It is not easy for them to be created and therefore they are rare and have a scarcity factor which increases their value even more.

Examples of non fungible token. Every CryptoKitty is unique and no two CryptoKitties are the same. A digital kitty was sold for up to USD 120000 on CryptoKitties by following this principle. A non fungible token cannot be replaced with any other token because of its speciality and rarity.

Example Domain name art movies mobile numbers. Each Cryptokitty is unique which means they are often sold for large sums of money. These are unique assets.

So the elemental unit is the token itself as a whole. For example two paintings may look similar but they may have different levels of rarity. NFT stands for non-fungible token.

NFTs can be tokens that represent digital art houseproperty or precious gems like diamonds. These are impracticable to break a CryptoKitty into smaller pieces trade them and reassemble them to create an equally valuable CryptoKitty unlike fungible assets like Bitcoin. Similarly front row tickets of theatre are much more valuable than tickets for the back row.

This enabled users to sell buy and store 10000 unique collectible characters with the proof of ownership being stored on the Ethereum Blockchain. The first example of Non-Fungible Tokens was through a project called CRYPTOPUNKS. Non Fungible Token is the best example of how a token can be used to create scarcity which results in the creation of value for that token.

Non-fungible is an economic term that you could use to describe things like your furniture a song file or your computer. A non-fungible tokens USP lies in not being equal to another non-fungible token. Since launching in June.