A Guide to NFTs from the Bored Ape Yacht Club
Everyone in the blockchain community is currently wondering what NFTs are. For those who have been paying attention to the ICO space, you know that these nifty little tokens have taken off in popularity in recent months. With the success of Crypto kitties and many others, NFTs are sure to become an even bigger topic of conversation as we move into 2019 and beyond. What are Non-Fungible Tokens (NFTs) exactly, and why are they important? Your replies may be found below!
When one thing is equal or interchangeable with another, we call those things fungible. However, when two or more things are unequal and cannot be interchanged, we call them non-fungible. A blockchain network can contain both fungible and non-fungible things, with non-fungible tokens still being used for a number of purposes. Because of this, they differ from one another.
Non-fungible tokens, unlike their fungible brethren, are not a universal currency. They cannot be exchanged 1:1 for other currency. They won’t pay out dividends like a traditional stock. However, they do give you ownership of a specific asset and allow you to trade it on secondary markets as long as there is enough demand for it. Let us say, for illustration, that your dog has a rare condition that renders him earless. If you create an ERC721 token that represents your dog and its condition, then Anyone who owns that token now owns part of your dog.
Actually, there is no restriction on who may utilize non-fungible tokens (NFTs). In fact, some of these tokens have become immensely popular in a short time. At Bored Ape Yacht Club, we created an interactive virtual yacht as a means of testing both our token and our Ethereum network. Users now often transact with non-fungible tokens thanks to this fantastic community experience! Buying non-fungible tokens are similar to buying other cryptocurrencies like Bitcoin or Ethereum. If you already have cryptocurrency, you are halfway there! Otherwise, it’s easy to purchase other cryptocurrencies through a reputable exchange platform such as Coin base or GDAX. You just deposit your cryptocurrency into your wallet using its specific address after buying it using USD, EUR, GBP, or any other conventional money.
Non-fungible tokens have recently risen to prominence as one of blockchain technology’s most novel innovations, but there are still many who do not quite grasp what they are or how they work. In a word, non-fungible tokens (NFTs) provide a means for representing and possessing separate digital assets in a decentralized network. They may have value due to scarcity or just because someone else finds them appealing. For instance, gamers may purchase and trade these virtual cats in video games like Crypto Kitties using real money, and this is all made possible by NFTs. In fact, some experts believe that NFTs could help transform our society by providing a new type of digital property ownership that is more equitable than traditional intellectual property laws.