What is a Non-Fungible Token (NFT)?
Last updated
Last updated
Non-Fungible Tokens (NFTs) are unique digital items with blockchain-managed ownership. There are many kinds and applications of NFTs - but before we dive into the details, let's learn about a key term: fungibility.
If something is fungible, it is easily exchanged with something of equal value. Don't get overwhelmed by the idea of fungibility; it's just the ability of a good or item to be interchanged with other individual goods or items of the same type.
A simple comparison of fungible, semi-fungible, and non-fungible items is pictured below.
Fungible items like a dollar bill, gold - even cryptocurrencies like Bitcoin and Ethereum - can be substituted with one another without losing value. They are fungible.
If something is non-fungible, it means that it cannot be replaced. It represents something unique in value - and that's what an NFT is!
The token part of Non-Fungible Token refers to a digital certificate stored on a publicly verifiable distributed database, also known as a blockchain.
The information on this digital certificate, also known as a smart contract, makes each NFT unique. No two NFTs can be swapped, and this makes them non-fungible. Examples of NFTs include digital art, collectibles, virtual reality items, crypto domain names, ownership records for physical items, and more!
There is only one type of NFT currently supported on NumisArt.
1/1 NFTs - known as BEP-721 tokens
1/1 NFTs, known by their token standard as BEP-721 on BSC, are the classic definition of Non-Fungible Token's that we've described above. Each NFT is unique and distinct from other NFTs.
