A Guide to NFTs from the Bored Ape Yacht Club
Everyone in the blockchain community is now confused about NFTs. For those who have been following the ICO area, you are aware of the recent explosion in popularity of these useful tiny tokens. With the success of Crypto Kitties and other initiatives, NFTs are set to gain traction in 2019 and beyond. So what exactly are Non-Fungible Tokens (NFTs), and why do they matter? 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. Both fungible and non-fungible items can exist within a blockchain network, but tokens that do not fall under fungibility can be used for different purposes. Because of this, they differ from one another.
Non-fungible tokens, unlike their fungible cousins, do not serve as a kind of universal money. They cannot be exchanged 1:1 for other currency. They won’t pay out dividends like a traditional stock. However, if there is enough demand, they will give you ownership of a certain object and allow you to trade it on secondary markets. Assume your dog suffers from an uncommon ailment that causes him to be deaf. Anyone who possesses an ERC721 token representing your dog and its condition will now be a part owner of your dog.
In reality, there are no restrictions on who can use 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! Purchasing non-fungible tokens is comparable to purchasing Bitcoin or Ethereum, two other cryptocurrencies. If you already own cryptocurrency, then you’re already halfway there! Otherwise, purchasing other cryptocurrencies is as simple as visiting a reputable exchange site such as Coinbase or GDAX. You just deposit your cryptocurrency into your wallet using its unique address after purchasing it using USD, EUR, GBP, or any other traditional currency.
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. Some experts even think that NFTs, which offer a new kind of digital property ownership that is more equal than conventional intellectual property regulations, might help revolutionize our society.
