You’ve undoubtedly heard about the price of Bitcoin, that mysterious electronic money, and its roller-coaster ride over the past decade.
From zero to tens of thousands of dollars, up and down, it’s tempting to fantasize what it would be like holding a few Bitcoin in your wallet or purse, and even more tempting to want to get it on the ride.
In basic terms, this means that instead of having one central server that stores all the data, the data is spread out across many different computers.
Centralized finance is the current financial system. It’s what we all use now and most of us are already familiar with. There are banks, credit unions, insurance companies, and other financial services that act as middlemen between you and your money.
Cryptocurrency is a digital or virtual currency that utilizes blockchain technology. You can think of cryptocurrencies like the digital form of cash and the blockchain like a giant ledger where you publicly write the transactions down for everyone to see.
Non-fungible tokens (NFTs) are then the opposite of this. One NFT is unique and cannot be exchanged for equal value for another. What makes an NFT valuable is that it can be attached to a digital or physical asset.