Lets first talk about fungible items before we go into the intricacies of NFT.

Non fungible token how does it work. If you and I swap one-dollar bills neither of us is better or worse off. Each token represents a specific asset from. But non-fungible tokens are very different from currency.

Its generally built using the same kind of programming as cryptocurrency like Bitcoin or Ethereum but. NFT stands for non-fungible token. Its worth noting that NFTs can be used in many ways by.

So conversely if an asset is non-fungible this means it has unique properties that cannot be interchanged. Fungible refers to things that can be interchanged without gain or loss. Non-fungible indicates something that cannot be interchanged with something else like Botticellis Birth of Venus say.

Non-Fungible tokens or NFT crypto tokens are cryptography-based tokens that exist on a blockchain and possess unique and unrepeatable characteristics. Bound up in the blockchain hackers cannot alter this. Today non fungible tokens are in a manner of speaking one-of-a-kind trading cards.

This data verifies the digital item you hold is the bona fide original. When Christies auctioned off an NFT for more than 69 million in March it propelled the concept squarely into the public. In the world of decentralized applications DApps they can be used to generate unique digital elements.

What is an NFT token and how does it work. To begin with non-fungible simply states that one item cannot be exchanged for another. The NFT is a smart contract on the blockchain which allows users to purchase these tokens.