Why are NFTs Special

As you probably already know, NFT stands for non-fungible token. In economic terms, a fungible asset is something with units that can be readily exchanged like money. A non-fungible token is a unit of data on a digital created by Blockchain. It can be any digital file such as art, audio, videos, items in video games and other forms of creative work but is unique. For example, with money, you can swap a $10 bill for two $5 bills and it will have the same value. However, if something is non-fungible, it is unique. It as one-of-kind properties so it cannot be replaced with something else. For example the painting such of Mona Lisa, which is one of a kind. You can easily take a photo of the painting or buy a print but there will only ever be the one original painting. NFTs are “one-of-a-kind” assets in the digital world, but they have no tangible form of their own. The digital tokens can be thought of as certificates of ownership for virtual or physical assets. In other words, the owner has of an NFT is the owner of that digital file. Still confusing isn’t it?

Sketch #285 of 365

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