What does 'non fungible' mean in the context of cryptocurrency?

3 answers

• May 02, 2022 · 3 years ago
  Non fungible, in the context of cryptocurrency, refers to a type of digital asset that is unique and cannot be exchanged on a one-to-one basis with another asset. Unlike fungible tokens, which are identical and interchangeable, non fungible tokens (NFTs) have distinct characteristics and properties. NFTs are often used to represent ownership or proof of authenticity for digital collectibles, art, virtual real estate, and other unique digital assets. For example, CryptoKitties is a popular NFT project where each digital cat is unique and cannot be replicated or replaced by another cat.
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• May 02, 2022 · 3 years ago
  So, 'non fungible' basically means that each token or asset is one-of-a-kind and cannot be replaced by another token. It's like comparing a rare piece of artwork to a dollar bill. You can't just swap one artwork for another because they have different values and characteristics. The same goes for non fungible tokens in the crypto world. Each NFT has its own value and uniqueness, making it special and irreplaceable.
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• May 02, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that non fungible tokens (NFTs) are a type of digital asset that represent ownership or proof of authenticity for unique items in the digital world. These items can range from digital art and collectibles to virtual real estate and even virtual pets. NFTs have gained popularity due to their ability to provide verifiable ownership and scarcity in the digital realm. They are often bought, sold, and traded on various NFT marketplaces, allowing collectors and enthusiasts to own and showcase their unique digital assets.
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