Here are some of the terms you will probably encounter when dealing with Web3 and virtual gifts:
Blockchain is a record-keeping technology designed to make it impossible to hack the system or forge the data stored on it, thereby making it secure and immutable. It is a type of distributed ledger technology (DLT), a digital system for recording transactions and related data in multiple places at the same time.
As one of the oldest and best-known virtual currencies, Bitcoin’s value has risen significantly since its launch in 2009, although it has dipped in the last year. Bitcoin supply is limited to 21 million coins of which 18.77 million have already been mined. Thus, Bitcoin has a high return potential with a possibility of reaching prices close to $500,000 by 2025.
Cryptocurrency, (also called crypto), refers to any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies are not subject to a central issuing or regulating authority. A decentralized system such as blockchain technology is used to record transactions and issue new units.
Decentralized ecommerce enables users to process transactions without any central control (including banks, regulators and other third parties), which charge high fees and have the power to block transactions. This system is based on blockchain technology and smart contracts.
NFTs (non-fungible tokens) are tokenized digital files with rights of ownership. These digital assets may take the form of a video clip, gaming accessories, sports cards, artwork, music and even gaming real estate. When purchasing an NFT, the buyer’s right of ownership is registered on blockchain. No one can modify the record of ownership or replicate an authenticated NFT.