NFT Ecosystem Basics
Every industry has its own terminology, priorities, and approaches. This section provides an overview of some of these for the emerging NFT ecosystem.
This is a ‘Once Upon a Time’ story because it is already intertwined with myth and legend, although it is not even fifteen years old.
In 2008 a White Paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ was published by Satoshi Nakamoto. This may, or may not, be a natural person. It may also be a pseudonym for one person or many people. One thing is sure, whoever wrote it was not happy with the current online banking system.
Others had worked on critical concepts that became part of the whole. However, this paper birthed a cohesive technological solution.
‘Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. The system suffers from the… inherent weaknesses of the trust-based model.’
‘a peer-to-peer network that timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.’