Let us consider an example. You pay a visit to a restaurant. You are paying the restaurant directly if you use cash. In case you use a credit or debit card, you are actually paying the institution that backs the card and then the institution pays the restaurant. Obviously, the institution deducts their fees. Contrary to this, if you are paying using cryptocurrencies, the payment is transferred directly over the blockchain network. The member of the network performs the verification process on transactions as opposed to the third-party institutions.
Is this just a fad?
If you’re asking why anyone would pay over $1,000 for a virtual Christmas sweater with the Bitcoin logo all over it, perhaps you’re not in the right place. But it is entirely possible that the whole NFT obsession may prove a fad – or not. Many of the first NFTs were in the style of CryptoPunks, pipe-smoking digital beings that date back to 2017, and CryptoKitties, cute virtual felines that started the same year.
“We haven’t had an opportunity like this in the past 500 years.”
That’s Amir Taaki speaking on a closing panel at the Web3 Summit in Berlin Wednesday, and his statement was greeted with breathless applause by the audience. An early bitcoin developer, Taaki addressed a crowd of more than a thousand coders that had gathered to discuss “Web 3.0” – or the restructuring of internet infrastructures with an emphasis on decentralization.