Non-fungible tokens NFT are distinctive in nature and represent unique assets.

Non fungible token vs cryptocurrency. Non-fungible tokens use ERC-721 Ethereum Request for Comment as a standard to be followed while creating non-fungible tokens on the Ethereum platform. Lets directly compare a fungible token with an NFT using the following characteristics. However where crypto assets like ETH LTC LINK or any other crypto token can being traded publicly and on a global scale NFTs arent.

You cannot replace an NFT with another token. This peculiarity makes it perfect for them to be used as. Some tokens are fungible and others are not.

They are non-interchangeable unique and non-divisible. Thanks to Bitcoins epic year-end bull run cryptocurrencies are once again enjoying a moment in the sun. Non-fungible tokens exist to communicate varying values between different assets that exist within the same ecosystem.

Trading non-fungible tokens for one another works very well if youre trading something like sports memorabilia or other rare collectibles. If one person say has. ERC-721 tickets all have unique properties and data values.

Fungibility means that every unit of a given asset has the same value making them interchangeable and sometimes divisible. Home Business Guides How Non Fungible Tokens Are Connecting Cryptocurrency to the Real World. Basically the fungibility or interchangeability of a token depends on its use case.

Thats a mistake you must avoid. First lets make it clear from the very beginning that fungible tokens are synonymous with interchangeable. They burst into the mainstream with the sudden popularity of cryptokitties a virtual cat collectible game.