what is the point of nft
Non-Fungible Token is a new technology which is used to create unique assets in the crypto-space. After reading this article, you will have a better understanding of what they are, how they function and why a lot of people are excited about them.
A non-fungible token (NFT) is an immutable piece of data that represents an economic digital asset. As opposed to fungible tokens which can be traded for any other given token in the market supply, NFTs are unique assets that cannot be mixed with other given assets within the same supply chain or ecosystem.
"Non-fungible tokens are a way of representing unique items in a digital medium. Tokens such as these can't be duplicated or replicated, and they majorly improve the enjoyment of its user." Non-fungible tokens are different from the fungible ones in that they are unique.
They are either rare enough or have some other characteristic that is difficult to replicate, which gives them a special value.For instance, the first time someone draws a card out of their deck of cards, it is the only one like it in the world. That's why these non-fungible tokens often represent something else—real-world assets like shares of stock or collectibles like comic books and baseball cards.
They can also be used as an account for managing ownership of digital items on blockchain networks that require you to purchase your game with Ethereum instead of credits or gold coins. Tokens are easy to understand. A token can represent anything, such as a plastic toy, a book, or even voting rights.
But fungible tokens - that is ones that can be traded directly for other fungibles - don't offer much more than this. Non-fungible tokens are different because they cannot be traded with each other without some external help and value emerges from their uniqueness and rarity. To date there has never been an example of a non-fungible token in use outside of the world's most popular digital asset: Bitcoin.
Non-fungible token is one of the leading new emerging cryptoassets defined by it's unique properties and digital scarcity. Token exchanges have a wide variety of non-fungible tradable assets, like Red Riding Hood's cape or a limited edition Louis Vuitton handbag.
This article will take you through the world of non-fungible tokens, from what they are all about to how to trade them, and why it is worth investing. Let's first start with what non-fungible tokens actually are: Non fungibles represent something like a house. It is one thing and one thing only (a house), and it cannot be broken down into smaller parts or split up. The value, utility, and purpose of said token comes from its uniqueness; there is no other like it.
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