00;00;00;00 - 00;00;15;22
Speaker 1
So I have kind of a basic idea of what an NFT is and kind of what the blockchain is. But beyond that, I'm not really sure. And I want to get a deeper understanding of all that so I can potentially buy one and make one.
00;00;15;24 - 00;00;40;24
Speaker 2
Great. Let's break it down further. To start it, NFTs are created through a process called minting, which involved writing the NFT. Metadata such as the name, description and the digital pilot represent onto a blockchain. This ensures the token is unique and traceable back to its origin. The blockchain, which underpins NFT, is a decentralized LED board that records all transactions across a network of computers.
00;00;40;27 - 00;01;04;24
Speaker 2
This decentralized nature ensures that NFTs are secure and cannot be easily altered or duplicated. To buy an NFT, you'll need a digital wallet that supports NFTs and some cryptocurrency, usually Ethereum. You can then use platforms like OpenSea, Rarible or Foundation to buy and trade NFT. If you want to create your own NFT, you'll need to add one to the blockchain that supports NFT.
00;01;04;26 - 00;01;25;15
Speaker 2
Ethereum at the most common. To set up a digital wallet and fund it with cryptocurrency. Three. Select an NFT marketplace that allows minting like OpenSea or wearable, or follow the platform tab to upload your digital file. Add metadata and mint your NFT. Does that help clarify things? Would you like more details on a specific part?
00;01;25;18 - 00;01;34;24
Speaker 1
Yeah. Let's go deeper into the wallet process of how I not exactly how I do it, but how it kind of works.
00;01;34;26 - 00;01;46;23
Speaker 2
Sure, a digital wallet is essential for interacting with blockchain applications, including buying and creating an RFP. Here's how it works in a bit more detail. One. Set up.
00;01;46;25 - 00;01;52;16
Speaker 1
I like to go into more about how the digital wallet kind of works.
00;01;52;19 - 00;02;18;27
Speaker 2
Digital wallet are crucial for interacting with blockchain network and managing cryptocurrency. Here's a deeper dive into how they work. One. Public and private keys. At the core of digital wallet, a cryptographic key pair. Public key. This is derived from your private key and acts like an account number. It's shared with others to be fun. Private key. This is a secret key that allows you to access and manage your fund.
00;02;19;01 - 00;02;42;05
Speaker 2
It's crucial to keep this key secure because anyone with it will control your wallet. Two types of wallet. Hot wallet. These are connected to the internet and are more convenient for daily transactions. Examples include mobile app e.g. MetaMask and web based wallet e.g. Coinbase wallet cold wallet. These are offline and more secure for storing large amounts of cryptocurrency.
00;02;42;06 - 00;03;20;28
Speaker 2
Examples include hardware wallet e.g. ledger, tether and paper wallet. Three wallet software wallets are typically software programs that allow you to manage your key and interact with blockchain network. They provide emphasis for viewing your balance and transaction history, sending and receiving cryptocurrency, connecting to decentralized applications that like NFT marketplace or transaction proof. Initiating a transaction. When you send Fund or momentum NFT, you initiate a transaction through your wallet by specifying the recipient's address and the amount of cryptocurrency finding the transaction.
00;03;21;00 - 00;03;43;12
Speaker 2
Your wallet uses your private key to create a digital signature, which verifies that you are the owner of the fund and authorizes the transaction. Broadcasting. The transaction is then broadcast to the blockchain network. Validation network validator. Miner or node. Verify the transaction and add it to a block on the blockchain. This process may involve paying a transaction fee.
00;03;43;13 - 00;04;11;09
Speaker 2
Gas fee on Ethereum. Pub security measure encryption wallets often encrypt your private key and other sensitive information. Backup and recovery wallets provide a seed free, a series of word that can be used to recover your wallet if you lose access. It's crucial to store this phrase securely offline. Two factor authentication two for some wallet offer additional security through two for requiring a second form of verification.
00;04;11;11 - 00;04;35;07
Speaker 2
Think interaction with DApp. Modern wallet can interact with decentralized application. Connecting to DApp. You can connect your wallet to adapt by authorizing the connection. This allows the DApp to view your public address and initiate transactions on your behalf. Approving transactions. When a DApp requests a transaction, e.g. buying an NFT, you'll receive a prompt in your wallet to approve or reject it.
00;04;35;14 - 00;04;45;01
Speaker 2
Your private key is used to find the transaction, but it is never exposed to the data. Do you have any specific questions or aspects of digital wallets you'd like to explore further?
00;04;45;03 - 00;04;53;12
Speaker 1
Yeah, if the company that runs MetaMask goes out of business, what happens to my NFT?
00;04;53;14 - 00;05;15;16
Speaker 2
If MetaMask were to go out of business? Your NFT would remain safe as long as you have your private keys or seed raised. This is because Let Them Act is just a tool for interacting with the blockchain. You're not a custodian of your asset. Here's how it works. One. Ownership and storage. Your NFT and cryptocurrency are stored on the blockchain, not within MetaMask itself.
