Decentralized autonomous organizations¶
How does emerging technologies work? Do they hide their internal flow of work, do they make it non accessible? How hard is it to understand? DAOs have social, ethical and environmental consequences. We focused mostly into Bitcoin and NFTs.
Bitcoins are a form of digital currency that operates on a decentralized network called the blockchain. Bitcoin was the first and remains the most well-known cryptocurrency. It was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
Bitcoin operates without a central authority or government, relying on a peer-to-peer network of computers to validate transactions and maintain the integrity of the system. This decentralized nature distinguishes it from traditional fiat currencies, which are issued and regulated by central banks.
Bitcoin has gained popularity for various reasons. Some see it as a potential store of value similar to gold, while others view it as a speculative investment opportunity. Bitcoin has also been embraced by certain merchants as a form of payment. However, it’s important to note that the price of Bitcoin can be highly volatile, and investing in cryptocurrencies carries risks.
But what is a blockchain?
A blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers or nodes. It is designed to be secure, transparent, and resistant to modification, making it a reliable and tamper-proof system for recording and verifying data.
In a blockchain, transactions are grouped into blocks, which are then linked together in a chronological order, forming a chain. Each block contains a unique identifier called a cryptographic hash, which is generated based on the data within the block and the hash of the previous block. This linking of blocks ensures the integrity and immutability of the data stored in the blockchain.
The decentralized nature of a blockchain means that there is no central authority controlling or governing the system. Instead, it operates on a peer-to-peer network, where participating nodes validate and maintain the blockchain collectively. This consensus mechanism, often achieved through algorithms like Proof of Work or Proof of Stake, ensures that the majority of nodes agree on the validity of transactions and blocks before they are added to the blockchain.
After having a proper background on the topic, we created a Tezos account to generate our own wallet in order to create our first NFT! Super exciting.
NFTs, or Non-Fungible Tokens, are a type of digital asset that represent ownership or proof of authenticity of a unique item or piece of content. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are unique and cannot be directly exchanged for one another.
NFTs utilize blockchain technology, typically on platforms like Ethereum, to create a verifiable and immutable record of ownership. Each NFT is assigned a unique digital signature or token, which distinguishes it from other tokens on the blockchain. This digital signature serves as proof of ownership and authenticity, making it possible to buy, sell, and trade these digital assets.
NFTs can represent a wide range of digital and physical items, such as artwork, music, videos, virtual real estate, collectibles, and more. The uniqueness and scarcity of NFTs make them desirable to collectors and enthusiasts.