Crypto Basics

What are NFTs? NFT Art Explained | Future of NFTs

Learn more about NFTs and their future.
Token Metrics Team
6 minutes
MIN

You may have heard of CryptoPunks, Bored Ape Yacht Club, and VeeFriends, but you may not understand what they are. These names may sound like random combinations of words, but they actually represent some of the most valuable non-fungible token (NFT) projects that have emerged in the past few years.

The world of crypto art and NFTs may appear complex and mysterious, with a mix of celebrities, influencers, and internet experts. But it's not as confusing as it seems. Let's start from the beginning.

What Is An NFT?

Nearly all crypto art that has been introduced to the market has been done so through the minting of non-fungible tokens (NFTs). NFTs are digital assets that have verified proof of ownership. While "fungible tokens" like the US dollar can be easily traded (like exchanging 4 quarters for a dollar), each NFT is unique and cannot be easily traded. For example, imagine a sketch of "Starry Night" by Vincent Van Gogh that has been authenticated by a fine art appraiser as an original. This sketch would be non-fungible because you could not easily exchange it for, say, an original sketch by Leonardo da Vinci. This concept is easy to understand with tangible items like art pieces or collectible cards, but when digital assets can range from a celebrity tweet to an iconic meme to a picture of a pimped out animated ape, it may be confusing.

How Can We Ensure Unique Authenticity?

This is where NFTs enter the scene. Say you are a graphic design artist who just finished your newest 1-of-1 piece of work and you want to sell it as an NFT. Whoever purchases this piece would not only receive the artwork but they would also receive a “digital receipt” that proves that this exact piece is original, unique and authentic.

“But What If I Just Screenshot This Digital Artwork? Wouldn’t I Technically Own the Piece as Well?”

This is the first question that many have mockingly asked on social media and internet forums. The easy answer: yes, you can screenshot practically all digital artwork, but no, that does not mean you own it.

For example, millions of people swarm into the Louvre every year, waiting patiently amidst a giddy crowd, just to capture a picture of the priceless Mona Lisa. Obviously, a picture of the Mona Lisa saved on your iPhone camera roll does not mean that you own that painting.

NFTs work the same way.

Just as the Louvre paid millions of dollars to own, maintain, and display the Mona Lisa in their museum, NFT buyers do the same. However, the main difference is that instead of paying dollars to house the art in a fancy museum, they are paying with cryptocurrency and housing their art in a virtual showcase, so to speak.

This is the basis for how NFTs, cryptocurrency, and blockchain technology are establishing a new and lucrative market for digital art and artists.

The Art of Being Digital

In a 2021 interview, Gary Vaynerchuk (founder of Vayner Media and creator of VeeFriends) made the following statement regarding NFTs. The interviewer remarks on the tangibility of NFTs stating, "the digital aspect, like, you can't see it" — Gary jumps in:

"Well, you can't see a blue check on Instagram? I don't walk around the world with a blue check tattooed on my forehead, but everybody sees it. You can't see my 9 million followers on Instagram, or can you? I would argue the reverse. I would argue that people can't see most of the fancy things you have in your house; that people can see more digital than real life."

And he's onto something, and I'd like to call that something "The Art of Being Digital". In our highly digitized world, our online outreach and interconnectivity is wildly amplified. Gary Vee currently has 9.9 million followers on Instagram — but without access to the internet — he has no way of interacting with that community and tapping into the true power of those 9.9 million people.

Why Do NFTs Have Value?

The value of an NFT is determined by the collective intentionality of those who are willing to buy and sell them. In other words, the value of an NFT is based on what people are willing to pay for it. This is similar to the way that the value of traditional art is determined by the market, with the value being based on factors such as the artist's fame and the rarity of the work.

The Tom Brady example illustrates this idea. On the surface, it might seem strange that someone would pay $430k for a digital picture of a cartoon ape. However, if we consider the fact that the buyer was Tom Brady and the seller was the well-known digital artist Trevor Jones, it becomes clearer that the value of the NFT was determined by the collective intentionality of those involved in the transaction.

Furthermore, the digital art of NFTs offers more than just a digital file and a high price tag. NFTs provide the ability for digital artists to monetize their work and for collectors to own and trade unique digital items. This opens up new opportunities for artists and collectors alike, and has led to the growth of a vibrant and exciting market for NFTs.