00;05;15;19 - 00;05;40;07
Speaker 2
MetaMask merely provides an interface to access and manage them using your private key. Two. Private key. As long as you have your private key or phrase, you can access your NFTs in cryptocurrency with any other compatible wallet. For example, you could import your MetaMask wallet into another wallet like Trust Wallet, mind the wallet or ledger. Three. Importing to another wallet using seed free.
00;05;40;10 - 00;06;07;02
Speaker 2
Most wallets allow you to import an existing wallet using your seed phrase. That process will restore your wallet, including access to all your asset using private key. Alternatively, you can import your private key directly into another wallet. For security, it's essential to keep your seed phrase and private key secure and backup offline. This ensures that you can always regain access to your asset, regardless of what happened to the wallet service provider.
00;06;07;03 - 00;06;21;17
Speaker 2
To summarize your NFT the face as long as you maintain control over your private key or seed phrase, even if MetaMask or any other wallet service goes out of business, you can still access your asset using another compatible wallet.
00;06;21;19 - 00;06;45;00
Speaker 1
So you can have two active wallets and access the same NFT through either of those wallets at the same time. So let's say I had a MetaMask wallet and another similar type of wallet. Could I use either of those to you to to gain access to a single NFT?
00;06;45;02 - 00;07;05;23
Speaker 2
Yeah, you can use either a MetaMask wallet or another similar type of wallet to gain access to a single NFT. As long as both wallets support the blockchain network where the NFT is stored, typically you just need to transfer the NFT from one wallet to the other. The access to the NFT is tied to the private key of the wallet holding it.
00;07;05;25 - 00;07;09;05
Speaker 1
So how expensive are gas fees?
00;07;09;08 - 00;07;38;26
Speaker 2
The cost of gas we can vary significantly based on the blockchain network and its current congestion. For example, on Ethereum gas, these can range from a few dollars to over $100 during peak time on less congested networks like Binance Smart Chain or Polygon, gas fees are typically much lower, often just diffused out to a couple of dollars. The exact amount depends on network demand and transaction complexity, and the current price of the network's native cryptocurrency.
00;07;38;29 - 00;07;44;14
Speaker 1
So what's the appeal? To go to one with a higher gas fee?
00;07;44;16 - 00;08;10;29
Speaker 2
The appeal of using a blockchain with higher gas, such as the theorem, often lies in its robust ecosystem security and the breadth of applications and services available. Ethereum, for example, has a large number of decentralized applications. The app, NFTs and DeFi platform, its long standing reputation and widespread adoption can offer better security, liquidity, and interoperability compared to newer or less congested network.
00;08;11;01 - 00;08;14;10
Speaker 1
So do these gas fees change day to day?
00;08;14;12 - 00;08;36;01
Speaker 2
Yet gas, often referred to as gas bead, can change day to day and even minute to minute. They fluctuate based on network congestion and the demand for transaction during periods of high activity, such as during popular NFT drop or significant market movement gas, these can spike dramatically. Conversely, during quieter time, these tend to be lower.
00;08;36;04 - 00;08;41;08
Speaker 1
Is there any single individual dictating these fees?
00;08;41;10 - 00;09;10;03
Speaker 2
No, there isn't a single individual dictating Gatsby's on blockchain network. Gas fees are determined by market dynamics and the decentralized nature of the network. Users set their own gas prices, and miners or validators prioritize transaction based on BP. The more congested the network, the higher the fees users are willing to pay to get their transaction processed quickly. It's a supply and demand mechanism, rather than being controlled by any single entity.
00;09;10;05 - 00;09;14;26
Speaker 1
How long can transactions take in higher demand times.
00;09;14;28 - 00;09;34;25
Speaker 2
During times of high demand? Transactions can take anywhere from several minutes to even hours to be confirmed, depending on the speed you are willing to pay. If you set a low gas during a period of high congestion, your transaction might be delayed significantly or even remain unprocessed until the network demand decreases.
00;09;34;27 - 00;09;40;26
Speaker 1
Does this specific length of time that the transaction takes have a specific name?
00;09;40;29 - 00;09;51;29
Speaker 2
Yet the specific length of time that a transaction takes to be confirmed on a blockchain is often referred to as transaction confirmation time or block confirmation time.
00;09;52;01 - 00;09;55;22
Speaker 1
These transactions of buying NFTs ever fail.
00;09;55;25 - 00;10;17;25
Speaker 2
When a transaction failed, it doesn't bind or complete, meaning the intended action, like transferring hokum, doesn't happen. However, the gas fees used to attempt the transaction are still deducted from your account to complete the intended transaction. You'll need to correct the issue, such as increasing the gas or fixing an error and resubmit it.
00;10;17;27 - 00;10;25;15
Speaker 1
So if these transactions fail, is it always because of something that the buyer failed to do?
00;10;25;17 - 00;10;46;13
Speaker 2
Not only while user errors like setting too low a Gatsby or providing incorrect transaction detail, are common causes of transaction failure. Other factors can also contribute issues within smart contract, network congestion or temporary network issues can also lead to transaction failures, which are beyond the buyer control.
00;10;46;16 - 00;10;55;09
Speaker 1
So if a transaction fails because of something beyond the buyer's control, does the buyer still incur the gas fee?
