What Is Fungible Tokens?
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Non-fungible tokens, often referred to as NFTs, are blockchain-based tokens, each representing a unique asset such as a work of art, digital content, or media. A non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital element and is therefore not fungible. NFTs, which stands for Non-Fungible Tokens, are unique or individual digital assets that cannot be replaced. For crypto collectibles, such as CryptoKitties collectibles, non-fungible tokens can be used for digital assets that need to be distinguished from one another in order to prove their value or rarity. Show Source Texts
Non-Fungible Tokens (NFTs) are unique blockchain-based digital assets that represent tangible and intangible objects, from virtual kittens and digital trading cards to cryptocurrencies and in-game items. In short, non-fungible tokens transform digital artwork and other collectibles into unique and verifiable assets that are easily traded on the blockchain. Until recently, in the digital world, one copy was indistinguishable from another, reducing its value, but the advent of blockchain and non-fungible tokens (NFTs) has changed that, allowing purchases to be considered original digital works are possible. Non-fungible tokens, also known as NFTs, cannot be replicated or equivalent to similar assets because each NFT asset is unique in itself. Show Source Texts
NFTs, on the other hand, are unique and not interchangeable, which means that no two NFTs are the same. NFTs are a single unit and cannot be divided into multiple units. NFTs have proven to be more useful given that they have a unique value proposition and are not shared. NFTs have different properties and cannot be edited with other assets. Show Source Texts
Each NFT is a separate underlying asset and therefore has a different value. NFTs are representations of digital assets similar to digital passports in that each token contains a unique, non-transferable identifier to distinguish it from other tokens. While digital files, such as the artwork itself, can be played indefinitely, the NFTs representing them are tracked on their underlying blockchain and provide buyers with proof of ownership. Fungible assets or fungible refers to objects or assets that can be traded or exchanged for similar types of assets or assets, while non-fungible token assets are unique digital assets whose ownership can be tracked in blockchain development such as Ethereum. Show Source Texts
All of the above used a brand new Ethereum standard for identifying unique assets on its blockchain: ERC-721, better known as the solution for creating and transferring non-fungible tokens. One of the keys to certify the four main characteristics and facilitate the interoperability of non-fungible tokens across multiple platforms are the various existing standards, the most commonly used being Ethereum ERC-721 and the most recent ERC-1155. Show Source Texts
Cited Sources
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