NFT Technology Explained
NFTs, or Non-Fungible Tokens, are tokens stored on the same blockchain technology as Ethereum and Bitcoin. However, besides this similarity, NFTs and cryptocurrencies are significantly different.
For instance, cryptocurrencies, like the Bitcoin, are essentially “fungible tokens”. Fungible tokens can be exchanged or swapped for each other. In addition, fungible tokens maintain the same value, that is, one Bitcoin is always worth another Bitcoin. This essentially captures the element of fungible tokens as a unit of value.
On the contrary, “Non-Fungible Tokens” (or NFTs) contain a unique digital signature that distinguishes the particular token. This restricts such a token (NFT) being equal to another. NFTs derive their name (“non-fungible”) from their property of being unique. For example, an individual who trades a rare game collectible would not receive a rare game collectible, but instead a different good or unit of value.
The “non-fungible” properties of NFTs make them unique and irreplaceable. As a result, to employ these properties, individuals are using NFTs to represent unique digital media files, such as paintings, photos, cards, game collectibles, music, and virtual lands in an online fantasy game. The ability of NFTs to capture any differentiation between digital media has even led to the creation of NFTs of tweets published on Twitter to make them a special and unique file in the digital world.
For instance, anyone can download a copy of the digital artwork by Beeple called “Everydays” from the internet. However, the rightful owner of the original digital artwork is the individual who paid nearly US$70 million for this right through the purchase of the NFT.
Currently, Ethereum is the most popular, reliable, and stable blockchain technology employed for the creation of NFTs. Increasingly, other public blockchain networks are also supporting the creation of NFTs.
For instance, the Binance Smart Chain (BSC) and Polygon Network (Previously Known as Matic) have been witnessing significant digital asset activities, ranging from token swaps and decentralised money markets (DeFi) to creation and sale of NFTs.
Several options in the marketplace are now available, and provide individuals with an opportunity to earn and generate a yield, start a collection, or just have fun.
The purchase of NFTs require the user to open a digital wallet that allows for the storage of NFTs and cryptocurrencies. Subsequently, the user must purchase the cryptocurrency that is accepted by the NFT provider. This cryptocurrency can be used to purchase the digital asset on the NFT marketplace, such as OpenSea.
Cryptocurrencies can be obtained with relative ease from existing marketplaces, such as Coinbase, Karen, and eToro. Even traditional payments merchants and brokers like PayPal and Robinhood allow for the purchase of cryptocurrencies using fiat, such as US Dollars, Euros, or British Pounds. Users can easily transfer the purchased cryptocurrency to any wallet of their choice.
In addition, on October 29th, 2021, you can also purchase (or mint), the PugApe Society’s NFTs on our website using any cryptocurrency wallet of your choice. Following this, users can purchase the PugApe NFTs on OpenSea Secondary Marketplace for NFTs.
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