What is a Non-Fungible Token or NFT?
NFT’s Is a ways of securing a digital artwork no one will forge, duplicate or replicate your hardworking creativity online, NFTs are trustworthy easily transferable and also maintain the ownership rights on an artist or the buyer of those artworks.
A non-fungible token is simply a representation of a unique digital asset that cannot be equally
Swapped or traded for another NFT of the same type. Therefore non-fungible tokens can represent digital art, digital properties you can own, accessories, and all kinds of things you can buy, own, and use in the virtual world.
NFTs turn your digital assets into one of a kind by creating a unique digital signature which defines the ownership of your assets and that can be bought and sold for real money as a form of digital currency or cryptocurrency or any other asset like a non-fungible token.
Non-fungible tokens means that they are not interchangeable and each of them represents unique assets owned by a specific person while a fungible tokens are interchangeable and can be divided into smaller units to form the same value.
For example a two hundred dollar $200 bill is fungible as you can exchange it with seven twenty dollar bills $720 or three fifty dollar bills $350. but in case of non-fungible assets, the painting of the last supper is non-fungible as it cannot be generated in bulk even if it is copied it will not be authentic each NFT contains distinguishable information like who owns the digital asset and who sold it making them distinct and easily verifiable as it is impossible to forge such a certificate it will secure the originality of the artwork the NFT basically creates a blockchain-based digital certificate for your digital collectibles including games music art and many more this certificate gives your artwork a unique identity the underlying technology and the programming language used by NFTs are the same as other popular cryptocurrencies such as blockchain and the programming language ETH or script NFT majorly exists on ethereum blockchain network, a distributed public ledger that records all the transactions .
However NFT is quite different from these cryptocurrencies bitcoin and ethereum which are fungible tokens means if you trade bitcoin or ethereum for one another you will have the same value or item in return. While for NFT is a unique token therefore if you try to trade it you may end up with something completely different in your hands.
OpenSea, crypto punks and others site enables you to buy, sell and store 10000 collectibles of NFTs with the proof of ownership being stored on the ethereum blockchain network as everyone was easily and able to buy the artwork without any fear of forgery, replication in NFT has proved itself to be a boon in the lives of many others.
popularity of NFT creates new opportunities for new art platforms motivating people to buy art from internet platforms and promoting copyright or originality of digital assets
What is an asset?
An Asset is a finance term means something useful or valuable. It can be something physical like gold, diamond, it can be something digital like bitcoin, it can be something abstract like expertise, and it can be anything that helps you generate income.
Difference Between Fungible Assets and Non-Fungible Assets
Fungible Assets
Fungibility describes an asset’s ability to be swapped with another asset of the same type. Therefore a fungible asset is something that is interchangeable.
For example, a $1000 dollar bill is fungible because, if I have a $1000 dollar bill, and
You also have a $1000 dollar bill, we could interchange the bills, or I give you mine and you give me yours, and the value doesn’t change. Clearly example is bitcoin and etherium are both fungible assets as well. One is no different than another either, as the value is equal.
Non-Fungible Assets
Non-fungible asset is something that is not interchangeable and not divisible for the most part.
For example, let’s say I have a car, and you have a car too, and we swapped the cars.
You can see how that transaction isn’t an equal swap of value. Even if we had the same exact type of car and they looked the same, each of the cars harbor their own unique personality, memories, and abilities. examples of non-fungible assets are houses, used cars, and Artwork etc.
Definition of Tokens
Tokens are representative of value like a stake, voting right, a toll, a currency, a store of value, it could represent ownership of something, or it could be multifunctional within an ecosystem.
The token doesn’t have value in and of itself, the value comes from the asset it represents. Like a gift card would be an example of a token. So the actual plastic card in and of itself isn’t valuable, but the card does represent value you can exchange for whatever terms are dictated by the gift card.
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