Are Blockchain Labels new?
Yes, but not the technology. A number of different technical buildings blocks have been under development for over the last decade. These technologies are at that point where the core functions are mature. More importantly, user adoption of these technologies have been exponentially accelerating over the last several years. Some of these core building blocks include:
- Digital wallet – Think of this as your keys to your home or bank safe. It is required to do perform transactions such as transferring digital ownership, or making any changes to the digital ledger. Popular wallets include: MetaMask, Ledger, Tezos.
- Blockchain – This is the decentralized ledger to safely store data. This is the “glue” or base that applications sit on top of. Some popular chains include: Polygon, Binance, and Solana.
- A global Token Standard – Like the English language, computer programs also need an agreed upon language to speak with one another. This ensures when a specific request is made, there is an expected response. The two most popular standards as it relates to non-fungible tokens are ERC721 and ERC1155. It is important to pick well developed standards that are supported by wallets, marketplaces, and new applications being built.
- Digital Marketplaces – These are places where people can list their products (tokens) to trade with others. They have similarities to Amazon’s marketplace. One popular marketplace is OpenSea.io
- A user-friendly Graphical User Interface (GUI) – interacting with the blockchain requires complex software programs even for simple task of reading a name. Websites such as etherscan.io now exist that allow users to perform read/write actions with the blockchain without having to understand complex software code.