00;10;55;11 - 00;11;11;07
Speaker 2
Yes. Even if a transaction failed due to reasons beyond the buyer's control, the gas is still incurred. But Gatsby is used to compensate the miners or validators for their work in processing the transaction. Regardless of its success or failure.
00;11;11;10 - 00;11;13;08
Speaker 1
This seems like a turnoff.
00;11;13;11 - 00;11;39;20
Speaker 2
I can understand why it might bloom that way. High. An unpredictable Gatsby, especially for failed transactions, can be frustrating. However, many blockchain networks are working on solution to improve efficiency and reduce costs. For example, Ethereum is implementing upgrades aimed at lowering gas heat and increasing transaction speed. Additionally, some industries opt for alternative blockchains with lower fees and faster transaction.
00;11;39;23 - 00;11;49;17
Speaker 1
What are some other problems or turn offs like this that may be keeping the public from jumping into NFTs sooner?
00;11;49;20 - 00;12;17;21
Speaker 2
Double factor can deter the public from getting into NFT, such as one high gas. As we discussed, unpredictable and often high transaction fees can be a major turnoff to environmental concerns. The energy consumption of some blockchain network, particularly those using proof of work, raises environmental concern. Three complexity the process of buying, storing, and managing NFTs can be complex and intimidating for newcomers or security risks.
00;12;17;23 - 00;12;47;11
Speaker 2
Concerns about wallet security, phishing scam, and the potential for losing access to asset can make people hesitant. Market volatility the value of an API can be highly volatile, making them a risky investment. Big, unclear regulation the regulatory environment for NFT is still evolving, which can create uncertainty and potential legal writ. Seven. Quality control the market is flooded with NFT, and distinguishing valuable, authentic items from low quality or fraudulent ones can be challenging.
00;12;47;13 - 00;12;53;06
Speaker 2
These issues collectively contribute to hesitancy among the broader public regarding NFTs.
00;12;53;09 - 00;13;20;05
Speaker 1
So let's say I'm people and I spend that $60 million or $69 million that I sold that one piece for. That's the most expensive NFT. And I spend all that money, I go into debt and, hey, I need another $10 million. What keeps me from just minting another one of the same exact thing and selling it as well?
00;13;20;07 - 00;13;45;26
Speaker 2
If you, as people, were to mint another NFT of the same exact piece and try to sell it, that all factors could complicate that one. Originality and authenticity the original NFT is. Value largely comes from its uniqueness and the fact that it is the one and only of that piece. Minting another identical NFT could undermine the perceived value and authenticity of both the original and the new NFTs reputation damage.
00;13;45;28 - 00;14;12;17
Speaker 2
Doing this could severely damage your reputation, collector, and the broader community may view this as a breach of trust, and a sign that future investment in your work are risky. Three legal and contractual issues. Depending on the terms under which the original NFT was sold, there might be legal or contractual restrictions preventing the creation of a duplicate. Violating these terms could result in legal consequences or market reaction.
00;14;12;20 - 00;14;30;05
Speaker 2
Collectors and investors might react negatively, leading to a loss of confidence in your work and a potential drop in the value of all your NFT. While technically possible, minting an identical NFTs could have significant negative repercussions for your credibility. Market standing and future sale.
00;14;30;08 - 00;14;44;10
Speaker 1
Okay, so let's say that I want to buy an NFT maybe to start for under $100. What would you recommend that I look at? And how can I tell the utility of,
00;14;44;13 - 00;15;10;23
Speaker 2
An NFT to start buying an NFT for under $100? There are a few tips and considerations. One explore different marketplaces. Look for NFTs on various marketplaces like OpenSea. Rarible and mint will these platforms often have a wide range of prices and capability to bulk up on emerging artists? Consider buying from emerging artist who may offer their work at more affordable prices compared to established name.
00;15;10;25 - 00;15;36;16
Speaker 2
Three look for utility. Some entities come with added value or utility beyond just the art itself. This can include access some NFT servers, access tokens or exclusive content. Event for communities. In-game item NFTs used in blockchain based games can provide in-game benefits or item collectible. Certain NFTs are part of collectible series, and owning one might give you benefits within a larger ecosystem.
00;15;36;17 - 00;16;01;18
Speaker 2
For check community and roadmap research, the community and development plan behind an NFT project, a strong, active community and a clear, achievable roadmap can indicate potential utility and future value, but evaluate the artist's reputation. Look into the artist or creator's background, previous work and reputation in the community. Established while promising artist may add more long term value to your purchase.
00;16;01;20 - 00;16;27;07
Speaker 2
Six read reviews and discussion. Engage with NFT communities on social media platforms like Twitter, discord, or Reddit to gather insight and opinions about different project amenity well, practical. Step one create a wallet. Set up a cryptocurrency wallet like MetaMask to fund your wallet. Purchase some cryptocurrency like ETH for Ethereum based NFT and transfer it to your wallet. Three browse and buy.
00;16;27;10 - 00;16;38;26
Speaker 2
Explore the marketplace, then filter by price and make your purchase. By following these steps, you can find an NFT within your budget that also offers some utility or potential for future value.
