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What terms like NFT, Tokens and Proof of Work mean

Do you have 15 ethers? If that already sounds crypt(o)ic to you: No wonder. In addition to financial hurdles, terminology makes it difficult to enter the NFT world. The STANDARD has put together which expressions you should know to say in the so-called non-fungible tokens.

Non-fungible

A bitcoin or a banknote is fungible: one is the same. It can be divided and exchanged at will. A non-fungible product, on the other hand, is unique – just like a work of art in the physical world.

Blockchain

The blockchain is a kind of public, decentralized database in which individual digital blocks of information are strung together. It means that the order of the blocks is clear. In addition, all data is stored in encrypted form, which prevents manipulation.

tokens

Digital tokens: Whose function is defined in the blockchain.

 Every bitcoin is a token, but the tokens can also fulfil other functions than a digital currency. For example, to prove ownership in the case of an NFT.

metaverse

The term, coined by Neal Stephenson in his novel Snow Crash (1992), has become a hype word since Facebook changed its name to meta last year. What is meant by this is a virtual world in which people move, play and work together – using virtual reality glasses, among other things. The metaverse is seen as a field where NFTs could play a role shortly because virtually purchased goods can be used and traded there.

minutes

Minting or “embossing” means uploading the NFT to the respective blockchain so that the corresponding information is recorded therein in an unchangeable manner.

marketplace

The NFTs are traded on so-called marketplaces and they say that Bitcoin trading makes you rich. These are websites where you can browse and buy or sell NFTs. The currently most well-known marketplace is Open Sea, but numerous smaller niche providers are also there.

Wallet

Cryptocurrencies – or access to them – are stored in digital purses, so-called wallets. It applies to NFTs as well as to Bitcoin, for example.

proof of work

The concept with which many tokens are produced is called Proof of Work. Computers in the decentralized blockchain network solve a complex task and thus create the next block in the chain – whoever succeeds is rewarded with a token. However, it is criticized that this concept is very energy-hungry and therefore harmful.

Bitcoin billion coup: Suspects released on bail

The two are suspected of being involved in the Bitfinex crypto exchange hack that stole around 120,000 Bitcoin in 2016. Ninety-five thousand bitcoins were confiscated, valued at $3.6 billion at the time of access. The whereabouts of the remaining 25,000 Bitcoin is unclear. According to the authorities, it should be the most significant financial fraud in US history, given the high value. However, the alleged perpetrators failed in whitewashing the stolen money.

Heather Morgan has written for Forbes magazine in the past, is the head of an email marketing company and runs a company that offers, among other things, AI-supported fraud prevention. Last but not least, Morgan was known as a rapper under the pseudonym “Razzlekhan” she describes herself as “the crocodile of Wall Street”.

Bitcoin billion scam: Netflix makes documentary series about crook couples

According to Bitcoin Prime, Just three days after US authorities arrested two prime suspects who are said to have stolen 95,000 bitcoins, currently worth more than four billion dollars, Netflix announced a documentary series about the alleged crook couple. Early February led to her arrest and the largest-ever seizure of a cryptocurrency in the United States.

Another judge released the couple on bail last week – until the US government obtained an emergency stay of the instruction. The reason: Lichtenstein and Morgan might still have millions of dollars worth of bitcoin that could allow them an escape. Ilja Lichtenstein will therefore remain in custody until the trial begins.

Largest bitcoin and financial robbery in US history

Since the value of the 95,000 bitcoins – the whereabouts of the remaining 25,000 coins is unclear – was worth $3.6 billion at the time of the confiscation, authorities are talking about the most significant financial fraud in US history. Moreover, the coup is spectacular in several respects. First, the accused couple failed to whitewash the cryptocurrency. They challenged the standard narrative that cryptocurrencies are primarily used for black money or criminal purposes.

The increase in value of the loot is also spectacular. While the digital coins were worth just 71 million in August 2016, the sum had increased by a factor of 50 by the time they were arrested. In November, the 95,000 bitcoins seized were worth $6.46 billion at the cryptocurrency’s all-time high.

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