NFT are the three letters that have managed to squeeze their way into the crypto limelights. There always seems to be a new buzzword in the world of crypto, and this time, it is NFTs in Crypto that have taken the world by surprise.
Also, NFTs prove ownership of a digital item the same way people own crypto coins. Crypto coins are identical and are of the same value. But NFTs in Crypto are unique, and their values differ from each other even when they are the same thing.
Again, the outburst of NFTs has made crypto lovers desire to have their non-fungible token partake and earn some of the millions made on this super new platform. Types of NFTs arts include; images, gifs, videos, sports cards, virtual cars, airplane tickets, etc.
What is cryptography? And how are they used alongside NFTs? What is the difference between these two terms?
Efficient answers to these questions are what this article is going to provide as you read further.
What is Cryptography?
Cryptography is a method for protecting information and communications through codes. And the codes ensure that only intended receivers can read and process the messages.
Additionally, crypt means hidden while graph means writing. And those who practice it are cryptographers. Again, cryptography is the science of securing data using mathematical algorithms or rule-based calculations to send messages in ways that are hard to read.
Key Principles of Cryptography
- Cryptography uses encryption to ensure confidentiality in communication between parties or digital devices.
- Helps store data in an encrypted form. Again to access data, you must provide a set of keys that match the one stored In the memory.
- Also, they make sure data does not alter during transmission. And they prevent intentional modification of information during transmission.
- The verification feature of cryptography makes sure a user has enough authority to access a particular data.
- Again, issues digital signature to contents it is managing. And this signature is hard to forge and is for transactions between parties in different locations.
What are NFTs in Crypto?
NFTs in Crypto is a type of digital art that is making waves in the Crypto world. Non-fungible tokens (NFTs) are the new way of making money in the world of digital arts and crypto trade. They are unique, not interchangeable, and live in the blockchain.
Furthermore, a crypto fungible asset holds back the same value when substituted. And examples include gold, bitcoin, casino chips, dollar, ethereum, etc. But non-fungible assets have attributes that make them different from similar assets in the same class, which is why they cannot be substituted.
Again, NFTs are almost the same as bitcoin and other cryptocurrencies, the difference is they omit equality and are not fungible.
Features that make NFTs special and flexible for several purposes are;
Relationship Between NFTs in Crypto and Cryptography
Cryptography is a function the blockchain uses to chain blocks into a growing list of records with each block locked by a cryptographic hash or sting of characters.
NFTs are secure and cannot be exploited by an unauthorized party with the help of cryptography and that is the relationship evolving around these two terms.
Also, when you purchase an NFT, you are given the right to transfer your token to your digital wallet. You remain the original owner of the digital file with your cryptographic key, the proof of ownership.
Notwithstanding, we can conclude that cryptography makes NFTs valuable by encrypting, securing, and not allowing multiple ownership of a particular type of digital file. And their relationship is only when an NFTs finds its way into a blockchain.
Difference Between NFTs in Crypto and Cryptography
NFTs are digital arts created by anybody with a little artistic skill. And they can be an image, video, gifs, trading cards, badge, etc.
On the contrary, cryptography protects tokens living in a blockchain. With keys being given to owners of files, and that serves as the permission right over their assets living in a blockchain.
So while NFTs entails the asset creation process, cryptography secures the assets once it comes into the blockchain.
NFTs are part of the Ethereum blockchain. And ethereum is a cryptocurrency but its blockchain also supports these NFTs.
On the other hand, cryptography maintains security on the blockchain and secures NFTs living in the blockchain.