Join The Club

Celebrities such as Tom Brady, Post Malone, Steph Curry, and Jimmy Fallon have been buying Bored Ape NFTs. Bored Ape NFTs were introduced by the Bored Ape Yacht Club (BAYC) in April 2021 at a price of 0.08 Ethereum (ETH) each, or about $190 at the time. Since then, the price of Bored Apes has increased significantly, yielding substantial returns for early investors.

In addition to the potential for financial gain, buying a Bored Ape NFT also grants the buyer access to the BAYC community. This includes access to the BAYC Discord, where buyers can connect with other members of the club, including celebrities, and collaborate on NFT-related projects. BAYC also gives members priority access to future NFT drops, allowing them to expand their collections.

Minting and selling NFTs can also be highly lucrative for those who create their own NFT projects. This is another reason why celebrities and others may be interested in the NFT market. Creating and selling NFTs allows artists and other creators to monetize their digital work and gives collectors the opportunity to own unique digital items. The growth of the NFT market has created new opportunities for both artists and collectors, leading to a vibrant and exciting market for NFTs.

Blockchain, Smart Contracts, and Secondary Sales

Blockchain technology is used to record the conversion of traditional currency into cryptocurrency, such as Ethereum (ETH), in the NFT market. This transaction is recorded on the blockchain as public information that is easily accessible to anyone who wants to view it. This ensures transparency and helps to prevent fraud in the NFT market.

Smart contracts are programs stored on the blockchain that allow NFT creators to stipulate the conditions of resale. For example, a creator could draft a smart contract that allows them to earn a 10% commission on any subsequent resales of their NFT. This allows creators to continue to benefit from the success of their work, even after the initial sale.

Smart contracts also facilitate secondary sales in the NFT market. When the value of an NFT increases, the smart contract associated with that NFT can automatically distribute any profits from the sale to the relevant parties, such as the creator or the NFT platform. For example, if the value of Tom Brady's Bored Ape NFT increased from $430k to $530k, the smart contract could automatically distribute the $100k profit to the Bored Ape Yacht Club, if that was stipulated in the contract.

This use of smart contracts helps to ensure that all parties are fairly compensated for their contributions to the NFT market, and it allows for efficient and transparent transactions without the need for intermediaries.

The Future Of Crypto-Art

Grammy-winning artist Tyler, the Creator recently questioned the value of NFTs, stating that most of the examples he has seen are not "beautiful art." While art is subjective and many NFTs are AI-generated, there are still many ways in which NFTs can offer value in the real world.

First, NFTs can be used to represent tangible experiences and achievements. Instead of framing a concert ticket or a season pass, these items could be represented as NFTs, allowing individuals to proudly display their experiences and achievements in the digital world. This could be especially beneficial for VIP experiences and exclusive memberships.

Second, NFTs can provide a level of authenticity and scarcity that cannot be achieved with physical items. This is especially useful for limited edition items and collectibles, which can be authenticated and traded easily on the blockchain.

Third, the use of smart contracts can ensure that all parties are fairly compensated for their contributions to the NFT market. This allows for transparent and efficient transactions without the need for intermediaries.

Overall, while some may dismiss NFTs as "silly little digital artworks," they have the potential to reshape not just the art world, but the world itself.

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Fast API design is no longer just about response time — it’s about developer ergonomics, safety, observability, and the ability to integrate modern AI services. FastAPI (commonly referenced by the search phrase "fast api") has become a favored framework in Python for building high-performance, async-ready APIs with built-in validation. This article explains the core concepts, best practices, and deployment patterns to help engineering teams build reliable, maintainable APIs that scale.

Overview: What makes FastAPI distinct?

FastAPI is a Python web framework built on top of ASGI standards (like Starlette and Uvicorn) that emphasizes developer speed and runtime performance. Key differentiators include automatic request validation via Pydantic, type-driven documentation (OpenAPI/Swagger UI generated automatically), and first-class async support. Practically, that means less boilerplate, clearer contracts between clients and servers, and competitive throughput for I/O-bound workloads.

Async model and performance considerations

At the heart of FastAPI’s performance is asynchronous concurrency. By leveraging async/await, FastAPI handles many simultaneous connections efficiently, especially when endpoints perform non-blocking I/O such as database queries, HTTP calls to third-party services, or interactions with AI models. Important performance factors to evaluate:

  • ASGI server choice: Uvicorn and Hypercorn are common; tuning workers and loop settings affects latency and throughput.
  • Blocking calls: Avoid CPU-bound work inside async endpoints; offload heavy computation to worker processes or task queues.
  • Connection pooling: Use async database drivers and HTTP clients (e.g., asyncpg, httpx) with pooled connections to reduce latency.
  • Metrics and profiling: Collect request duration, error rates, and concurrency metrics to identify hotspots.

