Blockchain technology has become wildly popular. Investors, companies, and media are all speculating on where the technology will take us in the future.
However, there is still a lot of mystery and confusion surrounding NFTs and Cryptocurrency. Many people believe that these are the same thing, or that they are completely unrelated.
While Crypto has had its heyday in the mainstream, thanks to Bitcoin and Dogecoin, NFTs are still a bit elusive. We wanted to shed some light on NFTs and Crypto, so we interviewed Clancey Braxton Yohman and asked him to explain to us how they are connected.
Clancey Braxton Yohman is an entrepreneur and forerunner in the Crypto, NFT, and blockchain industry, so he was the perfect person for us to ask. Now we’ll share what he had to say.
I hear Crypto and NFTs brought up a lot in the same sentences. Are NFTs Cryptocurrency?
No, NFTs are not Cryptocurrency. They are related and similar in a particular way, however.
They are related because both NFTs, and Crypto are minted on a blockchain. However, they are different because Cryptocurrency is a form of decentralized currency.
People use Crypto to buy things. While NFTs are actual files or documents that are minted onto the chain. So Crypto is money, while NFTs are products.
So exactly how are Crypto and NFTs related?
As I mentioned before, they are related because they are minted on a blockchain. By being minted and tokenized, NFTs and Cryptocurrencies are unique.
They are also decentralized, which means no single person controls them. They are also related because cryptocurrency is used to purchase NFTs.
NFTs are minted on the Ethereum network and are traded on marketplaces with the Crypto known as Ethereum. They are also similar in the fact that people are investing in them in a similar way.
They expect both technologies to boom, so they are purchasing and holding onto their purchase, hoping for the prices to increase.
So do you need crypto to buy NFTs? Is there any other way?
You need Crypto to buy NFTs. There’s no other way to purchase them currently.
Ethereum is the Cryptocurrency that you use to purchase NFTs. There are a lot of ways to go about actually making the purchase, but in every case, you will need a Crypto wallet to store your NFTs and your Cryptocurrency.
You mentioned a blockchain, what all can be stored on a blockchain?
That’s the beautiful thing about blockchain and NFT technology. Just about anything that you can imagine can be minted and stored on a blockchain.
We call that being tokenized. When you tokenize something on the Ethereum blockchain, it is an NFT. So you can store anything from images to music to sensitive documents like medical records.
There’s really no limit to NFT technology, which is why it is so exciting.
What are the benefits of storing things on a blockchain?
The first major benefit is that the things stored on a blockchain are completely unique. With traditional images and files, anyone could simply copy and paste the file and have an exact copy of it.
However, NFTs and Cryptocurrency are completely unique. Crypto cannot be duplicated, which is where its value comes from.
The same can be said about NFTs, they cannot be duplicated. Another major advantage is that blockchain tech is extremely secure and pretty much unhackable with modern technology.