NFTs

A few days ago, a friend approached me and asked, "Hey, do you know about NFTs?"

At the time, I didn’t know much, so I replied, "I’m not sure, but why do you ask?"

She went on to explain that she runs an Instagram account where she shares her handmade drawings. One day, someone messaged her and asked if she’d be interested in selling the ownership rights to her drawings—for ₹5 lakhs each!

Interesting, isn’t it? So, this deep dive into NFTs is inspired by those ₹5 lakhs...

Just kidding. It’s all for my dear friend.

Let’s explore:

What Are NFT Monkeys or Bored Apes?

Backed by Web 3.0 startup Yuga Labs, the Bored Ape Yacht Club (BAYC) consists of over 10,000 unique "Apes," each with its own distinct properties.

These "NFT Monkeys" feature diverse characteristics—punk styles, quirky attitudes, and unique clothing combinations. But the most intriguing aspect is their value.

With the skyrocketing popularity of NFTs, Bored Apes sell for as much as 2,090 ETH, or around $3.4 million! Compared to other NFTs, this is exceptionally high.

The price of these Apes is expected to rise as demand increases. The higher bidders are willing to go, the more expensive these digital collectibles become.

Here’s what a typical Bored Ape looks like:



Each Ape is one of 10,000 unique digital artworks. For example:

Or even this:




Every NFT Ape has unique attributes like background, expression, glasses, skin tone, headgear, and more. These combinations create thousands of possibilities, making every Ape one-of-a-kind.

Once generated, these digital avatars can be bought, sold, or traded as NFTs.

What Are NFTs?

NFTs (Non-Fungible Tokens) are unique digital assets that exist exclusively online. They prove ownership of items like:

  • Digital art
  • Rare videos
  • Special digital collectibles

Even celebrities like Amitabh Bachchan and Salman Khan have launched their own NFT collections, sparking further public interest.

 

Think of an NFT as a certificate of authenticity for a digital file.

How Do NFTs Work?

Here’s how NFTs are created and function:

  1. Tokenization: A digital asset (like artwork) is assigned a unique code called a token, marking it as one-of-a-kind.
  2. Blockchain: This token is stored on a blockchain, a secure digital ledger that tracks ownership.
  3. Asset Storage: The actual digital file (art, video, etc.) is stored on a server or other storage platform.
  4. Connection: The token links to the digital asset, ensuring authenticity and ownership.

What Makes NFTs Special?

NFTs are unique and cannot be replicated, much like owning a rare physical painting or collectible. This makes them valuable for:

  • Artists who want to sell their work.
  • Collectors looking to own rare digital items.

What Can You Do With NFTs?

NFTs offer several possibilities:

  • Buy: Purchase an NFT using money or cryptocurrency.
  • Sell: Resell your NFT if someone offers a higher value.
  • Trade: Exchange NFTs for other digital assets or cryptocurrencies.

NFTs vs. Cryptocurrencies

  • Cryptocurrencies like Bitcoin are interchangeable—1 Bitcoin is the same as another.
  • NFTs are unique—no two NFTs are identical, even if they appear similar.

Popular Uses of NFTs

NFTs go beyond digital art. They are used in:

  1. Photography: Tokenized images that can be sold or owned.
  2. Sports: Digital collectibles featuring athletes and iconic moments.
  3. Trading Cards: Virtual cards used for gaming or as collectibles.
  4. Virtual Worlds: Ownership of digital land, clothing, or items in metaverses.
  5. Music: Musicians sell songs as NFTs, granting ownership or special access.
  6. Domain Names: Unique domains registered as NFTs.
  7. Collectibles: Famous series like Bored Ape Yacht Club or CryptoPunks.

Benefits of NFTs

  1. Market Efficiency: NFTs cut out middlemen, allowing direct sales between creators and buyers.
  2. Proof of Ownership: They provide secure, verifiable ownership of unique digital assets.
  3. Investment Opportunities: NFTs enable fractional ownership of high-value assets like real

Imagine you draw a smiley face on a banana, photograph it, and create an NFT. Owning the NFT means you own the original, digital version of the photo—even if others download or share it.

NFTs are revolutionizing how we think about ownership and creativity in the digital age. Whether you’re an artist, a collector, or simply curious, NFTs unlock endless possibilities for owning and trading unique digital assets.


UNTIL THE NEXT TIME, 

WORK HARD, SLAY HARDER 

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