What are NFTs?

Non-fungible tokens (NFTs) are unique, digital assets who’s ownership is secured and verified on the blockchain.

Non-Fungible Tokens, or NFTs, represent a unique digital item that lives on the blockchain. We can think of NFTs as new models of ownership on the internet.

Fungible vs Non-Fungible Tokens

In basic terminology, when a token or other type of asset is fungible it simply means that it is easily interchangeable. An example would be fiat (U.S. Dollar) and crypto currencies (ETH). A $5 bill has identical features and value to that of another $5 bill. Fungible assets serve as a medium of exchange and are essential for economies and marketplaces.
When a token is non-fungible its characteristics are unique and thus it isn’t easily interchangeable. An example would be a house. Each house has at least 1 unique trait that makes it different from one another. Whether it’s the location of where it was built or the material that was used to build it.
Last modified 2yr ago