Today, I will try to explain NFTs in this short article. If you already know about NFTs, please give your valuable feedback to this article and if you don’t have any idea about NFTs, continue reading…
The full form of NFTs is Non-fungible tokens also known as crypto-collectibles.
Now before going into detail, we need to understand the difference between fungible and non-fungible otherwise you won’t able to under about NFTs.
Fungible goods and assets are interchangeable or replaceable. In simple words, any goods or assets that are interchangeable with the same type of goods or assets are fungible.
For example, Suppose you credited a $100 note into your bank account and a few weeks later you withdraw your money and you got two $50 note instead of your $100 note.
Now, does it matter if you have a $100 note or two $50 notes?
Absolutely not. It will be perfectly fine because paper currencies are fungible. It doesn’t matter you have a $100 note, two $50 notes, or ten $10 notes, The value of your two $50 notes is still $100.
Unlike Fungible, Non-Fungible assets are unique, irreplaceable, or non-interchangeable. Art, people, antiques are some examples of non-fungible.
For Example, You can buy an art piece by paying the money but you cannot exchange ‘X’ art piece with a ‘Y’ art piece because ‘X’ and ‘Y’ both art pieces are unique.
What is a non-fungible token (NFT)?
A non-fungible token (NFT) is a crypto token but it is not interchangeable with another token. NFTs are unique and you cannot break them into smaller bits.
For example, If you have 1 BTC, you can send .5 BTC to your friend but it’s not possible with NFTs. You cannot send .5 NFT to your friend and cannot keep .5 to your self. Also, If you want to send someone an NFT, Make sure to get back the same NFT because each NFTs are unique.
Now, This article has come to an end. I hope you found this article helpful. Please give your valuable feedback to this article so that I will be able to improve my writing skill.
I know this short article hasn’t explained everything about NFTs. So if you have any queries and questions you can reply to this topic or you can also visit this NFTs topic.