Meme Coin Guide
Blockchain
What Is It
Blockchain is a decentralized database that is shared among computer network nodes, storing information in electronic form. The blockchain is well known for its critical role in keeping a secure and decentralized record of transactions in cryptocurrency systems, such as Bitcoin and NFTs. The blockchain's uniqueness is that it ensures the integrity and security of a data record while also generating trust without the requirement for a trusted third party. The blockchain serves as the basis for immutable ledgers, or records of transactions that cannot be changed, removed, or destroyed.
Smart Contracts
How It Works
The structure of data in a blockchain differs from that of a traditional database. A blockchain organizes data into groupings called blocks, each of which contains a collection of data. Blocks have specific storage capabilities, and when they are filled, they are closed and linked to the preceding block, producing a data chain known as the blockchain. All additional information added after that newly added block is compiled into a new block, which is then added to the chain after it is filled.
What Is It
The term ‘smart contract’ was first introduced by computer scientist and legal theorist, Nick Szabo, in 1994. A smart contract is computer code that can enforce and execute the terms of a buyer-seller agreement. The contract’s conditions are written in computer code, and when those conditions are met, the actions specified by the code are automatically triggered. Blockchain provides a secure mechanism for smart contracts to execute the transfer of valuable digital assets, such as NFTs, with complex contractual clauses.
Cryptocurrency
Its Benefits
Smart contracts eliminate the requirement for a central authority, legal system, or external enforcement mechanism to carry out trustworthy transactions and agreements between distant, anonymous participants. Transactions are trackable and irreversible, and the programming regulates their execution. While blockchain technology is most known for being the foundation for Bitcoin, it has progressed much beyond that.
Bitcoin and Ethereum
What is it
Cryptocurrency is a digital payment mechanism that does not rely on banks for transaction verification. It's a peer-to-peer system that allows anyone to make and receive payments from anywhere. Cryptocurrency payments exist solely as digital entries to an online database identifying specific transactions, rather than as tangible money carried around and exchanged in the real world.
How It Works
The name cryptocurrency comes from the fact that it uses encryption to verify transactions and ensure security. Storing and sending cryptocurrency data between wallets and to public ledgers requires complex coding. The transactions you make with cryptocurrencies are recorded in a public ledger and the cryptocurrency is stored in a digital wallet.
Bitcoin
Introduced in January 2009 by Satoshi Nakamoto, Bitcoin was the very first successful decentralized cryptocurrency and payment network around the globe. It serves as digital money and a means of payment outside the control of any single person, organization, or institution, removing the requirement for third parties to be involved in financial transactions. It uses cryptography in encoding and decoding to protect and validate transactions in a public ledger.
Ethereum
The Ethereum blockchain, created by Vitalik Buterin in 2013, provides developers with the tools to create NFTs and other blockchain applications through smart contracts. Ethereum also enables payments, using its internal ETH cryptocurrency. This is the second most popular cryptocurrency after Bitcoin.
What Is It?
Web3 has become a catch-all term for the vision of a new, better internet. At its core, Web3 uses blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership.
For example, say you're playing a game on the current Web2 internet. If you purchase an in-game item, it is tied directly to your account. If the game creators delete your account, you will lose these items. Or, if you stop playing the game, you lose the value you invested into your in-game items.
Web3
Web3 allows for direct ownership through NFTs. No one, not even the game's creators, has the power to take away your ownership. And, if you stop playing, you can sell or trade your in-game items on open markets and recoup their value.
The Revolution of the Internet
Web 1.0 is considered the earliest version of the internet, which focused on delivering content to users but prevents them from sharing their own.
Web 2.0 is a social media age that allows users to create and share their own content. While this allowed us to communicate with one another and create user-generated material, it also had certain limitations.
Web 3.0 is built on the concepts that allow individuals to trade data and information in a fair and secure manner. It allows people to keep creating content while still having control and ownership over their data. It's all about giving individuals a personalized experience while maintaining their privacy and security.
What is an NFT?