00;16;38;29 - 00;17;10;15
Speaker 1
So say I want to go to OpenSea and look for NFTs that have utility along the lines of maybe partial ownership of something or, profit sharing or something like that. How do I find those kind of NFTs? Or do I have to search just kind of generally on the site and look at each page with each NFT and read like the descriptions and stuff.
00;17;10;17 - 00;17;39;26
Speaker 2
Finding NFTs with specific utility, like partial ownership or profit sharing on platforms like OpenSea can require a bit of research, as there isn't always a straightforward filter for these features. Here are some steps you can take to streamline the process. One you keyword start by using specific keywords in the search bar keyword like profit sharing, partial ownership, revenue, fractional, or utility can help narrow down your search to NFTs that mention these features.
00;17;39;29 - 00;18;05;11
Speaker 2
Two. Explore category check the categories or collection of on the marketplace that might be more likely to include these types of NFT, for example, look under financial investment or other relevant category. Three read description for each NFT that catches your interest, read the detailed description provided by the creator. The utility features are often outlined there. Four. Visit project website.
00;18;05;14 - 00;18;32;16
Speaker 2
Many NFT projects have their own website or whitepaper, where they detail the specific utilities and benefits of owning their NFT. Links to these resources are usually available in the NFTs. Description. Join communities engage with NFT communities on social media platforms like Twitter, Discord, or Telegram. Many projects promote their NFT and discuss their utility and community. You can ask questions and get recommendations from other members.
00;18;32;21 - 00;19;03;27
Speaker 2
Thick check from Verified project. Look for a verified project or collections on the marketplace, as these often have more detailed and reliable information about their utility. Use external resources websites like DApp, radar, NFT marketplaces, blogs, or NFT related new file often feature article reviews about NFTs with unique utility. These can guide you toward interesting projects. While it does involve a manual, searching and reading, these steps can help you find NFTs with the specific utility you're interested in.
00;19;03;29 - 00;19;24;11
Speaker 1
Okay, so it's pretty well known that NFTs can be a picture or a GIF or something like that. But do all NFTs have to have like a visual asset of some sort? Or can they just kind of be like a document or like, what can they be?
00;19;24;13 - 00;19;52;02
Speaker 2
NFTs don't have to be limited to visual assets like pictures or get. They can represent a wide variety of digital and even physical asset. Here are some examples. One. Documents and certificate NFTs can be used to represent legal documents, academic certificate, or any type of proof of ownership or authenticity. Two. Music. An audio file. Musicians can mint their song albums or sound clip as NFT, offering exclusive rights or access to buyer.
00;19;52;02 - 00;20;18;26
Speaker 2
Three. Video clip video content from short clips to full length film can be minted as NFTs. Virtual real estate in virtual worlds or Metaverses NFTs can represent ownership of virtual land or properties, but in-game item NFT is can be used for unique in-game item characters or skins that players can own and trade. Six event Ticket NFTs can serve as tickets for events, providing access to content, conferences, or other gathering.
00;20;18;29 - 00;20;50;13
Speaker 2
Seven. Domain name blockchain based domain name like those from the Ethereum name Service, can be bought and sold as NFT. Eight. Text and literature. Authors and writers can mint their work. NFTs, including ebooks, articles, or exclusive content. Nine. Digital collectible. These can range from trading cards to any digital collectible item that people might value. Ten Utility Token NFTs can offer utility beyond digital representation, such as membership, access to exclusive content or profit sharing, right.
00;20;50;15 - 00;21;02;16
Speaker 2
The versatility of NFTs allows them to be applied in many different contexts beyond just visual art, making them a flexible tool for representing ownership and the right in the digital world.
00;21;02;19 - 00;21;25;26
Speaker 1
So say I want to do something like a scavenger hunt in real life. But when you open the the last bit of the scavenger hunt, like the treasure part, you get an NFT. How would I do that? Would it be like a QR code that brings you to an OpenSea page, or would it? How would that even work?
00;21;25;28 - 00;21;45;06
Speaker 2
Creating a real life scavenger hunt that ends with participants receiving an NFT is a great idea. Here's a step by step outline of how you could set it up. One create the NFT mint the NFT you want to give at the price. You can do this on platforms like OpenSea, Rarible, or mint, able to generate a QR code.
00;21;45;08 - 00;22;04;27
Speaker 2
Once the NFT is created, you'll need to generate a QR code that links to the NFT coin page or to a specific URL where participants can claim their price. You can use online QR code generators for this purpose. Three. Set up a claim mechanism. There are a couple of ways to handle the actual claiming of the NFT direct link.
00;22;04;29 - 00;22;27;20
Speaker 2
You could simply link to the NFTs page on a marketplace where they can view and purchase it for free. If it's set to be given away for a more controlled experience, that up a custom web page where participants can enter a code or complete a form the claim their NFT. This page could then guide them through the process of connecting their wallet and receiving the NFT, or distribute the QR code.
00;22;27;23 - 00;22;50;18
Speaker 2
Place the QR code at the final location of your scavenger hunt. Ensure it easily accessible and visible to participants when they reach the end. Five instructions by participant provide clear instructions on how participants can claim the NFT. It might include steps to set up a wallet like MetaMask, scanning the QR code and completing any necessary actions on the claim page.
