NFts[Non-Fungible Tokens] || What are NFts? By @katiewest || Club5050

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Greetings to everyone in this community. It's my second content in this community and here is my Achievement 1 post link so that I can be verified in this community. What are NFts one may ask? Are they cartoon characters or are they just figures or expressions in open sea or trust wallet?

What do you know about NFts? At first when I heard of it, I was kind of awestruck as it was going viral. I was hearing things like create an Nft art and become a multi millionaire. It's now I came to understand the meaning of NFts and its outstanding differences with other tokens.

What are NFts

NFts as the acronym implies means
Non-Fungible Token. In what way? Nfts are digital assets in the sense that they can only be purchased and sold on a blockchain and are not accessible physically but on digital services.

It can also be defined as digital assets represented by a token which is registered in a crypto blockchain network ensuring ownership of the token itself. NFts can be

• Artwork
• Tweets
• Game characters
• Videos and even
• Music....

Many sometimes get awestruck or even mistake NFts and cryptocurrency. Unlike many cryptocurrency and physical currencies which are fungible or interchangeable, NFts aren't fungible as the name implies.

So an Nft can be exchanged for another Nft because of its uniqueness as regards digital signature which makes it very impossible for two Nfts to be equal. NFts are held on blockchains especially Ethereum Blockchain..

Examples of Fungible tokens and why they are fungible tokens.

• Dollars
• Bitcoin
• Ethereum
  The above are fungible tokens because they aren't unique as NFts and they can be traded or exchanged for another.

Differences between NFts and other cryptocurrencies

NFts	Others cryptocurrencies
Non- fungible tokens with unique digital signature	Fungible tokens that can be exchanged and traded on.
It has values beyond economics	it has only economic value
They aren't mutually interchangeable	They are interchangeable and can be traded for another.

Are fungible tokens and Non-Fungible Tokens same or are there differences?

Fungible	Non-Fungible
They are very much divisible as they can be divided, shared or spent	They aren't divisible
They are not unique	Each are very unique
Examples are BTC, USDT etc	Examples are games, Artwork and the likes.
Most cryptocurrency own a blockchain like Ethereum is a blockchain on its own	NFts are built on a blockchain and cannot do without crypto
They store value and can be traded	They store data and can't be traded for another.

Nfts have a popular market place called Open sea where these unique NFts can be purchased.
Open sea

Note: It is very possible to have an Nft stolen although it is built on a blockchain and blockchains are very secured and cannot be hacked. Just as other crypto coins can be stolen from digital wallets or while performing transactions, it can also be stolen.

Conclusively, on my next post we'll discuss how NFts can be invested or bought, how to create an Nft and how NFts are used in Art, video games and the likes.

Written by @katiewest

Cc,
@fredquantum
@kuoba01
@ngoenyi