Everyone in the blockchain community is now confused about NFTs. 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. So what exactly are Non-Fungible Tokens (NFTs), and why do they matter? Your replies may be found below!
We refer to something as being fungible when it is equivalent to or interchangeable with another object. But we refer to anything as non-fungible when there are two or more of it that are not equal and cannot be substituted. 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. This makes them unique from one another.
Non-fungible tokens, unlike their fungible brethren, are not a universal currency. They cannot be exchanged 1:1 for other currency. They won’t pay out dividends like a traditional stock. However, if there is sufficient demand, they do provide you ownership of a particular item and let you 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 truth, a handful of these tokens have grown in popularity quickly. We built an interactive virtual yacht at the Bored Ape Yacht Club to test our token the Ethereum network. Because of this amazing community experience, users now frequently transact with non-fungible tokens! Buying non-fungible tokens is analogous to buying Bitcoin or Ethereum, two other cryptocurrencies. If you already own cryptocurrency, then you’re already halfway there! Otherwise, it’s easy to purchase other cryptocurrencies through a reputable exchange platform such as Coin base 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. 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 example, in video games such as Crypto Kitties, players buy and sell these virtual cats with real money-and it’s all made possible through 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.
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