00;22;50;20 - 00;23;16;16
Speaker 2
Six. Test the process before launching the scavenger hunt. Thoroughly. Test the entire process to ensure that it works globally, and that participants can successfully claim the NFT without any issue by using a QR code link to a claim page or directly to the NFT on the marketplace, you can effectively create an exciting and rewarding scavenger hunt experience that culminates in participants receiving an NFT.
00;23;16;18 - 00;23;29;07
Speaker 1
And if I wanted to just mint a very basic NFT with some simple utility behind it, like maybe a coupon or something like that, how would it be expensive?
00;23;29;09 - 00;23;48;27
Speaker 2
Minting a basic NFT with utility such as the coupon, though, going to have to be expensive. The cost primarily depends on the blockchain you choose to minted on and the current network fee. Here, the general idea of the cost involved one. Ethereum minting an NFT on Ethereum can be more expensive due to high gas fees, especially during peak time.
00;23;49;04 - 00;24;18;03
Speaker 2
Cost can range from $20 to over $100 per NFT, depending on network congestion. Two. Alternative blockchain other blockchains like Binance Smart Chain, polygon or Tether offer significantly lower minting fees. Minting an NFT on the platform can cost just a few to a few dollars. Minting platform. One platform's charge a fee for using that services to mint NFT. However, many also offer lower cost or batch minting options to reduce expenses.
00;24;18;05 - 00;24;39;16
Speaker 2
To mint a simple NFT with utility like a coupon, you could consider using one of the more cost effective blockchain. Here's how you can proceed one to the blockchain. Opt for a blockchain with low fee budget, polygon, or Tether to create a wallet, then a wallet that supports the chosen blockchain ID, MetaMask or Polygon or Temple wallet for tether.
00;24;39;18 - 00;25;02;12
Speaker 2
Three. Mint the NFT. Use the platform like OpenSea, which support polygon Rarible or you get Mount for Tesla to create and mint your NFT. Follow the platforms instructions to upload your digital asset and set the utility e.g. coupon detailed for that the utility include the details of the coupon in the NFT metadata or description, so that the utility is clear to the holder.
00;25;02;12 - 00;25;10;24
Speaker 2
By following these steps and choosing a blockchain with lower fee. You can mint a basic NFT with utility without incurring high cost.
00;25;10;26 - 00;25;19;09
Speaker 1
So find mint something on a cheaper blockchain. Does it have to live on that blockchain forever?
00;25;19;12 - 00;25;44;28
Speaker 2
Yes. Once an NFT is minted on a particular blockchain, it typically resides on that blockchain permanently. However, there are ways to bridge or migrate NFT to other blockchain, though this process can be complex and might involve additional cost and technical debt. Here are some points to consider. One. Bridging some projects and platforms offer bridging services to move NFTs between compatible blockchain.
00;25;45;04 - 00;26;12;28
Speaker 2
For example, certain bridges can transfer assets from Ethereum to Polygon or vice versa. Two. Wrap NFT another method involved wrapping the NFT, which creates a representation of the original NFT on a different blockchain. The original NFT is locked in a smart contract, and a new token is issued on the target blockchain. Three. Selling and remembering you could sell the NFT on the original blockchain and then mint the new one on the desired blockchain.
00;26;13;03 - 00;26;36;10
Speaker 2
This approach can be simpler, but might not be suitable for all use cases, especially at preserving the original token. History and metadata is important or interoperability project. Some projects aim to improve interoperability between blockchain making it easier to move assets like NFT. Keep an eye on developments in this area, as it may become easier to migrate NFTs in the future.
00;26;36;15 - 00;26;50;02
Speaker 2
While moving an NFT from one blockchain to another is possible. It's usually best to carefully choose the blockchain that best suits your needs from the outset to avoid the complexity and cost associated with migration.
00;26;50;04 - 00;26;53;14
Speaker 1
How many separate blockchains exist?
00;26;53;17 - 00;27;20;29
Speaker 2
The exact number of blockchains can be difficult to pinpoint because new ones are being created regularly, and others may become inactive or merge with other projects. However, there are several major categories of blockchain. One. Public blockchain. These are open and accessible to anyone. Like Bitcoin, Ethereum and Solana. Two. Private blockchain. These are restricted to specific users or organization often used for internal business operation.
00;27;21;00 - 00;27;49;21
Speaker 2
Three. Consortium. Blockchain. These are partially private, where a group of organizations shares control and access, such as Hyperledger and R3 Corda or Hybrid blockchain. These combine elements of both public and private blockchain, offering some degree of control while still providing transparency. Popular public blockchains used for various applications, including NFT, are Bitcoin, Ethereum by blockchain. Polygon. Pebble. Solana. Flow.
00;27;49;21 - 00;28;06;17
Speaker 2
Avalanche. Cardano. Polkadot. In addition to these, there are many other blockchains tailored for specific use cases such as supply chain management, finance, and digital identity. The total number of active blockchains is likely in the hundreds, with new project continually emerging.
