Due to the blockchain focus week, my teammate Waldemar and I decided to revisit the basics. While both of us had a basic understanding of the technology, we also had a few open questions and were curious about NFTs (non-fungible tokens). In the process of discussing these, we decided to complement the articles we already read by some more basic ones and share them in this article on the BCP.

And here it is: Our overview on the topic of blockchain. Structured around key questions, we have compiled articles that we believe provide a good overview. We have tried to cover everyone: people without any prior knowledge as well as interested people who know the basics and care about applications of the technology. Just scroll down, until you reach the section most appealing to you ;)

In the following, the article is divided into five sections: Each of these sections represents an overarching category and raises some questions about it. For each question, we have linked articles and videos that allow everyone to familiarize themselves with the topic. For those in a hurry, we have provided a short summary. But the intention is to provide a collection of articles. The sections are:

  1. Blockchain Basics

  2. Tokens

  3. Debates around NFTs and blockchain

  4. Blockchain in the real world (El Salvador)

  5. Final thoughts

Blockchain Basics

The first section is focusing on the two following questions:

  1. What is the blockchain and how does it work?

  2. What is the difference to cryptocurrencies?

What is Blockchain and how does it work?

Blockchain combines cryptography with distributed computing. A network of computers collaborate to maintain a shared and secured database. This database consists of a string of encrypted blocks with a unique identifier. The computers within the network are validating the transactions and will add them as a block to the chain of blocks. As a verification all computers need to agree to validate the changes. The blocks are linked linear within the chain and cannot be deleted.

If you like to dig deeper you can check out this videos:

What is the difference to cryptocurrencies?

The term blockchain is often used in connection with cryptocurrencies. Cryptocurrencies are virtual currencies. For fiat currencies financial institutions and cash are providing trust and security. Instead of having a middle man, that provides trust, cryptocurrencies are using blockchain as a technology to store all transactions on the blockchain. The coins are used to store and trade value. For a more interactive explanation you can watch this video https://www.youtube.com/watch?v=rYQgy8QDEBI


Besides of blockchain and crypto – NFTs are buzzwords in the media. NFTs are tokens but:

  1. What are tokens?

  2. What is a non-fungible token (NFT)?

  3. How do NFTs work?

What are tokens?

A token is like a coin, a quantified unit of value recorded on a blockchain. Coins are the native currency on the blockchain and tokens are made on existing blockchains e.g. ETH is the native currency on the open source blockchain Ethereum.

In the Ethereum Request for Comments 20 a token is described as:

“Tokens can represent virtually anything in Ethereum:

- reputation points in an online platform

- skills of a character in a game” […]

Crypto coin vs token: what's the difference? - The Face

What are non-fungible tokens?

Tokens can represent anything e.g. products or services. They can express their fungibility property with code on a blockchain. A non-fungible token (NFT) is not interchangeable and with the technology of a blockchain it can be proved the NFT is the original digital product and to whom the ownership belongs.

How do NFTs work?

Besides ownership etc. a NFT is creating a digital scarcity of a digitally created product.

With the so called minting a digitally created picture will transform into a NFT as an asset on the blockchain. Now every trade can be digital tracked. To start trading /selling the NFT you need to choose a marketplace (OpenSea, SolSea, etc.). The marketplaces also allow you to mint your product.

For more information you can read this article

or deep dive with this guide

The terms of agreement for NFTs are defined in smart contracts. If you deal with blockchain, you will quickly come across the topic of smart contracts in addition to cryptocurrencies. As a program on the blockchain the smart contracts can get self-executed after special conditions are fulfilled as e.g. a NFT was sold the program also sends ETH coins to the NFT creator (royalties) or e.g. to implement a toll system, where the toll is automatically paid when a car enters certain area.

In general, these can be used for a wide variety of applications. The following article outlines some examples from public administration to healthcare, supply chains and real estate:

What are examples of NFTs

We summed up how blockchains are working and what tokens on the blockchain are. Now we want to show you some examples of NFTs. As already mentioned NFTs can be anything e.g.

  • Digital art traded on marketplaces like https://foundation.app/nfts

  • Digital items like this shoes MetaGrail | THE X EVOLUTIONS which can be used in other applications.

  • Very popular are collectables like:

    • BAYC (boredapeyachtclub.com)

    • CryptoPunks (larvalabs.com).

Also famous brands like Nike and Adidas are investing:

  • Nike acquired RTFKT - NIKE, Inc. Acquires RTFKT - Nike News for digital shoes.

  • Adidas is “jumping in the metavers” and is selling NFTs on OpenSea

  • Adidas is combining the digital NFT with a physical merchandise.


As you see there are a lot of NFT types for more you can check out this website:

You find the topic exciting and still can't get enough of it? We have more for you in part 2!