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 popularity of Crypto Kitties and several other projects, NFTs are certain to get more attention as we head into 2019 and beyond. What are Non-Fungible Tokens (NFTs) exactly, and why are they important? We’ve got your answers below!

We refer to something as being fungible when it is equivalent 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. This makes them unique from one another.

Non-fungible tokens, unlike their fungible cousins, do not serve as a kind of universal money. They cannot be exchanged for other currencies at a 1:1 ratio. 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.

In reality, there are no restrictions on who can use non-fungible tokens (NFTs). In reality, a few of these tokens have rapidly gained popularity. We built an interactive virtual yacht at the Bored Ape Yacht Club to test our token the 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, 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 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. In a word, non-fungible tokens (NFTs) provide a means for representing and possessing separate digital assets in a decentralized network. They may be valuable because of scarcity or just because someone else finds them desirable. 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.