00;28;06;20 - 00;28;12;03
Speaker 1
Is there a risk of having an NFT on a blockchain that dies out or goes inactive?
00;28;12;05 - 00;28;36;26
Speaker 2
Yeah, there is a risk associated with having an NFT on a blockchain that dies out or go inactive. If the underlying blockchain ceases to operate or loses a network participant, several issues could arrive. 1:00 if the blockchain is no longer maintained or its nodes go offline, you may lose access to the NFT, making it impossible to transfer, fell or even view to market value.
00;28;36;29 - 00;29;11;08
Speaker 2
The value of the NFT could drop significantly if the blockchain it resides on become obsolete or unsupported, as buyers may be reluctant to invest in an asset with uncertain longevity. Three. Interoperability challenges. Transferring the NFT to another blockchain might be complex or impossible. If the original blockchain goes inactive, particularly if no bridging solutions exist for technical support. Without ongoing development and technical support, any issues or bugs related to the NFT or smart contract might remain unresolved, further complicating usage or transfers.
00;29;11;10 - 00;29;44;12
Speaker 2
To mitigate these risks, consider the following. When choosing a blockchain for minting or purchasing NFT network popularity and activity, opt for blockchain with a large active user base, an ongoing development activity, community and developers support two blockchains with strong community engagement and active developer support to ensure ongoing maintenance and upgrade interoperability. Look for blockchains that offer robust interoperability solutions, allowing NFTs to be transferred or bridge to other blockchains if necessary.
00;29;44;13 - 00;29;51;19
Speaker 2
By considering these factors, you can reduce the risk of your NFT being affected by an inactive or obsolete blockchain.
00;29;51;21 - 00;30;18;17
Speaker 1
So what's the possibility of a situation where, say, the currency, the people who hold the nodes or mine stuff goes under or becomes totally devalued for salaries? And is there a situation possibility where it becomes like a draw on a bank situation where people can't get their NFTs out and it collapses?
00;30;18;20 - 00;30;44;18
Speaker 2
Yet there is the possibility of a blockchain network collapsing if its native currency becomes totally devalued, or if there is a significant loss of network participation. Here's how such a scenario could unfold and the potential impact on NFT. One devaluation of native currency. If the blockchain native currency loses value drastically, it could undermine the incentive for miner or validator to maintain the network.
00;30;44;20 - 00;31;11;14
Speaker 2
This might lead to reduced network security, lower transaction processing, and eventual network instability. Two. Node shutdown. If many node computers that validate and relay transactions shut down due to lack of profitability or confidence in the network, the blockchain could become less reliable or even nonfunctional. This makes accessing and transacting with NFT on that blockchain difficult or impossible. Three inaccessibility.
00;31;11;17 - 00;31;46;04
Speaker 2
If the blockchain becomes inactive or collapses, users might be unable to access their NFT. This means they can't transfer, sell, or utilize the NFT, effectively, rendering them worthless or market collapse. The value of NFTs on a failing blockchain would likely plummet, as buyers would be wary of purchasing assets on an unstable platform. Five. Bridging difficulties transferring NFTs to another blockchain could be difficult or impossible without active node to validate and process transaction trapping assets on the failed network to mitigate such risk.
00;31;46;06 - 00;32;19;25
Speaker 2
It's important to choose reliable blockchain up, a well-established and widely used blockchain with strong developer communities and robust security measures. Stay informed keep abreast of the financial, health and technical developments of the blockchain you're using. Diversify. Spread your investment across multiple blockchain to avoid putting all your at that risk on a single network. Interoperability. Consider blockchain that support or are working towards interoperability with other networks, making it easier to move assets if necessary.
00;32;19;27 - 00;32;32;18
Speaker 2
While the complete collapse of a major blockchain is unlikely due to the decentralized nature and strong community support, it's wise to be aware of these potential risks and take steps to protect your asset.
00;32;32;21 - 00;32;41;25
Speaker 1
How many nodes do blockchains like polygon have, and then how many nodes do some of the smaller blockchains have?
00;32;41;28 - 00;33;11;09
Speaker 2
The number of nodes on a blockchain can vary widely depending on the network file, popularity, and level of decentralization. Here's the general overview. Had polygon formerly matic. Polygon is a layer two solution built on Ethereum aimed at providing faster and cheaper transactions. It has a significant number of nodes, typically in the hundreds. As of recent data, polygon has over 100 validators securing the network, with numerous additional nodes participating in the network's operation.
00;33;11;15 - 00;33;43;16
Speaker 2
Ethereum comparison Ethereum, one of the largest and most decentralized blockchains, has thousands of node. Ethereum's node count can fluctuate, but it typically ranges between 5000 to 10,000 active node globally. Smaller blockchain. Smaller or newer blockchains might have significantly fewer nodes. Here are a few examples. Tether Pasok has a moderate number of nodes, usually in the range of several hundred to over 1000, depending on network activity and participation.
00;33;43;17 - 00;34;13;22
Speaker 2
Avalanche, another growing blockchain, avalanche has hundreds of nodes, often cited around 1000 or more depending on current network conditions. Binance Smart Chain BSc may be had a more centralized approach with 21 validators, which makes it node count smaller compared to highly decentralized network. Flow. Flow, designed for digital collectibles and large scale crypto gaming, has a smaller but growing number of node, typically in 100 very small or niche blockchain.
