Learning about NFTs, why it is called NFTs Crypto, and why it needs a Blockchain even when it is called a non-fungible token could be confusing for NFTs newbies.
Many people see NFTs as cryptocurrencies because of the crypto format and the need for blockchain to process transactions made with NFTs.
On the other hand, if NFTs are part of cryptography, then what is cryptography? And what is their relationship with a Blockchain?
In this article are details about Cryptography and Blockchain and how they are used with NFTs.
What Are NFTs Crypto?
NFTs Crypto is a powerful kind of token represented on a digital ledger called a blockchain. However, NFTs are part of the ethereum Blockchain but not a fungible asset like bitcoin, etc.
Also, they can represent images, videos, audio, sporting cards, and Gifs.
Their main properties are:
What is Cryptography?
Cryptography is a way of passing information that will remain a secret till it gets to the supposed recipient. This is the science of securing data by using mathematics to encrypt and decrypt data.
Also, Cryptography, or cipher, works in combination with a key – a word, number, or phrase to encrypt the plaintext.
And encrypted data depends on two things: the secrecy of the keys and the strength of the cryptographic algorithm.
Keys are values or ciphertext are produce from a cryptographic algorithm. They are a combination of big numbers representing a 2048-bit. The bigger the key, the more secure the data.
Imagine you sent a message to Mr. B, and along the line, the message leaks to Mr. C. Hence, the cryptographic nature of the data is the reason Mr. C fails to understand the message content.
5 Modern Objectives of Cryptography
- Confidentiality: The information sent should remain a secret between the parties involved.
- Authentication: The parties involved are to activate the information transfer operation from the origin to the destination.
- Integrity: Cryptographic information must remain sender and receiver data without any form of alteration.
- Key Exchange: This is the process of sharing keys and passwords between parties partaking in the action.
- Non-Repudiation: Cryptography uses these features to make sure the authenticity of the signature on a document or asset remains relevant.
What is a Blockchain?
Blockchain is a record-keeping technology. It is a type of database that stores information in blocks and is chained together. Also, they allow users to secure and control their monetary values.
Again, they make sure data remains secure, and its transparency helps avoid cheating the system.
Blockchain is a vast, universal distributor ledger or database running on millions of computers that are open to everyone and the heart of the internet.
Three technologies work behind blockchain technology. They include; private key cryptography, peer 2 peer network, and blockchain’s protocol program.
Features of BlockChain
Benefits of Blockchain
- Cost reduction
- Accurate tracking
- Increased transparency
- Permanent ledger
Differences Between Cryptography and Blockchain
Blockchain is the record system for transactions, whereas cryptography is a transaction handled by the blockchain. Also, cryptography can be in the form of a token traded for blockchain to house and manage.
This means cryptography is an application running on top of a blockchain, which serves as the underlying structure.
Again, blockchain is a logical entity design to be a read-only database. While cryptography is a type of digital art kept in a blockchain.
Relationship Between Cryptography and Blockchain
Blockchain is a fundamental feature of cryptography. All forms of crypto are dependent on them and that enables the existence of crypto.
Also, Cryptography works on the principle of blockchain technology, and due to its secure nature, NFTs Crypto generalizes on all platforms.
NFTs Relationship With Cryptography and Blockchain
NFTs Crypto combines the best traits of decentralized blockchain technology and Cryptography to create provably unique, scarce, and authentic tokens. Let’s look at some other related factors.
- NFTs Crypto tokens are cryptographic tokens living in a blockchain. Blockchain use to create NFTs, which use cryptography to protect the privacy of NFTs.
- Again, Blockchain supports fungible assets like Bitcoin. Recent optimization allows users to create a special kind of crypto asset, one that is non-fungible and unique.
- Since NFTs function like cryptographic tokens. There is a need to have a blockchain manage all transactions.
- NFTs Crypto living in a Blockchain make tracking of assets easier and faster. Also, this allows NFTs authentication.
Non Fungible tokens are not the same as Blockchain or Cryptography. NFTs Crypto is a type of cryptographic asset found on the blockchain. Though there are differences between these platforms as well, they need each other to function.