Non-fungible tokens (NFTs) are blockchain-based digital assets having unique identifying codes that separate them from one another. They cannot be sold or exchanged for another one of the same. This is in contrast to fungible tokens, such as Bitcoin, which are all similar and hence can be used as a medium of exchange. In terms of value, one dollar is always worth another dollar, and one Bitcoin is always worth another Bitcoin.
NFTs change the crypto paradigm through unique digital signatures making each token one-of-a-kind and irreplaceable. That means it is impossible to compare two of the same non-fungible tokens. NFTs represent a wide range of digital assets, which includes art, music, gaming and metaverse.
NFT Use Cases
NFTs are a new technology that offers a wide range of applications. Digital art and collectibles have been made possible by the invention of NFTs, but it doesn't end there. NFTs can be used to verify the authenticity of various unique and items, from real estate to gaming.
While the NFT ecosystem is still in its early stages, there many use cases which are already providing significant value to creators and consumers.
Art
The majority of the value of crypto art comes from digitally validating its legitimacy and ownership. The non-fungible characteristic of NFTs makes them ideal for creating one-of-a-kind art pieces with unique properties and art generated entirely by code. Furthermore. It’s possible to include conditions in the code ensuring that artists receive a cut each time the NFT is sold, providing digital artists with new, innovative ideas to keep monetizing their work.
Collectibles
There's a huge market for digital collectibles. The NBA collectible trading cards NBA Top Shot have taken this use case mainstream. There is a lot of crossover with crypto art, and an NFT can occasionally be both a collectible and an art work. NFTs can also be used to buy NFT avatars, which can form your identity within the digital space and metaverse. Moreover, NFTs can further be used as an indicator or sign that someone is part of a community.
Music
You can connect audio to an NFT in the same way you can an image or video to create a collectible piece of music. This is a more efficient and advantageous way for individual artists to monetize their work. This means that the artists can truly own their work, including trademarks, copyright, etc., and this information can be stored in the metadata of a token. Music NFTs would also allow artists to strengthen the connection with their fans. By utilizing NFTs musc artists can offer unique experiences, such as one-on-one live broadcasts or exclusive events.
Gaming
NFTs can be used to issue non-duplicable in-game objects allowing game enthusiasts to have a new form of ownership. “Play-to-earn” games often require players to buy items with cryptocurrency in order to play the game and collect unique, in-game items. Those items may then increase in value and be sold to other players or even be used in different games. Many projects, have integrated blockchain technology into their games, such as Axie Infinity which features tradable pets.
Metaverse Land
A metaverse is a network of 3D virtual worlds focusing on social connection and is the future of the internet. It is a combination of virtual reality and mixed reality that can be accessed via a computer or headset and enables users real-time interactions and experiences amongst persons who are physically apart. Developers are using non-fungible tokens to build their virtual land ecosystems, which you can own.
Real Estate
In the real estate industry, physical land or property can be represented on a blockchain as an NFT. This means that the digital token standing for a piece of land can have all sorts of attributes such as location, price, and measurements. NFTs benefit the real estate industry by increasing asset transfer efficiency and providing holders with on-chain verifiable proof of ownership.
NFT Blockchains
Ethereum
Ethereum is currently the most extensively utilized blockchain for NFT applications and is ahead of the trend. It has a big development community, which is a significant advantage because any issues can be quickly resolved and new and advanced features are added on a regular basis. Furthermore, Ethereum comes with a wealth of technical documentation that is invaluable to developers working on dApps or smart contracts.
Solana
Solana is widely regarded as one of the crypto space's quickest programmable blockchains. Solana presently has over 400 projects spanning DeFi, NFTs, and Web3. The Solana blockchain is built on a unique blend of proof-of-history and proof-of-stake consensus algorithms. Because nodes aren't forced to expend processing power before validating alternative timestamps, the theory underpinning proof-of-history allows validators to manage their own clock and speed up the transaction verification process.
Polygon
Polygon is a cryptocurrency as well as a technology platform that connects and scales blockchain networks. The Polygon platform connects Ethereum-based projects and runs on the Ethereum blockchain. The Polygon platform can improve a blockchain project's flexibility, scalability, and sovereignty while maintaining the Ethereum blockchain's security, compatibility, and structural benefits.
