NFT marketplaces are just some of Ethereums dApps.

What nft tokens are there. NFT stands for non-fungible token but they arent actually physical coins. An NFT can be anything that you can think of drawings animation music videos even virtual in-game items. Most things in this world have some amount of fungibility any item good or currency that is interchangeable.

Its not a cryptocurrency like Bitcoin or Ethereum because those are fungible and. A Non-Fungible Token NFT is is not interchangeable with another asset of the same type. However NFTs are basically or opposite since they are unique tokens ie non-fungible tokens.

NFT tokens are often based on the Ethereum blockchain but levels of congestion seen on this network have meant digital assets have started to be created on rival platforms. On the contract tokens such as BAT or ETH are ERC20 tokens. It draws its value from the asset that it represents.

You cant create a non-fungible token with an ERC-20 token because of its fungible specification. Some of them use ERC-1155 in Ethereum that has few differences from ERC-721. With money you can swap a 10 note for two 5 notes and.

With normal crypto tokens there is no way to distinguish between one token and another thus normal tokens are fungible one is equal to. Although there are other programmable blockchains that offer smart contracts such as Wexchain most NFT marketplaces are still hosted on Ethereums blockchain. Unlike in Decentraland however My Neighbor Alice has dedicated NFT tokens for various in-game items such as furniture animals and buildings.

Some notable NFTs are the 1st tweet by Jack Dorsey 50-second video by Grimes and uniquely generated characters Cryptopunks Jack Dorseys 1st Tweet. The token itself has no value. The blockchain a technology behind NFT provides cryptographic proof that the item is unique and that the owner is non-transferable.