What is an NFT?
An NFT (Non-Fungible Token) is a digital asset that represents real-world objects like art, music, in-game items, and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.
Fungible vs. Non-Fungible
Physical money and cryptocurrencies are "fungible," meaning they can be traded or exchanged for one another. They are also equal in value—one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin. NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another.
Use Cases
- Digital Art: Providing proof of ownership for digital artists.
- Gaming: Ownership of in-game assets like skins or weapons.
- Real Estate: Tokenizing physical properties to streamline sales.
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