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.

Build Smarter Crypto Apps &
AI Agents in Minutes, Not Months
Real-time prices, trading signals, and on-chain insights all from one powerful API.
Grab a Free API Key
Token Metrics Team
Token Metrics Team

Recent Posts

Research

API Endpoint Essentials: Design, Security & Tips

Token Metrics Team
5
MIN

APIs power modern software by exposing discrete access points called endpoints. Whether you re integrating a third-party data feed, building a microservice architecture, or wiring a WebSocket stream, understanding what an api endpoint is and how to design, secure, and monitor one is essential for robust systems.

What is an API endpoint and how it works

An api endpoint is a network-accessible URL or address that accepts requests and returns responses according to a protocol (usually HTTP/HTTPS or WebSocket). Conceptually, an endpoint maps a client intent to a server capability: retrieve a resource, submit data, or subscribe to updates. In a RESTful API, endpoints often follow noun-based paths (e.g., /users/123) combined with HTTP verbs (GET, POST, PUT, DELETE) to indicate the operation.

Key technical elements of an endpoint include:

  • URI pattern (path and optional query parameters)
  • Supported methods (verbs) and expected payloads
  • Authentication and authorization requirements
  • Response format and status codes
  • Rate limiting and throttling rules

Endpoints can be public (open to third parties) or private (internal to a service mesh). For crypto-focused data integrations, api endpoints may also expose streaming interfaces (WebSockets) or webhook callbacks for asynchronous events. For example, Token Metrics is an example of an analytics provider that exposes APIs for research workflows.

Types of endpoints and common protocols

Different application needs favor different endpoint types and protocols:

  • REST endpoints (HTTP/HTTPS): Simple, stateless, and cache-friendly, ideal for resource CRUD operations and broad compatibility.
  • GraphQL endpoints: A single endpoint that accepts queries allowing clients to request exactly the fields they need; reduces overfetching but requires careful schema design and complexity control.
  • WebSocket endpoints: Bidirectional, low-latency channels for streaming updates (market data, notifications). Useful when real-time throughput matters.
  • Webhook endpoints: Server-to-server callbacks where your service exposes a publicly accessible endpoint to receive event notifications from another system.

Choosing a protocol depends on consistency requirements, latency tolerance, and client diversity. Hybrid architectures often combine REST for configuration and GraphQL/WebSocket for dynamic data.

Design best practices for robust API endpoints

Good endpoint design improves developer experience and system resilience. Follow these practical practices:

  1. Clear and consistent naming: Use predictable URI patterns and resource-oriented paths. Avoid action-based endpoints like /getUserData in favor of /users/{id}.
  2. Versioning: Expose versioned endpoints (e.g., /v1/users) to avoid breaking changes for consumers.
  3. Input validation: Validate payloads early and return explicit error codes and messages to guide client correction.
  4. Pagination and filtering: For list-heavy endpoints, require pagination tokens or limits to protect backend resources.
  5. Documentation and examples: Provide schema samples, curl examples, and expected response bodies to accelerate integration.

API schema tools (OpenAPI/Swagger, AsyncAPI) let you define endpoints, types, and contracts programmatically, enabling automated client generation, testing, and mock servers during development.

Security, rate limits, and monitoring

Endpoints are primary attack surfaces. Security and observability are critical:

  • Authentication & Authorization: Prefer token-based schemes (OAuth2, JWT) with granular scopes. Enforce least privilege for each endpoint.
  • Transport security: Enforce TLS, HSTS, and secure ciphers to protect data in transit.
  • Rate limiting & quotas: Apply per-key and per-IP limits to mitigate abuse and preserve quality of service.
  • Input sanitization: Prevent injection attacks by whitelisting allowed fields and escaping inputs.
  • Observability: Emit structured logs, traces, and metrics per endpoint. Monitor latency percentiles, error rates, and traffic patterns to detect regressions early.

Operational tooling such as API gateways, service meshes, and managed API platforms provide built-in policy enforcement for security and rate limiting, reducing custom code complexity.

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

What is the difference between an api endpoint and an API?

