are used as ‘PFP’ (profile pictures) on Twitter. The most popular NFT marketplace is OpenSea, where users can buy, sell, and trade NFTs.
What is Blockchain Technology?
All the above is possible thanks to blockchain technology. This technology is an advancement based on recording information on crypto transactions in different blocks that connect through a chain over time. One of the benefits of using blockchain is peace of mind. In other words, the information can always be backed up and is accessible to everyone. This allows data to be authenticated and shared freely. Within web3, the most popular blockchains are Ethereum and Bitcoin.
What is Cryptocurrency?
A cryptocurrency is a digital or virtual asset designed to be used as a medium of exchange, like the U.S. dollar. These currencies are also backed up by blockchains, as opposed to centralized banks. Some of the most popular cryptocurrencies are Bitcoin, Ethereum, and Cardano. Web3 technology introduces not only digital currencies, but digital wallets where you can safely store your cryptocurrencies and NFTs.
Fun facts about the Web3 community:
- They hang out in the Metaverse, Twitter, Discord, and Telegram.
- They use terms like gm (good morning) and WAGMI (we are all gonna make it).
- Celebrities like Paris Hilton, Snoop Dogg, and Reese Witherspoon have NFTs.
With the NFT ecosystem ever-changing and evolving, this is just the beginning. Now that you’ve read through this beginner’s guide, you should have a better understanding of the mechanics, which is a head start from most.
For those who want to continue their education (and are Miami locals), we invite you to connect with the community at The Gateway: A Web3 Metropolis presented by nft now and Mana Common and powered by MoonPay. Claim your free ticket for our 12-building, two-block takeover of Downtown Miami from November 30 to December 3 during Art Basel 2022.