What NFTs are is the question on everyone’s mind in the blockchain community today. Those who have been following the ICO space are aware of the recent surge in popularity of these helpful little tokens. With the popularity of Crypto Kitties and several other projects, NFTs are certain to get more attention as we head into 2019 and beyond. So what exactly are Non-Fungible Tokens (NFTs), and why do they matter? Your responses are down below!
When something is fungible, it is equal to or interchangeable with another object. However, everything is non-fungible when two or more of it are not equivalent and cannot be swapped. A blockchain network can contain both fungible and non-fungible things, with non-fungible tokens still being used for a number of purposes. 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 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. For example, let’s say your dog has a rare disease that causes his ears to fall off. Anyone who owns an ERC721 token reflecting your dog and its condition is now a part owner.
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. Because of this amazing community experience, users now frequently transact with non-fungible tokens! 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. 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 example, players may use real money to buy and sell virtual cats in video games like Crypto Kitties, which is made feasible 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.
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