An API is the overall contract and set of capabilities a service exposes; an api endpoint is a specific network address (URI) where one of those capabilities is accessible. Think of the API as the menu and endpoints as the individual dishes.

How should I secure a public api endpoint?

Use HTTPS only, require authenticated tokens with appropriate scopes, implement rate limits and IP reputation checks, and validate all input. Employ monitoring to detect anomalous traffic patterns and rotate credentials periodically.

When should I version my endpoints?

Introduce explicit versioning when you plan to make breaking changes to request/response formats or behavior. Semantic versioning in the path (e.g., /v1/) is common and avoids forcing clients to adapt unexpectedly.

What are effective rate-limiting strategies?

Combine per-key quotas, sliding-window or token-bucket algorithms, and burst allowances. Communicate limits via response headers and provide clear error codes and retry-after values so clients can back off gracefully.

Which metrics should I monitor for endpoints?

Track request rate (RPS), error rate (4xx/5xx), latency percentiles (p50, p95, p99), and active connections for streaming endpoints. Correlate with upstream/downstream service metrics to identify root causes.

When is GraphQL preferable to REST for endpoints?

Choose GraphQL when clients require flexible field selection and you want to reduce overfetching. Prefer REST for simple resource CRUD patterns and when caching intermediaries are important. Consider team familiarity and tooling ecosystem as well.

Disclaimer

The information in this article is technical and educational in nature. It is not financial, legal, or investment advice. Implementations should be validated in your environment and reviewed for security and compliance obligations specific to your organization.

Research

Understanding REST APIs: A Practical Guide

Token Metrics Team
5
MIN

Modern web and mobile apps exchange data constantly. At the center of that exchange is the REST API — a widely adopted architectural style that standardizes how clients and servers communicate over HTTP. Whether you are a developer, product manager, or researcher, understanding what a REST API is and how it works is essential for designing scalable systems and integrating services efficiently.

What is a REST API? Core principles

A REST API (Representational State Transfer Application Programming Interface) is a style for designing networked applications. It defines a set of constraints that, when followed, enable predictable, scalable, and loosely coupled interactions between clients (browsers, mobile apps, services) and servers. REST is not a protocol or standard; it is a set of architectural principles introduced by Roy Fielding in 2000.

Key principles include:

  • Statelessness: Each request from the client contains all information needed; the server does not store client session state between requests.
  • Resource orientation: Everything is modeled as a resource (users, orders, posts), each identified by a URI (Uniform Resource Identifier).
  • Uniform interface: A standard set of operations (typically HTTP methods) operate on resources in predictable ways.
  • Client-server separation: Clients and servers can evolve independently as long as the interface contract is maintained.
  • Cacheability: Responses can be labeled cacheable or non-cacheable to improve performance and scalability.

How REST APIs work: HTTP methods, status codes, and endpoints

A REST API organizes functionality around resources and uses standard HTTP verbs to manipulate them. Common conventions are:

  • GET — retrieve a resource or list of resources.
  • POST — create a new resource under a collection.
  • PUT — replace an existing resource or create if absent (idempotent).
  • PATCH — apply partial updates to a resource.
  • DELETE — remove a resource.

Responses use HTTP status codes to indicate result state (200 OK, 201 Created, 204 No Content, 400 Bad Request, 401 Unauthorized, 404 Not Found, 500 Internal Server Error). Payloads are typically JSON but can be XML or other formats. Endpoints are structured hierarchically, for example: /api/users to list users, /api/users/123 to operate on user with ID 123.

Design patterns and best practices for reliable APIs

Designing a robust REST API involves more than choosing verbs and URIs. Adopt patterns that make APIs understandable, maintainable, and secure:

  • Consistent naming: Use plural resource names (/products, /orders), and keep endpoints predictable.
  • Versioning: Expose versions (e.g., /v1/) to avoid breaking clients when changing the contract.
  • Pagination and filtering: For large collections, support parameters for page size, cursors, and search filters to avoid large responses.
  • Error handling: Return structured error responses with codes and human-readable messages to help client debugging.
  • Rate limiting and throttling: Protect backends by limiting request rates and providing informative headers.
  • Security: Use TLS, authenticate requests (OAuth, API keys), and apply authorization checks per resource.

