Just like in the real world no two assets can exhibit similar characteristics or value similarly each tokenized asset on the blockchain has unique characteristics.

How to use non fungible tokens. Since these digital assets are distinguishable from each other they are not interchangeable and so are referred to as non-fungible tokens. For example ETH or dollars are fungible. These are used to provide the players with prizes for the games they win.

In other words each NFT has a unique identifier that makes it distinct from all other NFTs. The record of their existence lives on blockchains they can be bought and sold using cryptocurrency and there isnt necessarily a. The NFT can be imagined as if a piece of expensive diamond jewelry is kept in a box and placed in a very crowded area where the chances of burglary are fairly high.

Non-fungible tokens NFTs are a specific type of digital asset where each token is individualized. A digital kitty was sold for up to USD 120000 on CryptoKitties by following this principle. Since NFTs are underpinned by blockchain they are secure and immutable which means that their data cannot be changed.

These things are not interchangeable for other items because they have unique properties. Although Non-Fungible Tokens were created to securely store transaction data or transfer data of all kinds there is still a great need to protect. The concept is a bit more complex than that.

Non-fungible tokens can be used to create verifiable digital scarcity. Tokenizing assets can make that holog. Step 3 Set up Your Opensea Account.

The best case is CryptoKitties which I will discuss in detail in the next few paragraphs. 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. If youre scratching your head no worries so were we.