NFT is said to be the digital world’s future. And there are multiple hands involved in NFT. Metaverse, blockchain, cryptocurrencies, and DeFi are the key themes.
Trading of digital art became more transparent and decentralized with Metaverse, all while remaining safe on the blockchain.
Fashion labels and corporations are starting to promote themselves by handing out NFTs.
In order to buy and sell anything in Metaverse world, you need to have metaverse tokens same like your currency (dollar, Euro, etc.).
Every transaction is recorded in the blockchain and is safe and secured. Transactions related to buying and selling of NFTs are also recorded.
Do you know? Most of the NFTs are recorded and stored in the Ethereum blockchain.
1. What is NFT and Metaverse ?
NFT is our digital token. Digital token to acquire rare assets which nobody has except you. And assets include art, videos, audios, and many more.
On the other hand, Metaverse is a vast platform wherein you can purchase and sold NFTs and several digital assets. Remember, the metaverse is a virtual world.
The difference between NFT and Metaverse lies here.
The KEY DIFFERENCE between NFT and metaverse is, NFT is a digital asset, which is rare, unique and indestructible. Wherein, the metaverse is a virtual world or a virtual presentation of reality, where you can buy and sell NFTs and uncountable digital assets in different forms.
Let’s look into a deeper picture of NFT and metaverse.
- NFTs are based on blockchain technology through which you can buy and sell digital assets.
- In Metaverse, you can buy and sell NFTs using their predetermined coins present on the virtual world.
- NFTs were launched on 2014 but our Metaverse is old player. The metaverse concept was coined in 1992.
- The power card of NFTs is → a solid proof of ownership to the person who has purchased it. Metaverse has the potential to change the future of education system.
- NFTs can be stolen by hacker if not kept properly. But Metaverse is a virtual world and creators are not fool that they will not protect their own digital world, from hackers.
2. What is NFT and Blockchain?
NFT → Non-Fungible Token. These digital tokens are rare and one-of-a-kind. It includes arts, digital paintings, avatars, videos, gifs, audios and even a TWEET.
Yes, a tweet, CEO of Twitter, Jack Dorsey, sold first-ever tweet for $2.9 million as an NFT.
So you can determine items that are rare, and can be sold for millions and billions.
You can purchase and sell NFTs via cryptocurrency. And there are numerous platforms available to buy and sell NFTs.
NFTs are running on the advanced technology known as blockchain technology, which in simple words is known as digital ledger.
All transactions which occurred buying and selling NFTs are recorded. Blockchain technology uses a peer-to-peer network to record all transactions of cryptocurrencies as well as digital assets(NFT).
NFTs linked to → Cryptocurrencies → Blockchain Technology
What is the difference between NFT and blockchain?
The KEY DIFFERENCE between NFT and blockchain is, all transactions related to NFT is stored in blockchain technology. Blockchain is advanced technology that no hacker can tailor and can get access to it.
Let’s check the deeper aspects of NFT and blockchain
- Both NFT and blockchain has a deeper aspect. Blockchain keeps all data secured. And those data and information cannot be tampered. NFT is a digital file or media. It can be accessed by anyone and needs to be secured.
- NFTs are present in digital form and not in physical form. Blockchain is present in both physical as well as digital form. It records data and keep it safe from intruders.
- NFTs are rare items which can be sold for profit. Blockchain is not as asset, it is a ledger which records transactions. And it can’t be exchanged for any object or product.
- NFTs can be purchased by many people. Blockchain is mostly used by renowned companies, popular-businessmen to safeguard their data and information.
- Blockchain is a digital ledger or recorder which records all transactions of NFTs in its digital book. You can say NFT is slightly a part of blockchain.
3. What is NFT and DeFi?
Feature of NFT → Non-interchangeability.
It refers to, you cannot exchange an NFT with another NFT. Why? Because NFTs are unique in their own way. Definitely you cannot exchange a $500 VIP ticket of BTS with an ordinary movie ticket.
The digital asset (NFT) belongs to the person who have paid for it. NFT can be art or music and some time unseen videos of popular actor.
NFT is a digital art, you receive ownership of it and a digital file of NFT. You are not going to receive any actual painting,or in hand audio, or Salman Khan will perform for you, if you purchased his NFT.
DeFi→ Decentralized Finance. DeFi facilitates financial proceedings and services. DeFi operates on smart contracts. And smart contracts are a part of blockchain technology. It also eliminates unnecessary intermediaries.
What is the difference between NFT and DeFi?
The KEY DIFFERENCE between NFT and DeFi is, NFT is an asset whereas DeFi is an internet financial system. It enables users to undergo financial transactions.
- Full form of NFT → Non-fungible token & DeFi → Decentralized finance
- DeFi purpose is to eliminate intermediaries and make sure financial transactions are conducted smoothly. Whereas NFTs are digital asset which is present in digital files and it may be in form of art, videos, audios, etc.
4. What are NFTs and Cryptocurrency?
NFTs are not interchangeable. You cannot exchange an art NFT with audio NFT. As there is different store of value in each NFT. And every single NFT created is unique in its own way.
Cryptocurrency are required in digital world. It is a store of value. It allows you to sell and buy goods in both virtual and real world. Cryptocurrencies are fungible in nature, that is, it can be exchanged for another crypto, but not in case of NFTs.
What is the difference between NFTs and cryptocurrency?
The KEY DIFFERENCE between NFTs and cryptocurrency is, Cryptocurrency is a digital currency and has a store of value, and it can be exchanged for crypto. But NFTs are not fungible. They cannot be exchanged due to its rarity, indivisibility, indestructibility and one-of-a-kind.
For example, if you have a cryptocurrency 1 ETH and your friend too has crypto of 1 ETH, which can be exchanged. But if you have a NFT of THE MERGE → Most expensive NFT and your friend has a kitty NFT, will you exchange for it?
NO! Correct. As they are both NFTs but have a speciality in itself.
Each NFT depends on a decentralized advanced stage in light of blockchain innovation, and computerized resources can’t be exchanged or supplanted.
On the web, there are particular stages where NFTs can be sold and purchased.
They’re kept in an advanced record and traded over the web.
The Metaverse’s cash is digital money, and each Metaverse has its own arrangement of coins. They’re utilized to pay for everything from NFTs to virtual land to symbol shoes.
Cryptographic forms of money fill in as a connection between the physical and virtual universes. They permit us to work out the worth of advanced resources in government issued money and their profits after some time.
The liquidity of crypto on trades all over the planet additionally permits financial backers to acknowledge benefits by selling coins and NFTs straightforwardly to purchasers.
Because of NFTs, clients can have unlimited authority over their advanced resources in the Metaverse. Blockchain innovation supports these virtual universes by giving permanent confirmation of possession.
There are likewise different Metaverses. Furthermore, various organizations are chipping away at them, each with their own arrangement of organization conventions.
These Metaverses are pursuing a similar objective: permitting more cross-over between our physical and advanced lives.
Cryptographic forms of money are computerized resources that are utilized as a vehicle of trade and a store of significant worth in these virtual universes.
While cryptos are principally utilized for dealing with exchanges and different undertakings connected with the actual world, cryptographic forms of money are computerized resources that are utilized as a mode of trade and a store of significant worth in these virtual universes.
NFTs and digital forms of money depend on the equivalent basic blockchain innovation. NFT commercial centers may likewise expect individuals to buy NFTs with a digital currency.
Nonetheless, digital currencies and NFTs are made and utilized for various purposes.