Non-Fungible Tokens Explained | What is an NFT?

An NFT is simply a non-fungible item, or as some say, a digital asset. It can be described as being unique, and thus carries with it more value than something fungible. Fungibility is the ability of one person's property to be interchangeable with another person's property. Let's put it simply.

A fungible is something, an item or product that can be exchanged for another item or commodity at the same price. For example, suppose you go to a store and buy a $50 product and give the shopkeeper $100. The shopkeeper will give you back $50, this time he can give you this money for $50 or five $10 or two $20 and one $10. It doesn't matter which side of the note you are on because you are getting it for $50 and its value is equal, this is the fungible object.

And the exact opposite of Fungible is Non-Fungible. Let's look at another example, suppose you bought a book from this year's book fair and there is an author's sign, you also took a picture of the book be when you bought the book.

A few days later a friend of yours started reading the book and he bought the same book from the store without giving it to you. The same writing and price inside the book, but it will not be the same as your previous book. Your book was special, and this is Non-Fungible. And this is the origin of NFT. NFT will give you a digital certificate of a product or item against a certain price that you own. No one will be able to copy your property even if they want to.

Cryptography is a method of making data secure by scrambling it through code so that only those who have access to special software (such as Bitcoin miners) can decrypt it. An NFT is an application of cryptography in areas where we don't want duplication in any way.

And in this system, your property records will be stored in the blockchain. No one will be able to modify that record even if they want to and you will be the sole proprietor of it till a certain time.

NFTs are not cryptocurrencies. Many cryptocurrency enthusiasts have been calling Ethereum-based tokens, such as RarePepe and CryptoKitties, cryptocurrencies. They are not.

Cryptocurrencies like Bitcoin run on blockchain technology and have their own distinct digital currency, but they do not use digital assets as part of their token model. Instead, they rely on cryptography in order to verify transactions. Non-fungible tokens (NFTs) operate in a similar way but with a broader range of uses and applications.

NFTs are non-fungible, meaning that each token is unique, while cryptocurrencies are created with fungibility as a fundamental characteristic.

Let's talk about types of NFT. There are many different types of non-fungible tokens (NFTs). Here are a few of them and how they work____

There are a number of ways to purchase NFT. You can use centralized exchanges (i.e. Coinbase/GDAX) or decentralized exchanges that operate on Ethereum’s blockchain (i.e. EtherDelta). Additionally, you can purchase NFT using MyEtherWallet, MetaMask, and similar wallets that support ERC-721 tokens directly by tokenizing your ETH.

We know, each NFT represents a distinct tradable asset, such as a deed to a house, an art piece, or even a virtual collectible like CryptoKitties. There are varying ways to do this depending on the tools you use, so use these following steps as general tips.

Here are some of the best NFT marketplaces right now____

So, Non-fungible tokens (NFTs) are a type of crypto token that have digitally verifiable scarcity because each token is unique. NFTs may represent assets like coins, loyalty points, and real estate; in some cases, they could represent fungible assets such as virtual items. Non-fungible tokens are also sometimes called unique tokens or collectibles.