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 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. So what exactly are Non-Fungible Tokens (NFTs), and why do they matter? We’ve got your answers 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 objects, although non-fungible tokens can still be utilized for a variety of reasons. They differ from one another because of this.
, Unlike their fungible counterparts, non-fungible tokens do not function as a kind of universal money. They cannot be exchanged for other currencies at a 1:1 ratio. They will not distribute dividends as a conventional stock would. However, if there is enough demand, they will give you ownership of a certain object and allow you to trade it on secondary markets. Let us say, for illustration, that your dog has a rare condition that renders him earless. 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 truth, a handful of these tokens have grown in popularity quickly. At Bored Ape Yacht Club, we created an interactive virtual yacht as a means of testing both our token and our Ethereum network. The result has been an amazing community experience that has users transacting with non-fungible tokens daily! Buying non-fungible tokens is analogous to buying Bitcoin or Ethereum, two other cryptocurrencies. If you already have cryptocurrency, you are halfway there! Otherwise, buying other cryptocurrencies is simple using a reliable exchange site like Coinbase or GDAX. Once you’ve purchased your cryptocurrency using USD, Euros, pounds sterling or any other traditional currency, you simply transfer it into your wallet using its unique address.
Although non-fungible tokens have lately gained notoriety as one of the most innovative developments in blockchain technology, many people are still unsure of what they are or how they operate. Non-fungible tokens (NFTs), in a nutshell, provide you with a mechanism to represent and possess distinctive digital assets in 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.