00;34;13;24 - 00;34;38;24
Speaker 2
These can have as few as WS of note, which can impact their decentralization and security. The exact number can vary greatly depending on the project, but funding and community support. Factors affecting node count one. Adoption and usage more widely adopted blockchain tend to have more node two network incentive. Strong incentives for running a node, e.g. staking reward can increase the node count.
00;34;38;28 - 00;34;59;02
Speaker 2
Three. Community support. A large and active community can help maintain and increase the number of nodes. The number of nodes is a critical factor for a blockchain. Decentralization and security. More nodes generally mean a higher level of security and resilient against attack, as well as better network performance and reliability.
00;34;59;04 - 00;35;03;18
Speaker 1
So what does a node consist of in the real physical world?
00;35;03;20 - 00;35;31;17
Speaker 2
In the real world, a blockchain node is essentially a computer or server that participates in the blockchain network. Here's what a node typically consists of. One hardware computer server node can run on anything from personal computers to dedicated servers. Depending on the blockchain's requirement. VPU sufficient processing power to handle the computational path required for validating transaction and maintaining the blockchain Ram.
00;35;31;19 - 00;35;57;19
Speaker 2
Adequate memory to manage the blockchain database and perform operations efficiently. Storage sufficient disk space to store the entire blockchain ledger, which can be several gigabytes or even terabytes in size, or some blockchain network connection. A stable and fast internet connection to communicate with other nodes and broadcast transactions. Two software blockchain client the software that connects to the blockchain network.
00;35;57;26 - 00;36;22;27
Speaker 2
Examples include Geth or parity for Ethereum and nodes on other blockchains. Will you bill respective client software operating system node typically run on limited, but they can also run on Windows or Mac OS. Three. Configuration synchronization. The node must be synchronized with the blockchain, meaning it has downloaded the entire blockchain history and is up to date with the latest transaction.
00;36;22;29 - 00;36;51;24
Speaker 2
Security measure firewall, regular update, and other security protocols to protect against attack or unauthorized access. Types of node one node Tor the entire blockchain history. Validate and relay transactions. Contribute to network security and decentralization. Two. Like node Tor only a portion of the blockchain, typically just the header, rely on full node for transaction verification. Use fewer resources, but offer less functionality.
00;36;51;26 - 00;37;26;12
Speaker 2
Three validator nodes participate in consensus mechanism e.g. proof of stake, validate and proposal of new block often require taking a certain amount of cryptocurrency as collateral for mining nodes. In proof of work blockchains like Bitcoin. These nodes solve cryptographic puzzle to validate transaction and create new block requires significant computational power and energy. Running a node. Running a node requires setting up the hardware and software, and figuring the node to connect to the network, and ensuring it remains online and synchronized with the blockchain.
00;37;26;14 - 00;37;42;27
Speaker 2
This can be done by individual businesses or dedicated data centers. In summary, a node is a crucial part of the blockchain ecosystem, providing the infrastructure needed for transaction validation. Block creation, and maintaining the decentralized nature of the network.
00;37;42;29 - 00;37;47;00
Speaker 1
Do you say Binance has 21 nodes?
00;37;47;02 - 00;38;21;00
Speaker 2
No. I mentioned that Binance Smart Chain BFD has a more centralized approach with 21 validators, which make this node count smaller compared to highly decentralized network. These validators are responsible for producing block and maintaining the network and by a part chain. The 21 validators are elected by BNB holder and rotate based on their voting power. This setup is designed to optimize performance and scalability, but it does mean that BFB is more centralized compared to networks like Ethereum, which have thousands of node.
00;38;21;02 - 00;38;25;00
Speaker 1
How much money goes through the that specific blockchain?
00;38;25;02 - 00;39;00;18
Speaker 2
The amount of money flowing into a specific blockchain like Binance Smart Chain BSc can be substantial, encompassing various aspects such as total value locked TVL in decentralized finance, B by protocol transaction volume, market capitalization of token and investments in project block on the network. Here are a few key financial indicators for BFD one. Total value locked deathmatch represents the total capital locked in DeFi protocols on BSA as of recent data, but TDL is often in the billions of dollars, reflecting the extensive use of a DeFi ecosystem.
00;39;00;19 - 00;39;26;28
Speaker 2
Two market capitalization the market cap of BNB, Binance Coin, the native cryptocurrency of BSD, often exceed tens of billions of dollars. BNB is used for transaction fee and staking within the network. Three transaction volume BSP handle the high transaction volume, often processing millions of transactions daily. The high activity level translates to significant financial throughput on the network for investment in projects.
00;39;27;01 - 00;39;56;04
Speaker 2
Many project and decentralized applications. The app built on BSP, receives substantial funding from venture capital grant and other sources. These investments support the development and growth of the ecosystem, but the most current and precise financial data. You can refer to blockchain analytics platform like DeFi, Pol, DApp, radar or specific blockchain Explorer or BSc. These platforms provide up to date information on TVL transaction volume and other financial metric.
