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What is NFT and why do we experiment with it?
NFT is a recent phenomenon and is the next big thing after the ICO and DeFi waves. Let’s explain what NFT is and why it makes sense to be interested in them.
Fungible vs. Non-Fungible Tokens
NFT stands for Non-Fungible Tokens. Everyone probably knows what a token is. In the context of blockchain, a token is a digital asset that has value and can represent something. Tokens, like ADA coins, for example, can be held in your own wallet. People may struggle to understand the meaning of the word fungible. Fungibles are things that are exchangeable one for another. For example, tokenized dollars are fungible because you don’t care what dollar you hold specifically. All dollars have the same value, so their use-value is exactly the same. Dollars can easily be divided into smaller parts, as each part has its exact value. We know the value of $0.5 or $3.75.
Non-fungible tokens are tokens that are in some way unique or have a limited and usually smaller amount of pieces. Every single piece holds its own inherent value. Unlike fungible tokens, Non-fungible tokens are generally not divisible since it is difficult to understand what a fraction of one of them would mean.
A typical NFT might represent a piece of art. It can be a representation of physical art or purely digital art…
