What is a non-fungible token (NFT)?
Johnathan
Last Update 3 years ago
An NFT is a unique digital asset that represents ownership of a specific piece of digital content, such as an image, video, or audio file. Unlike fungible tokens like Bitcoin or Ethereum, which are interchangeable with one another, each NFT is one-of-a-kind and cannot be replicated or divided into smaller parts.
What is 'fungible'?
Fungibility means that goods or assets can be exchanged or substituted with others of the same kind and value without any difference in quality, characteristics, or value. They are interchangeable without any unique properties that distinguish one from the other, like how all dollar bills of the same denomination have the same value and can be exchanged for each other.
What is 'non-fungible'?
Non-fungible means something that is unique and cannot be interchanged with anything else, unlike fungible assets. Non-fungible items have properties that make them one-of-a-kind and distinguishable from each other.