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Non-Fungible Token (NFT)

What Is a Non-Fungible Token (NFT)?

Non-fungible tokens or NFTs are cryptographic assets on blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.



WHAT YOU NEED TO KNOW

  • NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.

  • NFTs can be used to represent real-world items like artwork and real-estate.

  • "Tokeninzing" these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.

  • NFTs can also be used to represent peoples identities, property rights, and more.

Understanding NFTs

Like physical money, cryptocurrencies are fungible i.e., they can be traded or exchanged, one for another. For example, one Bitcoin is always equal in value to another Bitcoin. Similarly, a single unit of Ether is always equal to another unit. This fungibility characteristic make