Introduction
A fungible token is similar to a cryptocurrency, but it has one key difference: fungibility. This means that any single unit of the cryptocurrency can be traded for another unit without requiring any conversion or change in value. On the other hand, NFTs are unique tokens that do not have this property and thus are called non-fungible tokens (NFTs). NFTs have become increasingly popular as developers create innovative ways to use them
What is non-fungible token (NFT)?
Non-fungible token (NFT) is a digital token that is unique and can’t be replaced by another token.
It’s used to represent a unique asset. NFTs can be used for many different purposes, including collectible items and fungible tokens.
What are NFTs used for?
NFTs are used for digital collectibles, digital art and digital assets.
Digital collectibles. An NFT is a unique token with an embedded value that can be used to represent the item being represented. For example, if you have an NFT of a cat, it would allow you to buy/sell/trade this item on exchanges as well as use it in games like CryptoKitties or Spells of Genesis.
Digital art: Using blockchain technology we can create unique pieces of work that are limited editions and not produced in mass quantities (like paintings). This means that each artwork will have its own rarity level based on how many were made; this makes them very collectible due to their scarcity factor!
The most common type of NFT is an item in a game or app that you own. For example: if you play Fortnite and get your character’s skin as an item from Battle Royale at the end of the match, then this becomes part of your collection—and it’s considered “non-fungible” because all other skins are not considered to be interchangeable with yours.
A second type of NFT could be digital assets such as artworks or music recordings sold online through exchanges like ArtX or Music Xray; these types do not rely on proprietary software but instead exist purely in cyberspace (or even physical space).
Conclusion
NFTs hold a lot of potential, but they have yet to be widely adopted by the cryptocurrency community. With that said, there is a lot of momentum behind them right now and it will be interesting to see how things develop in coming years!
