A Brief Guide For Non-fungible Tokens

If you’ve been on the cryptocurrency world for quite a while now then you’ve likely heard the term “NFT” or “Non-fungible token” and perhaps you still don’t know what it is all about then patience please, I’ll try to make it as quick as possible.

Fungible — It applies to real-world assets as well as digital ones. The ability to replace a five-dollar bill with another five-dollar bill (or five ones, for that matter) is what makes currency fungible.

Non-Fungible — Domain names, event tickets, in-game items, even handles on social networks like Twitter or Facebook, are all non-fungible digital assets; they just vary in their tradeability, liquidity, and interoperability.

Standards are part of what makes non-fungible tokens powerful. They give developers the guarantee that assets will behave in a specific way and describe exactly how to interact with the basic functionality of the assets. One example of this is the CryptoKitties which is an ERC721, another example of NFT is Dego which is gaining a lot of attention just recently, it offers a modular design that refers to the combination of different elements of a product to form a subsystem with specific functions.

If that didn’t quite answer your questions then you might as well get a different explanation from this article about Non-fungible tokens: https://cointelegraph.com/magazine/nonfungible-tokens/#what-can-a-nft-represent