# Chapter 1: Understanding the Basics

## Guild Wars 1: The Game and Its Economy

Guild Wars 1, an acclaimed MMORPG developed by ArenaNet, offers players an immersive and dynamic world. Its economy is based on in-game currency (Gold and Platinum), items, and materials. Players can trade these assets with each other or with NPCs, driving an active marketplace. An important aspect of the game economy includes the generation and elimination of gold via quests, drops, and the use of various "gold sinks" like NPC services or crafting.

## An Introduction to Blockchain and Cryptocurrency

The term 'blockchain' refers to a decentralized, transparent, and immutable ledger system. It consists of blocks of data (transactions, contracts, etc.) linked together chronologically. One of its major applications is in cryptocurrencies like Bitcoin and Litecoin, which are digital assets that rely on cryptography for secure transactions. Cryptocurrencies operate on blockchain platforms and are mined, bought, or sold on various exchanges.

## An Introduction to NFTs

Non-fungible tokens (NFTs) represent a unique class of digital assets on the blockchain. Unlike cryptocurrencies, which are fungible and identical to each other, NFTs possess unique attributes and are indivisible, meaning each token has its own distinct value. They're typically associated with digital art, music, virtual real estate, and virtual goods in games. NFTs have the potential to revolutionize digital ownership and the monetization of digital content.

## Litecoin Ordinals and LTC-20 Tokens

Litecoin, often considered the silver to Bitcoin's gold, is a peer-to-peer cryptocurrency that was developed by Charlie Lee in 2011. It offers faster transaction times and a different hashing algorithm compared to Bitcoin. LTC-20 Tokens are digital assets that exist on the Litecoin blockchain. They can represent a wide range of assets, including both tangible and intangible goods, and are a key part of many decentralized applications.

The Ordinals protocol incorporates a sophisticated numbering system that assigns a unique serial number, referred to as an ordinal, to each satoshi (the smallest unit of Bitcoin). This enables meticulous tracking of each satoshi's movements throughout various transactions. Similarly, the LTC-20 standard uses an advanced feature that facilitates the creation of off-chain transactions through the effective utilization of labels. These tokens can represent a wide range of assets, including in-game Currencies, NFT Gear, and Fungable Materials.&#x20;
