So I’m going to describe an NFT in the most basic terms. NFT stands for non-fungible token.
What is Fungible?
Fungible means something can be exchanged or substituted and will hold the same value. It is interchangeable like the rupee, dollar, gold, casino chips, bitcoin, or Ethereum.
If I lend you $10 cash and you return to me, two $5 banknotes.
I will be okay with that because even though they are different, they hold the same total value. They’re fungible.
What is Non-Fungible?
So non-fungible means it’s an asset that can’t be substituted.
It has unique attributes that make it different from something else in the same asset class like a painting, a theater ticket, a house, a video game skin, or a trademark.
Or Crypto Kitty: which was the first real use case to take off on the Ethereum blockchain, in 2017.
Some of these assets are physical and tangible and others are digital and intangible. So Nfts are non-fungible tokens.
Physical & Fungible: Rupee, Dollar, Gold, Casino Chips.
Digital & Fungible: Ethereum, Bitcoin
Physical & Non-Fungible: Painting, Theater Ticket, House
Digital & Non-Fungible: Video Game Skin, Trade Mark, Crypto Kitty
What is a Token?
Tokens refer to a digital certificate stored on a secure distributed database called a blockchain, so nfts are digital assets. Publicly verifiable intellectual property authenticated on a blockchain. A popular place to currently browse a variety of nfts is opensea.io
It’s an exciting space. I believe the nft space will continue to grow in the coming years, with some popular use cases being digital art, virtual land, gaming, collectibles, finance, and much more.
I hope you’ve enjoyed reading this article. If you want to know more about the coins, tokens, crypto trends check out the upcoming article here.
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