Design patterns: validation, schemas, and dependency injection

FastAPI’s integration with Pydantic makes data validation explicit and type-driven. Use Pydantic models for request and response schemas to ensure inputs are sanitized and outputs are predictable. Recommended patterns:

  • Separate DTOs and domain models: Keep Pydantic models for I/O distinct from internal database or business models to avoid tight coupling.
  • Dependencies: FastAPI’s dependency injection simplifies authentication, database sessions, and configuration handling while keeping endpoints concise.
  • Versioning and contracts: Expose clear OpenAPI contracts and consider semantic versioning for breaking changes.

Integration with AI services and external APIs

Many modern APIs act as orchestrators for AI models or third-party data services. FastAPI’s async-first design pairs well with calling model inference endpoints or streaming responses. Practical tips when integrating AI services:

  • Use async clients to call external inference or data APIs to prevent blocking the event loop.
  • Implement robust timeouts, retries with backoff, and circuit breakers to handle intermittent failures gracefully.
  • Cache deterministic responses where appropriate, and use paginated or streaming responses for large outputs to reduce memory pressure.

Deployment, scaling, and observability

Deploying FastAPI to production typically involves containerized ASGI servers, an API gateway, and autoscaling infrastructure. Core operational considerations include:

  • Process model: Run multiple Uvicorn workers per host for CPU-bound workloads or use worker pools for synchronous tasks.
  • Autoscaling: Configure horizontal scaling based on request latency and queue length rather than CPU alone for I/O-bound services.
  • Logging and tracing: Integrate structured logs, distributed tracing (OpenTelemetry), and request/response sampling to diagnose issues.
  • Security: Enforce input validation, rate limiting, authentication layers, and secure secrets management.

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What is the difference between FastAPI and Flask?

FastAPI is built for the async ASGI ecosystem and emphasizes type-driven validation and automatic OpenAPI documentation. Flask is a synchronous WSGI framework that is lightweight and flexible but requires more manual setup for async support, validation, and schema generation. Choose based on concurrency needs, existing ecosystem, and developer preference.

When should I use async endpoints in FastAPI?

Use async endpoints when your handler performs non-blocking I/O such as database queries with async drivers, external HTTP requests, or calls to async message brokers. For CPU-heavy tasks, prefer background workers or separate services to avoid blocking the event loop.

How do Pydantic models help with API reliability?

Pydantic enforces input types and constraints at the boundary of your application, reducing runtime errors and making APIs self-documenting. It also provides clear error messages, supports complex nested structures, and integrates tightly with FastAPI’s automatic documentation.

What are common deployment pitfalls for FastAPI?

Common issues include running blocking code in async endpoints, inadequate connection pooling, missing rate limiting, and insufficient observability. Ensure proper worker/process models, async drivers, and graceful shutdown handling when deploying to production.

How can I test FastAPI applications effectively?

Use FastAPI’s TestClient (based on Starlette’s testing utilities) for endpoint tests and pytest for unit and integration tests. Mock external services and use testing databases or fixtures for repeatable test runs. Also include load testing to validate performance under expected concurrency.

Is FastAPI suitable for production-grade microservices?

Yes. When combined with proper patterns—type-driven design, async-safe libraries, containerization, observability, and scalable deployment—FastAPI is well-suited for production microservices focused on I/O-bound workloads and integrations with AI or external APIs.

Disclaimer

This article is for educational and informational purposes only. It does not constitute professional, legal, or investment advice. Evaluate tools and architectures according to your organization’s requirements and consult qualified professionals when needed.

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What a "Free API" Really Means

Not all "free" APIs are created equal. The term generally refers to services that allow access to endpoints without an upfront fee, but differences appear across rate limits, data freshness, feature scope, and licensing. A clear framework for assessment is: access model, usage limits, data latency, security, and terms of service.

  • Access model: API key, OAuth, or anonymous endpoints determine how you authenticate and control usage.
  • Usage limits: Calls per minute/day, concurrency limits, and burst policies affect feasibility for real-time applications.
  • Data latency and granularity: Historical snapshots versus streaming updates change how you design ingestion and caching.
  • Licensing and redistribution: Check whether you can store, display, or redistribute data; free tiers often restrict commercial redistribution.
  • Support and SLA: Free tiers rarely carry guarantees—plan for graceful degradation and rate-limit handling.

