How is ownership of digital assets transferred?
Look around... I mean browse the internet, there are so many digital products surrounding us! Maybe while reading this post, you are listening to some music, and before that, you watched some amusing clips of playing kitties sent by your friend? Well... We all enjoy and use digital products to some extend. However, not many people raised a question about the ownership of these digital assets. Unlike physical assets, digital products are much more complex when it comes to the ownership transfer from one person to another.
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If you are familiar with the gaming industry, there is a market for skins. Some of these skins are one of a kind, so imagine if you own unique skin and want to sell it, the process of doing it is less to say problematic.
Digital Assets on Blockchain
Luckily, we have a solution for transferring ownership of digital assets. The answer is Blockchain. You may ask me, wait, what? Blockchain? What is it? No worries, I'll explain it to you in a simplistic way.
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Firstly, let's break the "Blockchain" word into two separate words.
"Block" - a record of transactions.
"Chain" - a list of linked records of transactions.
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Blockchain is a digital record of transactions. Before the transaction is added to the list, it must be verified/validated by computers on the internet. The validation process ensures that these transactions are valid and no invalid blocks are added to the chain. Blockchain technology is used to protect intellectual properties and verify the digital signature of the files on the internet.
Blockchain role in NFT world
Speaking of Non-Fungible Tokens, blockchain operates to link the content distribution to the origin, making it easier to track the file to the creator or previous owner. Moreover, tokens (smart contracts) are stored on the blockchain as well.
