This type of Token is perfect to be used on platforms that offer collectible items access keys lottery tickets numbered seats for concerts and sports matches etc.

Ethereum token standard provides non-fungible feature. ERC-721 was the first standard for representing non-fungible digital assets on the Ethereum blockchain. Dont forget to subscribe. Common non-fungible token standards are ERC721 and ERC1155.

By contrast most Ethereum-based fungible tokens are based on the ERC20 standard. ERC-721 is an inheritable Solidity smart contract standard meaning that developers can create new ERC-721-compliant contracts by importing it from the OpenZeppelin library. It has some limitations eg.

While they each offer much the same functionality like owning or transferring tokens when dealing with non-fungible assets the smart contract takes care of ensuring that the rightful owner holds on to the specific token not just the same. This brings us to the second feature of NFTs. A standard interface for non-fungible tokens.

In the case of the ERC-20 or 223 we have a stock of fungible tokens where one unit is equivalent to another. NFTs are generally the tokenized representations of digital as well as real-world assets. Ethereum is a global decentralized platform for money and new kinds of applications.

So NFTs have excellent prospects. Fungibility is a characteristic of a good or commodity whose individual units are. In comparison the blueprint for fungible tokens is ERC20.

It is also developing a non-fungible tokens module. NFTs also provide a clear trail of ownership of assets. In order to create non-fungible tokens special standards had to be created.