# NFT basics

# What is an NFT?

NFTs, i.e. non-fungible tokens, are unique cryptographic tokens. Essentially, this boils down to a certificate of authenticity, which is linked to a file (picture, music, video, etc.) and stored on a blockchain. The blockchain itself is a decentralized network with the highest level of security; nothing can be manipulated here. Therefore, NFTs are unique and cannot be replicated. There is no safer certification in the digital world: a smart contract that keeps track of transactions, ownership and even copyright!

# What is a blockchain?

A blockchain is basically a digital record of transactions. The name comes from the fact that all those individual records, or blocks, are linked together in a single chain. Each transaction that is made in a blockchain is validated by multiple computers in the network, creating a secure peer-to-peer network to ensure each transaction is valid before it is added to the blockchain. Every new block is linked to the previous one: this ensures that the chain is never broken and that each block is permanently recorded. This decentralized network makes it impossible for a single system to add or manipulate invalid blocks to the chain. All those smart solutions within the blockchain technology make it the most secure and safe way to handle digital assets online, such as cryptocurrencies or NFTs.

# Why crypto for NFTs?

The blockchain technology and the cryptocurrency started out their history together and are mutually dependent. Each network even has its own “coins”, such as Bitcoin or Ether. The Ethereum network is the largest for NFTs. In our case, we work on an Ethereum sidechain called Polygon.

# What is Polygon/Matic?

Matic is an Ethereum token which is used for the Polygon Network (formerly known as MATIC), a multichain solution for Ethereum. Polygon realizes way cheaper, faster and more eco-friendly transactions on Ethereum using sidechains, which are blockchains that run alongside the Ethereum main chain. By using Polygon, we bypass all the issues that users face with Ether in the basic Ethereum mainnet currently, making NFTs way more usable for everyone.

# What’s about the carbon footprint?

NFTs and blockchains are becoming a big topic for discussion about carbon footprint and eco-friendliness. Our decision to go with Polygon plays a big role here. The Proof of Stake (PoS) consensus mechanism of Polygon works completely differently than most others, which are Proof of Work (PoW) blockchains.

As per estimates, the big PoW blockchains can consume a yearly amount of 35–140 TWh of electricity, with a continuous draw of 3–15 GW of electricity. By contrast, Polygon’s validators approximately consume 0.00079TWh of electricity yearly with an approximate continuous draw of 0.00009GW, which is a quite extreme and significant difference in comparison. With a network that is constantly improving to reduce its carbon footprint and with multiple solutions to drive eco-friendliness within companies, we aim to work as green as possible.

# What is the benefit of an NFT?

NFTs contain “digital assets'' that are stored on the blockchain. This is basically the safest way to manage something digitally online. The blockchain is controlled decentral via a huge network, every movement on it is documented unchangeably, nothing can be manipulated here. This means, an NFT is the first ever way to let you truly and probably own a digital asset.

# Are the NFT media assets stored on a decentralized storage?

No, they’re not. Like most NFT projects, we started out by storing our files and assets on IPFS but after we turned into an actual growing business trying to achieve highest standards for GDPR and compliance, but also for data security and encryption, this was no solution anymore for us. We are working with Arweave and AWS, hosting our files in Germany and obeying all regulations we have whilst being safe and reliable for our needs and those of our customers.

# You say on license.rocks I don’t have to deal with cryptocurrency, how does this work?

Our goal is to make NFTs accessible for everyone. As discussed before, NFTs are built on a blockchain, using cryptocurrency and other complicated technology. By using versatile and smart solutions such as the Magic Link Wallet and smart payment providers, we take away all the headache from the user and open the gate for everyone to explore the world of NFTs without any worries. We take care of those things automatically and safely in the background.

# What are NFT Airdrops?

Basically, an NFT airdrop is the transfer of NFTs to a user’s account or wallet. This can be a limited NFT at a launch or an additional NFT that only users who already own another specific NFT get. You can use it to secure exclusive content and be rewarded for loyalty! The minimum requirement is that you have an account on the marketplace or have your own wallet, and of course NFTs that come via airdrop are always free.