The Tech Behind Bitcoin, NFTs, and More

Jeremy Fung, Staff Writer

It is no doubt that Bitcoin, non-fungible tokens (NFTs), and other cryptocurrencies and digital assets have been on the rise over the past few years. Debates on crypto are very common on the internet; some swear it is the best investment opportunity, while others see it as nothing more than a scam. It raises the question: how do these cryptocurrencies even work? How does it stay safe? The answer to both of these questions lie in one word: blockchain.

 

To the average person uninvolved in anything related to crypto, it can be confusing to understand, so let’s break it down block by block (pun intended). Blockchain technology can be simply understood as a network of thousands of different computers all verifying each other’s information. As a piece of information is entered, say a Bitcoin transaction, that data is represented by a block in a chronologically ordered chain. Unlike traditional methods of storing data, information in a blockchain is stored in many different places, creating protection from hackers or any misinformation. For example, if a hacker altered a Bitcoin transaction on one computer, the data would stand out on all the other computers and it would be deemed as invalid. 

 

Although the world of cryptocurrencies and NFTs is still quite obscure, it is no doubt that blockchain has allowed for a safer form of digital assets. In the future, we are likely to see blockchain become more common in different areas of digital data storage, and it will be interesting to see how this technology will be implemented. 

Hayes, Adam. “Blockchain Facts: What Is It, How It Works, and How It Can Be Used.” Investopedia, Investopedia, 19 Dec. 2022, https://www.investopedia.com/terms/b/blockchain.asp.