NFT(Non Fungible Token)

Non Fungible Token


NFT stands for non-fungible token, but what does that even mean? Before NFTs can be explained let us look at the definition of fungible. “Fungible” describes a good that can be easily swapped for another good within the same asset class. Fungible describes something that can be directly replaced or traded. For example, the Australian dollar, and Bitcoins are both fungible. You can swap a Bitcoin for another Bitcoin and you would still hold the same value as you had before. Non-fungible, on the other hand, describes a one-of-kind, unique good that cannot be readily exchanged for another good within the same asset class. Non- fungible tokens are also indivisible.

Fungible Vs Non-Fungible Tokens

Below is a table explaining the difference between Fungible and Non-Fungible Tokens.

Fungible tokens

  • Fungible tokens are identical. Tokens of the same type are similar.
  • Fungible tokens can be interchanged with another for the same value.
  • You can divide fungible assets into smaller amounts.
  • It does not matter which unit we use as long as it adds up to the same value

Non-Fungible Tokens

  • Non-Fungible Tokens are Unique. NFTs are different from one another.
  • Non-Fungible tokens cannot be exchanged with another token for the same value.
  • NFTs are non-divisible and not interchangeable

NFT Market

The NFT market has grown over 299% in 2020 for more than $250 million as a total transaction. Millions of users prefer this blockchain-based platform as it is more reliable and efficient since the value is soaring in the marketplace. Many companies worldwide are stepping forward to tokenize their own NFTs with the latest features initiated along with it.
These NFTs has gone viral after the launch made by celebrities like Elon Musk. NFTs are not new. The first NFT was launched in 2017 by Larva Labs. It was quickly followed by a project called Crypto Kitties, which raised millions of dollars.
More recently, digital artworks have sold for millions of dollars and even some famous internet tweets sold for higher amounts. In the past two years the NFT market cap has increased tenfold and topped the table with some insane values.
Many users are attracted to NFT marketplaces as they can now tokenize their games, art, and real-world assets to NFTs and earn more income. While significant money can be made on NFT marketplaces, the question is this just a short-term trend that is causing a hype and is it a sustainable model that will last the test of time? In this White Paper we examine the problems of NFTs and provide solutions in creating a sustainable NFT model and brand.
Last modified 1yr ago