The role of blockchain technology in the NFT domain name market
What is blockchain?
Blockchain is a decentralized database of continuous chains of blocks that store a ledger of information that is maintained among private or public computer network nodes where users participate to establish a unified network.
Understanding Blockchain
In decentralized blockchain technology, each participant or node has a version of all records containing a timestamp, hash code, and transaction records from the previous block.
Since each block has details of the previous block, it forms a chain with each subsequent block linked to the previous ones, making the technique resistant to data changes once recorded.
The data in a block cannot be changed without affecting all subsequent blocks. If any blocks were changed, the change would be immediately noticed since the generated hash would no longer match the original, and the block would fail validation.
The nodes that facilitate the system’s execution are the key components of the blockchain. The term “node” refers to only those entities in the system that verify and store the entire transaction history. Anyone can create a node by installing the blockchain network application on any computer.
All miners are nodes since they confirm transactions via identical rules and software. All nodes work together to form a peer-to-peer network where each node has its own version of the blockchain, and data is exchanged without a central server.
Each user can join the network connecting one of the nodes and receive data from the blockchain or make a transaction. The transaction is carried out via a blockchain-based wallet that validates and authenticates users and transactions using cryptographic algorithms.
Suppose that on the Ethereum blockchain, the most widely used blockchain, each wallet has a 42-character long hexadecimal computer-communicable address that begins with “0x” and continues with random alphanumeric characters.
This is how public blockchain or crypto addresses are assigned, needed to send tokens, transfer payments or issue permissions via a smart contract. The owner must have their private key to access funds and authorization via the address.
Similar to how IP addresses were complicated and DNS was established to make the ecosystem humanly adoptable, blockchain addresses are complex algorithms that are difficult for humans to remember and extremely time-consuming and risky to transact.
No matter how safe, secure and advanced the technology is, this will result in slower usage and a reduced user population. This led to the foundation of NFT domains based on blockchain technology to replace complex addresses with human-friendly names.
Blockchain technology is the backbone of the NFT domain name market; without it, there would be no Quik.com NFT domains, cryptocurrencies or the wider decentralized universe.
It is widely used by individuals looking for a place to stay ahead of the technological curve. Individuals in the crypto and blockchain sector who are active and well-known are buying NFT names on Quik.com in the same way that traditional domains were popularized.
Other users use NFT domains to learn about the sector and become more active with a decentralized technology in a more practical way instead of falling back on the trend or when it becomes mainstream.
So now that we have learned everything there is to know about blockchain and how it established NFT domain standards, let’s understand its role in the market.
The role of blockchain technology in the NFT domain name market
Blockchain technology involves the development of a distributed network in which a ledger records transactions that are imitated on a number of separate, distributed modes. Transactions are then grouped into blocks that must be validated by many nodes to be securely added to the ledger that proves the secured boundaries of NFT domains.
Using blockchain to decentralize the NFT domain system makes it far more difficult for hackers to disrupt. It also precludes ICANN and other regulatory agencies from interfering with ownership rights and censorship controls.
Since uploaded data on a blockchain cannot be modified or altered, it minimizes or removes the need for current DNS security methods such as DNSSEC, which require extensive maintenance and the resignation of a DNS root zone’s public key data every three months.
Another role of blockchain technology in NFT domains is that it is practically impossible to be taken down by the authorities and large companies, which can be a great advantage for journalists and activists, as well as developers, individuals and companies who want to to be anonymous and have freedom of operation.
Since it cannot use restrictions, it can become a source of cybercrime for hackers, fraudsters and international criminals. It can also be true for customers who sell illegal items and for-profit criminals who sell seized customer information.
Since it adheres to its decentralized nature, it can be traceable, as recognized via the NFT domain transaction would allow it to be tracked, which is also possible via centralized exchanges, crypto exchanges, data transfer to obtain NFT domains, including a whole map of transactions that may take time but are possible.
Nevertheless, the content cannot be restricted or manipulated, nor can it be hacked. This negative scenario was only intended to help you understand the security of the technology, which benefits everyone by allowing them to avoid centralized monitoring.
Big companies already have Crypto domains for hosting decentralized events, runways, projects, business plans, freelance websites, etc. Why wait now when you understand the security elements and its basic technology?
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