How to Evaluate Free APIs: A Practical Checklist

Use a methodical approach to compare options. Below is a pragmatic checklist that helps prioritize trade-offs between cost and capability.

  1. Define requirements: identify throughput, freshness, and fields required. A small set of critical fields reduces bandwidth and simplifies caching.
  2. Measure performance: run latency and error-rate tests from your target regions. Free endpoints can be geo-constrained.
  3. Examine rate limits: build sample load tests to confirm call quotas and how the provider enforces throttling.
  4. Check data provenance: verify how data is sourced and updated; for derived metrics, inspect calculation methods and versioning.
  5. Review terms: confirm allowed use cases, retention rights, and attribution requirements.
  6. Plan fallbacks: design multi-source strategies and caching layers to mitigate outages or caps.

For crypto-specific datasets, platforms such as Token Metrics illustrate how integrated analytics and API endpoints can complement raw data feeds by adding model-driven signals and normalized asset metadata.

Integration Patterns and Best Practices

Free APIs are most effective when integrated with resilient patterns. Below are recommended practices for teams and solo developers alike.

  • Client-side throttling: implement token buckets or leaky buckets to smooth bursts and reduce 429 errors.
  • Edge caching: cache responses at the CDN or application edge, with TTLs determined by acceptable staleness.
  • Incremental syncs: prefer delta queries where supported to limit payload sizes and conserve rate limits.
  • Graceful degradation: show cached or approximate data when the API is unavailable to preserve UX continuity.
  • Monitoring & observability: track request counts, error rates, and latency; alert on policy limit warnings rather than only on failures.
  • Security: never embed API keys in public repositories; use vaults or server-side proxies for authentication.

Use Cases and Scenario Analysis

Understanding where a free API fits in your architecture depends on the scenario. Consider three common patterns:

  1. Rapid prototyping: Free API tiers let teams validate hypotheses quickly. Favor simplicity and low setup friction here; strict rate limits are acceptable for early tests.
  2. Research and backtesting: Historical endpoints with bulk download capabilities are valuable. For reproducible experiments, verify dataset completeness and snapshot timestamps.
  3. Light production workloads: Small applications can rely on free tiers if architects combine caching, retry strategies, and multi-source redundancy to manage availability risks.

When working with AI agents or automated analytics, instrument data flows and label data quality explicitly. AI-driven research tools can accelerate dataset discovery and normalization, but you should always audit automated outputs and maintain provenance records.

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FAQ: Common Questions About Free APIs

What limits should I expect on a free API?

Limits vary by provider but often include reduced daily/monthly call quotas, limited concurrency, and delayed data freshness. Review the provider’s rate-limit policy and test in your deployment region.

Can I use free APIs in production?

Yes for low-volume or non-critical paths, provided you incorporate caching, retries, and fallback logic. For mission-critical systems, evaluate paid tiers for SLAs and enhanced support.

How do I secure API keys for free tiers?

Store keys in environment-specific vaults, avoid client-side exposure, and rotate keys periodically. Use proxy layers to inject keys server-side when integrating client apps.

Are free APIs reliable for historical data needs?

Some free APIs provide robust historical endpoints, but completeness and retention policies differ. Validate by sampling known events and comparing across providers before depending on the dataset.

How can AI tools help when using free APIs?

AI tools can assist with data cleaning, anomaly detection, and feature extraction, making it easier to derive insight from limited free data. Always verify model outputs and maintain traceability to source calls.

What should I monitor after integrating a free API?

Track request volume, error rates (429/5xx), latency, and data staleness metrics. Set alerts for approaching throughput caps and automate graceful fallbacks to preserve user experience.

Is it legal to store and redistribute data from a free API?

Legal permissions depend on the provider’s terms. Some allow caching for display but prohibit redistribution or commercial resale. Always consult the API’s terms of service before storing or sharing data.

How do I plan for scale from a free tier?

Design with decoupled ingestion, caching, and multi-source redundancy so you can swap to paid tiers or alternative providers without significant refactoring.

Can multiple free APIs be combined?

Yes. Combining multiple sources improves resilience and data quality, but requires normalization, reconciliation logic, and latency-aware merging rules.

Disclaimer

This article is educational and informational only. It does not constitute financial, legal, or investment advice. Evaluate services and make decisions based on your own research and compliance requirements.

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What is a REST API?