Following these practices improves interoperability and reduces operational risk.

Use cases, tools, and how to test REST APIs

REST APIs are used across web services, microservices, mobile backends, IoT devices, and third-party integrations. Developers commonly use tools and practices to build and validate APIs:

  • API specifications: OpenAPI (formerly Swagger) describes endpoints, parameters, responses, and can be used to generate client/server code and documentation.
  • Testing tools: Postman, curl, and automated test frameworks (JUnit, pytest) validate behavior, performance, and regression checks.
  • Monitoring and observability: Logs, distributed tracing, and metrics (latency, error rates) help identify issues in production.
  • Client SDKs and code generation: Generate typed clients for multiple languages to reduce integration friction.

AI-driven platforms and analytics can speed research and debugging by surfacing usage patterns, anomalies, and integration opportunities. For example, Token Metrics can be used to analyze API-driven data feeds and incorporate on-chain signals into application decision layers without manual data wrangling.

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

FAQ: What is REST API — common questions

What is the difference between REST and RESTful?

"REST" refers to the architectural constraints described by Roy Fielding; "RESTful" is a colloquial adjective meaning an API that follows REST principles. Not all APIs labeled RESTful implement every REST constraint strictly.

How does REST compare to SOAP and GraphQL?

SOAP is a protocol with rigid standards and built-in operations (often used in enterprise systems). GraphQL exposes a single endpoint and lets clients request precise data shapes. REST uses multiple endpoints and standard HTTP verbs. Each approach has trade-offs in flexibility, caching, and tooling.

When should I version my REST API?

Version your API before making breaking changes to request/response formats or behavior that existing clients depend on. Common strategies include URI versioning (e.g., /v1/) or header-based versioning.

Are REST APIs secure by default?

No. Security must be designed in: use HTTPS/TLS, authenticate requests, validate input, apply authorization checks, and limit rate to reduce abuse. Treat REST APIs like any other public interface that requires protection.

How do I test and document a REST API effectively?

Use API specifications (OpenAPI) to auto-generate docs and client stubs. Combine manual testing tools like Postman with automated integration and contract tests in CI pipelines to ensure consistent behavior across releases.

Can REST APIs handle streaming or real-time data?

REST is request/response oriented and not ideal for continuous real-time streams. For streaming, consider WebSockets, Server-Sent Events (SSE), or specialized protocols; REST can still be used for control operations and fallbacks.

Disclaimer: This article is educational and technical in nature. It does not provide investment or legal advice. The information is intended to explain REST API concepts and best practices, not to recommend specific products or actions.

Research

FastAPI: Build High-Performance Python APIs

Token Metrics Team
4
MIN

FastAPI has become a go-to framework for teams that need production-ready, high-performance APIs in Python. It combines modern Python features, automatic type validation via pydantic, and ASGI-based async support to deliver low-latency endpoints. This post breaks down pragmatic patterns for building, testing, and scaling FastAPI services, with concrete guidance on performance tuning, deployment choices, and observability so you can design robust APIs for real-world workloads.

Overview: Why FastAPI and where it fits

FastAPI is an ASGI framework that emphasizes developer experience and runtime speed. It generates OpenAPI docs automatically, enforces request/response typing, and integrates cleanly with async workflows. Compare FastAPI to traditional WSGI stacks (Flask, Django sync endpoints): FastAPI excels when concurrency and I/O-bound tasks dominate, and when you want built-in validation and schema-driven design.

Use-case scenarios where FastAPI shines:

  • Low-latency microservices handling concurrent I/O (databases, HTTP calls, queues).
  • AI/ML inference endpoints that require fast request routing and input validation.
  • Public APIs where OpenAPI/Swagger documentation and typed schemas reduce integration friction.

