What Is NFT And How Does It Works â A Detailed Guide
Fungible assets or fungibility denotes an item or an asset that has the ability to trade or get exchanged with a similar type of asset or good, whereas non-fungible assets tokens are unique digital assets whose ownership can be tracked on on NFT blockchain development like Ethereum.
Non-Fungible Tokens aka the NFTs are digital assets or a type of digital certificate for owning goods or an asset that represents a great variety of intangible and tangible items such as paintings, virtual real estate, postcards, videos, and so on. NFTs cannot be replicated or equated with an asset that is similar, because every non fungible tokens asset is unique on its own. You can read more about the development and cost of NFT marketplace here.
To make things more clear to you, let’s take an example of a game ticket. If you give someone a baseball game ticket, then obviously you would take the baseball game ticket. Right? If that someone returns you a movie ticket, will you accept it?
The answer: No, you will not, because a movie ticket will not be as equally valuable as a baseball game ticket. If we place this example in place of NFT, then the game ticket (which is an NFT) cannot be replaced or traded with any ticket, as every baseball game ticket has its own unique identity.
The same is the case with NFT, where you cannot just exchange or trade NFT tokens with similar value tokens, as each token is different from one another and has its own uniqueness and rarity.
Non-fungible Tokens Examples
Owning a digital collectible has its benefits over a physical collectible like a stamp or rare coin. Each NFT consists of distinguishable information that makes it unique from other NFTs and makes the verification of authenticity for a collectible easier.
Like, for an artist, it makes the circulation of fake collectibles useless because the original item can be easily traced back to its legal user. Also, in comparison to other NFT cryptocoins, you can’t exchange NFTs directly with anyone and the reason is the same – they’re all non-identical/dissimilar. For example, if you’ve got two NFCs on a single platform, they still won’t be the same despite being a part of the collection or having the same size and color. Let us see some examples of NFT Projects:
InvestorChums is a Limited Edition Collection of 30 Utility NFTs. You will become an investor in our MetaChums NFT by holding one of the Investor Chums NFT and be eligible to obtain the Benefits Click here to know more…https://opensea.io/collection/investor-chums