REST (Representational State Transfer) is an architectural style for distributed systems. A REST API exposes resources—often represented as JSON or XML—using URLs and standard HTTP methods. REST is not a protocol but a set of constraints that favor statelessness, resource orientation, and a uniform interface.

Key benefits include simplicity, broad client support, and easy caching, which makes REST a default choice for many public and internal APIs. Use-case examples include content delivery, telemetry ingestion, authentication services, and integrations between backend services and AI models that require data access.

Core Principles & HTTP Methods

Understanding core REST principles helps you map business entities to API resources and choose appropriate operations:

  • Resources: Model nouns (e.g., /users, /orders) rather than actions.
  • Statelessness: Every request should contain all information to process it; avoid server-side session state.
  • Representation: Use consistent formats such as JSON:API or HAL for predictable payloads.
  • HTTP Verbs: GET for retrieval, POST to create, PUT/PATCH to update, DELETE to remove. Idempotency and safety semantics matter when designing retries and error handling.
  • Status Codes: Use standard HTTP status codes (200, 201, 204, 400, 401, 403, 404, 429, 500) to communicate outcomes clearly to clients.

Adhering to these constraints makes integrations easier, especially when connecting analytics, monitoring, or AI-driven agents that rely on predictable behavior and clear failure modes.

Design Patterns and Best Practices

Building a usable REST API involves choices beyond the basics. Consider these patterns and practices:

  • Versioning: Use URI (e.g., /v1/) or header-based versioning to avoid breaking clients when evolving schemas.
  • Pagination and Filtering: Support limit/offset or cursor-based pagination and flexible query filters to keep responses performant.
  • Hypermedia (HATEOAS): Optionally include links to related resources to improve discoverability for advanced clients.
  • Idempotency Keys: For non-idempotent operations, accept idempotency keys so retries don’t create duplicates.
  • Documentation and SDKs: Maintain OpenAPI/Swagger specs and generate client SDKs to reduce integration friction.

For teams building APIs that feed ML or AI pipelines, consistent schemas and semantic versioning are particularly important. They minimize downstream data drift and make model retraining and validation repeatable.

Security, Monitoring, and Scaling

Security and operational visibility are core to production APIs:

  • Authentication & Authorization: Use OAuth 2.0, JWTs, or API keys depending on risk profile. Apply least-privilege principles to tokens and scopes.
  • Transport Security: Enforce TLS for all traffic and HSTS where applicable.
  • Rate Limiting & Throttling: Protect against abuse and ensure fair usage. Return clear retry-after headers to guide clients.
  • Observability: Emit structured logs, request IDs, and metrics (latency, error rates) and hook them into dashboards and alerting systems.
  • Schema Validation: Validate payloads at the boundary to prevent invalid data from propagating into downstream services.

Scaling often combines stateless application design, caching (CDNs or reverse proxies), and horizontal autoscaling behind load balancers. For APIs used by data-hungry AI agents, consider async patterns (webhooks, message queues) to decouple long-running tasks from synchronous request flows.

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FAQs

What distinguishes REST from other API styles like GraphQL?

REST emphasizes resources and uses HTTP verbs and status codes. GraphQL exposes a flexible query language letting clients request only needed fields. REST is often simpler to cache and monitor, while GraphQL can reduce over-fetching for complex nested data. Choose based on client needs, caching, and complexity.

How should I version a REST API without breaking clients?

Common strategies include URI versioning (/v1/) and header-based versioning. Maintain backward compatibility whenever possible, provide deprecation notices, and publish migration guides. Semantic versioning of your API contract helps client teams plan upgrades.

What are practical steps to secure a public REST API?

Require TLS, use strong authentication (OAuth 2.0 or signed tokens), validate inputs, enforce rate limits, and monitor anomalous traffic. Regularly audit access controls and rotate secrets. Security posture should be part of the API lifecycle.

How can REST APIs support AI-driven workflows?

APIs can supply training data, feature stores, and live inference endpoints. Design predictable schemas, low-latency endpoints, and asynchronous jobs for heavy computations. Tooling and observability help detect data drift, which is critical for reliable AI systems. Platforms like Token Metrics illustrate how API-led data can support model-informed insights.

When should I use synchronous vs asynchronous API patterns?

Use synchronous APIs for short, fast operations with immediate results. For long-running tasks (batch processing, complex model inference), use asynchronous patterns: accept a request, return a job ID, and provide status endpoints or webhooks to report completion.

Disclaimer

This article is educational and technical in nature. It does not constitute investment, legal, or professional advice. Evaluate tools and architectures against your requirements and risks before deployment.

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