A Guide to NFTs from the Bored Ape Yacht Club
Everyone in the blockchain community is currently wondering what NFTs are. Those who have been following the ICO space are aware of the recent surge in popularity of these helpful little tokens. 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? We’ve got your answers below!
When something is fungible, it is equal to or interchangeable with another object. 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 objects, although non-fungible tokens can still be utilized for a variety of reasons. They differ from one another because of this.
Non-fungible tokens, unlike their fungible brethren, are not a universal currency. They can’t be traded 1:1 with other coins in exchanges. They will not distribute dividends as a conventional stock would. 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. For example, let’s say your dog has a rare disease that causes his ears to fall off. 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.
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. To test our token and the Ethereum network, we developed an interactive virtual yacht at the Bored Ape Yacht Club. 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 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 unique address after purchasing it using USD, EUR, GBP, or any other traditional currency.
Although non-fungible tokens have recently garnered prominence as one of the most revolutionary breakthroughs in blockchain technology, many people are still confused about what they are and how they work. Simply put, non-fungible tokens (NFTs) provide a way for you to represent and own unique digital assets on a decentralized network. They can be valuable because of their scarcity or simply because someone else appreciates them. 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.