Learn With Lini

👉 What are non-fungible tokens or NFTs? We have been hearing about NFTs in the past few years.

Here is a brief and simple explanation of the difference between fungible and non-fungible tokens.

- Non-fungible tokens are crypto-assets on the blockchain and each is unique. No two non-fungible tokens are exactly the same. They have individual qualities.

- Each NFT would have a unique identifier that’s trackable on the blockchain and there could be multiple copies of the same one.

- On the blockchain, you will be able to know exactly where the token has been purchased from, at what price, which wallets it has moved through or been traded.

- Because everything is on the blockchain, it’s 100% trackable and public. In most cases, the transactions are immediate.

- Through the blockchain, creators can almost immediately verify the transactions.

- A fungible token, on the other hand, is something that has no unique value.

- For example, when you pay cash or use a credit card at a store, the cashier doesn’t choose which dollar bill or credit card you use from your wallet.

- All dollar bills or credit cards are essentially the same and equally good, with no unique qualities among them.

- A fungible token is also something that is difficult to trace.

- Are bitcoins different from NFTs?

- Bitcoins are cryptocurrencies designed to operate as currencies. Hence they are fungible, as any two bitcoins are similar and thus interchangeable.

For most people, the world of crypto and NFTs are still an alien world. It is still debatable what the future of NFTs is, and how safe is it to deal with it.

Let's just first understand what NFTs are.



Note: Check out https://www.socialmediaexaminer.com/crypto-and-the-future-of-business-a-primer/