Cardano
Cardano is a sophisticated, distributed proof-of-stake powered blockchain created by Ethereum co-founder Charles Hoskinson. Its main goals are to enable transactions in its native coin (ADA) and to provide a simple environment for developers to create highly scalable and reliable Cardano-powered applications. The Cardano blockchain includes two layers: the Cardano Settlement Layer (CSL), which is used to transfer ADA between accounts and record transactions, and the Cardano Computation Layer (CCL), which is used by developers to move funds using smart contract logic.
Binance Smart Chain
The Binance Smart Chain (BSC) is a blockchain that works in conjunction with the Binance Chain. A system of 21 validators is used by Binance Smart Chain. It uses the proof-of-staked-authority consensus process, which allows for faster block times and reduced costs. As BSC is compatible with the Ethereum Virtual Machine, developers may easily move their projects from the Ethereum blockchain to the BSC blockchain, resulting in support for a wide range of BSC tools and dApps. From the standpoint of the user, this implies that programs like MetaMask may be easily adapted to work with BSC.
Polkadot
The Polkadot protocol is intended to allow unconnected blockchains to safely communicate with one another, allowing value or data to flow freely between, for example, the Ethereum and Bitcoin blockchains. It's also built to be fast and scalable, thanks to the usage of many parallel blockchains that offload much of the processing load from the main blockchain. It uses the native Polkadot token (DOT) for staking, which is how the Polkadot network verifies transactions and generates new DOT.
NFT Marketplaces
An NFT marketplace is where you can participate in the purchase and sale of NFTs. There are dozens of NFT marketplaces, and many of them have a specific focus or niche.
Here are some of the top NFT marketplaces right now.
OpenSea
The first and largest NFT marketplace with a very user friendly interface best for beginners.
Nifty Gateway
An eco friendly marketplace focusing on NFT art by big brands and creators, also allowing direct credit card purchases.
Foundation
A premium NFT Marketplace that primarily focuses on offering exclusive digital art drops.
Rarible
A community-owned marketplace that has its own native currency.
SuperRare
A great marketplace for those looking for high-end NFT artwork.
Binance
The largest crypto exchange, offering low-fee NFT trading.
NFT Wallets
After you decide to buy an NFT, the next step is to find a suitable wallet to store it in. A hot wallet is linked to the internet and thus subject to cyber attacks, which could result in your NFT being stolen, but it is faster and easier to trade your NFT. Alternatively, cold wallets, such as Ledger and Trezor, are not connected to the internet, so while it's more secure it's also less handy.
This list will help you decide which wallet is best for you, based on your specific needs:
Metamask
Metamask is one of the most popular NFT wallets. It started off as a browser extension, enabling direct connections to Ethereum-based services for minting and trading. It offers simple setup as well as transaction synchronization between mobile and browser extensions.
Coinbase Wallet
The Coinbase Wallet is suited for NFT beginners. Instead of using public wallet addresses, Coinbase allows customers to send and receive NFTs via usernames. The usernames ensure that NFT transactions are flexible, similar to PayPal transactions.
Alpha Wallet
This is an open-source Ethereum-based blockchain wallet that allows you to mint and collect NFTs on your mobile. In addition, the AlphaWallet app also ensures compatibility with all the in-game assets based on Ethereum.
Enjin
This is a unique blockchain-based wallet that allows you to collect NFTs and gather in-game assets. The Enjin NFT wallet also includes a marketplace where users may trade their digital assets using the native token ENJ.
Trust Wallet
Trust Wallet supports well-known public chains such as Ethereum and Binance Smart Chain. If you're interested in NFTs on the Binance Smart Chain, Trust Wallet may be the best option for you since it's already set up for BEP tokens.
Handy Tools
Analytics
https://nftinit.com/trending-nfts
Rarity Tools
Gas Tools
https://www.blocknative.com/gas-estimator#
Upcoming drops
https://rarity.tools/upcoming/
https://www.nftcatcher.io/drops
You can also add images simply by copying and pasting them directly into the editor — and GitBook will automatically add it to your file manager.
Last updated
