NFTs - Non Fungible Token
What is a Non Fungible Token?
To grasp the concept more easy, we need to understand the exact opposite first, Fungibility.
Being fungible is a core characteristic of any crypto or fiat currency.
When a token is fungible it usually states two main characteristics:
The only thing that matters is the quantity.
My fungible tokens and your fungible tokens are indistinguishable, and each one of them is worth exactly the same than the others. We could swap the same amount with no change of value at all.
You can merge any amount of a fungible token into a larger amount without being able to tell them apart.
Obvious examples from the real world are Fiat currencies like the dollar, euro, yen and others.
1. My Yen is the same as yours…interchanging the same amount between us doesnt change a thing.
2. You can sure give me your Dollar and then I have two dollars in total.
OK now, why am I boring you with all this?
Because by definition anything that does not have these two characteristics, is non fungible.
Take for instance Baseball Collectable Cards:
1. They are all unique
2. If i merge them with other cards they will be still a difference between them.
🤯 booOOOOM there you have it, easy…..right?
The same principle is used for blockchain assets like your Epic Battle Axe from Knightlands, you just minted on the blockchain and converted into a full fledged NFT.
Your Epic Battle Axe…
1. … will be unique and distinguishable
2. …and you always know which NFT is your Battle Axe, even if you put them with other items in your wallet together.
A Non Fungible Token, unique and traceable on the blockchain.