What is a Non-Fungible Token?Some examples of Non-Fungible Tokens
Non-Fungible Tokens mark the ownership of various items. Not only do they have a single owner but are secured by Ethereum Blockchain. (Blockchain is a system of recording information. Also, the advantage of NFT is it safeguards the owner’s property and makes it difficult to cheat the system). NFTs are used to safeguard assets such as real estate and artwork, they are also used in other industries. For instance, some other examples are Domain Names, Event Tickets, digital and non-digital collectables. NFT are similar to Bitcoin and requires ownership details for identification and transfer.
Difference between a Fungible and a Non-Fungible Token
There are marked differences between Non-Fungible Tokens and Fungible ones.
|S.No||Non-Fungible Token||Fungible Taken|
|1||Non-Fungible Token are not exchanged with any other token of the same type||Token are exchanged to any other token of same type|
|2||Token is unique||Each token is identical|
|3.||NFT can’t be divided.||Fungible Tokens can be divided into smaller units|
|4||ERC-20 Blockchain standard||ERC-721 Blockchain standard|
Benefits of NFT’s
Not only does one secure the asset ownership through NFTs, but one also can transfer it worldwide. Here are 6 benefits of Non-Fungible Tokens.
- Authenticity of Products
- Real Estate
- Intellectual Property and Patents
- Academic Credentials
- Supply chain
Future of NFT
There is no doubt that NFT technology is here to stay. For instance, consider the impact on the artwork.NFT is influencing artists’ workmanship and ownership. Besides the NFTs are used in multiple industries. The broad range of applications includes Food, Art and digital assets. Although the current hype of the NFT is high, whether is it momentary is yet to be found. There are mixed reviews. Some believe that NFTs are the thing of the future but others rule it off as an eyewash.
Also read: 7 best practices for the protection of cryptocurrency assets