What is NFT?

Are you curious about today’s topic? Without diverting your mind, let’s get down to the point. Do you frequently come across the term NFT? It’s just a three-letter word that had a massive impact on the blockchain world.

The acronym NFT stands for Non-Fungible Token. Tokens can be divided into two categories. Tokens that are fungible and non-fungible.

Let me explain those in a simple way😇. Just imagine that you and your friend are going to the drawing class and you forgot to bring your pencil. So you borrow a pencil from your friend and use it for the entire day. So You are buying a new pencil and giving that to him. Your friend now has a pencil in his hand, but it is not the one he gave you. However, the pencils have the same value. In this case, the pencil is a fungible token.

Let me give you another scenario. Your friend asked you to bring him to a movie. So you bought two movie tickets. But, unfortunately, he had other plans and advised you to find another person to accompany you to the movie. So you’ve invited your sister to the movie. This movie ticket serves as a fungible token in this situation. It’s replaceable, and its worth remains constant in every situation.

Ok, now we can discuss non-fungible tokens. You are going to write your final exam. You forgot to bring your ID card. So you are borrowing your friend’s ID card to write the exam. Wait, What?🙄. Is that possible? No. So here, the ID card is acting like a Non-fungible token. Everyone has an ID card, but their values are not the same. You are the owner of your ID card. Non-fungible tokens are Irreplaceable.

The non-fungible token is a cryptographically assigned and proven unique identifier for digital products.

I hope that everyone has a clear idea of NFTs. Keep an eye on my blog for more fascinating topics. Have a wonderful day.😊