00;39;56;06 - 00;40;07;24
Speaker 1
So if a group of people wanted to compromise or hold BSc hostage, all they would have to do is gain control of those 21 sites.
00;40;07;26 - 00;40;35;13
Speaker 2
In theory, if a group of people or entity wanted to compromise Binance Smart Chain SC by gaining control of the 21 validators, they could potentially manipulate or disrupt the network. This kind of attack is known as a 51% attack or validator attack. Here's how it could work and the challenges involved. One. Control a validator. To compromise the network, the attacker would need to gain control of the majority of the 21 validators.
00;40;35;16 - 00;41;12;11
Speaker 2
This would involve either operator, those validators directly, or compromising the existing validators through hacking or collusion. Two. Manipulation of the network with control over the majority of validators. The attackers could potentially manipulate transaction ordering, center transaction, create ORC or double spend tokens. This could undermine the integrity and security of the blockchain. Three challenge IT banking requirement validators on BSc are required to stake a significant amount of BNB, gaining control of a majority of validators would require a substantial financial investment coordination.
00;41;12;14 - 00;41;37;16
Speaker 2
Coordinating such an attack would require the collaboration of multiple NCB, which can be difficult to achieve without detection, detect them and respond. The BSD community and Binance would likely detect unusual activity and take steps to mitigate the attack, such as implementing emergency measures or forking the blockchain to restore normal operation while gaining control of BSc. 21 validator is theoretically possible.
00;41;37;18 - 00;41;50;26
Speaker 2
It is a complex and costly endeavor with significant risk. The decentralized nature of blockchain is designed to make such attack difficult and economically unfeasible, especially for larger and more widely used network.
00;41;50;28 - 00;41;53;19
Speaker 1
I mean, billions of dollars is a lot of money.
00;41;53;21 - 00;42;17;06
Speaker 2
Yes, billions of dollars is indeed a significant amount of money, and it highlights the importance of security and decentralization in blockchain network. While the amount of capital involved in network like Bi-Mart chain BFD is substantial, the security measures, the economic incentives, the play are designed to protect the integrity of the network. Here are some additional points to consider.
00;42;17;09 - 00;42;46;08
Speaker 2
One. Economic incentive validators are financially incentivized to act honestly because they earn rewards in the form of transaction fees and block reward. Acting maliciously could lead to the loss of their staked BNB and future earnings. Two. Community vigilant. The blockchain community, including developer, birth users and other stakeholders, actively monitors network activity. The basic behavior can be quickly identified and addressed, making it harder for attackers to succeed.
00;42;46;13 - 00;43;17;16
Speaker 2
Three. Technical measure blockchains implement various technical measures to enhance security, such as consensus algorithm, cryptographic technique, and network protocol. These measures make it more difficult for attackers to gain control or manipulate the network or decentralization. Although BSc has a relatively small number of validators compared to some other blockchain, it still benefits from a level of decentralization that help distribute, control and reduce the risk of a single point of failure.
00;43;17;18 - 00;43;48;06
Speaker 2
Five. Reputation and trust. Major blockchain networks and their participants have a vested interest in maintaining the network's reputation. Interest will attack the merely damage the trust, leading to a loss of value and users, which is a strong deterrent against malicious action. While the risks exist, the combination of economic incentives, community vigilance, technical measures, and the importance of maintaining trust and reputation all work together to protect blockchain network from attack.
00;43;48;09 - 00;44;01;26
Speaker 1
Okay, I've learned a lot today. Before we go, though, I want to ask you one interesting thing that you really don't enjoy or like about NFTs.
00;44;01;28 - 00;44;31;05
Speaker 2
One interesting thing I really enjoy about NFT is their potential to empower artists and creators. NFTs provide a new way for artists to monetize their work directly without needing intermediaries like galleries or auction houses. They can also include smart contracts that ensure artists receive royalties each time their NFT is resold. This can create a more sustainable and fair model for artists, allowing them to benefit from the ongoing success and value appreciation of their creation.
00;44;31;13 - 00;44;38;10
Speaker 2
It's a fascinating blend of technology and creativity that opens up new possibilities for digital ownership and art.
00;44;38;12 - 00;44;53;20
Speaker 1
Okay, that was good, but let's go with something. Let, I want to ask you about something that may be a lesser known interesting thing about NFTs.
00;44;53;22 - 00;45;20;22
Speaker 2
A lesser known but fascinating aspect of NFTs is their potential use in decentralized identity management. NFTs can be used to represent and verify unique aspects of an individual digital identity, such as certification, achievements, or membership in specific communities. For example, an NFT could serve as proof of completion for an online court or the digital membership card for exclusive access to certain services or event.
00;45;20;25 - 00;45;29;18
Speaker 2
This application of NFT can enhance privacy and security while giving individuals more control over their personal data and credential.
00;45;29;21 - 00;45;35;06
Speaker 1
Okay, cool. That's it for today. Probably come back to more stuff about NFT later.
00;45;35;08 - 00;45;43;19
Speaker 2
Sounds great. I'm glad I could help. Feel free to reach out anytime you have more question or want to discuss NFTs further. Have a wonderful day!