Recently, I learned the difference between a fungible and non fungible token.
If something is fungible it means that it can be easily replaced, like a dollar bill, or in the U.K. a £1 coin. One can trade one pound coin for another and there wouldn’t be any difference as they hold the same value and are interchangeable. In the crypto world, this would be the equivalent to Bitcoin or Ethereum or other cryptocurrency. Easily tradable, interchangeable, with no difference in its value.
Something that is non fungible is completely unique, and cannot be replicated or reproduced, as even if it were to look the same it would hold a different value. Like a collectible trading card or even an airplane ticket.
Another important difference to note between fungible and non fungible tokens is that fungible ones can be divided, much like a £1 coin can be broken down and sold or traded in smaller amounts, like 1 penny, which is a 100th of a pound. However, NFTs cannot be divided and must be sold or traded as a whole. For example, you can’t sell or trade a fraction of a trading card.
In the crypto world, non fungible tokens (NFTs) are what we refer to as digital assets or collectibles, and the use of blockchain technology can ensure that counterfeiting or any other illicit activity can be avoided. Each token is completely unique from another, non replicable, nor replaceable, which creates scarcity. One of the earliest and most well known examples of its use would be CrytpoKitties, where the most expensive crytokitty reportedly sold for $120,000! A more recent example would be “Gods Unchained”, claiming to be blockchain’s first Esport, where ‘Hyperion’ (a Mythic Titan trading card) was auctioned for 146.27 ETH, approximately $60,000 - making it the second most valuable TCG card in the world, just behind Magic: The Gathering’s 25 year old ‘Alpha Black Lotus’. And by the way, there are still 2 Mythic Titan trading cards yet to be found (in case you're interested).
There are of course other projects utilising or enabling the use of NFTs, such as Steem Monsters, Ecomi, Gamedex, and Enjincoin (to name just a few).
NFTs can also be useful for other purposes beyond gaming and collectibles, like verifying one’s identity digitally, such as a digital passport, or for travel, like in the form of a digital plane ticket.
In a world that is becoming more and more digitised, with the likes of eSports and digital collectibles becoming increasingly popular, these NFTs are on the rise and are definitely something to have on your radar. Watch - this - space!
Here's my video on DLive (which can also be found on my YouTube channel, Rhode Block):
https://dlive.io/video/crypt0rhodes/c176f77c-ac3c-11e8-97f4-0242ac110003
Thanks for stopping by!