Async patterns and performance considerations

FastAPI leverages async/await to let a single worker handle many concurrent requests when operations are I/O-bound. Key principles:

  1. Avoid blocking calls inside async endpoints. Use async database drivers (e.g., asyncpg, databases) or wrap blocking operations in threadpools when necessary.
  2. Choose the right server. uvicorn (with or without Gunicorn) is common: uvicorn for development and Gunicorn+uvicorn workers for production. Consider Hypercorn for HTTP/2 or advanced ASGI features.
  3. Benchmark realistic scenarios. Use tools like wrk, k6, or hey to simulate traffic patterns similar to production. Measure p95/p99 latency, not just average response time.

Performance tuning checklist:

  • Enable HTTP keep-alive and proper worker counts (CPU cores × factor depending on blocking).
  • Cache expensive results (Redis, in-memory caches) and use conditional responses to reduce payloads.
  • Use streaming responses for large payloads to minimize memory spikes.

Design patterns: validation, dependency injection, and background tasks

FastAPI's dependency injection and pydantic models enable clear separation of concerns. Recommended practices:

  • Model-driven APIs: Define request and response schemas with pydantic. This enforces consistent validation and enables automatic docs.
  • Modular dependencies: Use dependency injection for DB sessions, auth, and feature flags to keep endpoints thin and testable.
  • Background processing: Use FastAPI BackgroundTasks or an external queue (Celery, RQ, or asyncio-based workers) for long-running jobs—avoid blocking the request lifecycle.

Scenario analysis: for CPU-bound workloads (e.g., heavy data processing), prefer external workers or serverless functions. For high-concurrency I/O-bound workloads, carefully tuned async endpoints perform best.

Deployment, scaling, and operational concerns

Deploying FastAPI requires choices around containers, orchestration, and observability:

  • Containerization: Create minimal Docker images (slim Python base, multi-stage builds) and expose an ASGI server like uvicorn with optimized worker settings.
  • Scaling: Horizontal scaling with Kubernetes or ECS works well. Use readiness/liveness probes and autoscaling based on p95 latency or CPU/memory metrics.
  • Security & rate limiting: Implement authentication at the edge (API gateway) and enforce rate limits (Redis-backed) to protect services. Validate inputs strictly with pydantic to avoid malformed requests.
  • Observability: Instrument metrics (Prometheus), distributed tracing (OpenTelemetry), and structured logs to diagnose latency spikes and error patterns.

CI/CD tips: include a test matrix for schema validation, contract tests against OpenAPI, and canary deploys for backward-incompatible changes.

Build Smarter Crypto Apps & AI Agents with Token Metrics

Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key

FAQ: What is FastAPI and how is it different?

FastAPI is a modern, ASGI-based Python framework focused on speed and developer productivity. It differs from traditional frameworks by using type hints for validation, supporting async endpoints natively, and automatically generating OpenAPI documentation.

FAQ: When should I use async endpoints versus sync?

Prefer async endpoints for I/O-bound operations like network calls or async DB drivers. If your code is CPU-bound, spawning background workers or using synchronous workers with more processes may be better to avoid blocking the event loop.

FAQ: How many workers or instances should I run?

There is no one-size-fits-all. Start with CPU core count as a baseline and adjust based on latency and throughput measurements. For async I/O-bound workloads, fewer workers with higher concurrency can be more efficient; for blocking workloads, increase worker count or externalize tasks.

FAQ: What are key security practices for FastAPI?

Enforce strong input validation with pydantic, use HTTPS, validate and sanitize user data, implement authentication and authorization (OAuth2, JWT), and apply rate limiting and request size limits at the gateway.

FAQ: How do I test FastAPI apps effectively?

Use TestClient from FastAPI for unit and integration tests, mock external dependencies, write contract tests against OpenAPI schemas, and include load tests in CI to catch performance regressions early.

Disclaimer

This article is for educational purposes only. It provides technical and operational guidance for building APIs with FastAPI and does not constitute professional or financial advice.

Choose from Platinum, Gold, and Silver packages
Reach with 25–30% open rates and 0.5–1% CTR
Craft your own custom ad—from banners to tailored copy
Perfect for Crypto Exchanges, SaaS Tools, DeFi, and AI Products