NFT: How the Blockchain Is Changing Finance
New Financial Technology, or NFT for short, is the rapidly growing field of technology that helps digitalize financial transactions in order to make them more secure and trackable.
Blockchain technology has the potential to revolutionize finance, and it appears that this is already happening. Here's a primer on how blockchain works and how it could impact finance. If you are looking for new and trending NFT projects, pop over here.
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A blockchain is a distributed database that stores transactions chronologically. These transactions are verified by network nodes and recorded in a public ledger. This ledger of transactions is constantly growing as “completed” blocks are added to it with a new set of recordings.
Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin uses a blockchain protocol to manage its own decentralized currency, which makes it different from most centralized payment systems.
How does blockchain work?
When someone wants to make a purchase, they first need to find the retailer’s address on the blockchain. They then send bitcoins (the digital currency used on the blockchain) to that address.
The retailer then confirms that the bitcoin was sent from the buyer’s wallet and updates their record in the blockchain. When the buyer finishes their purchase and leaves the store, they tell the retailer they’re finished and hand over their physical product.