What Are Non-Fungible Tokens And What Do They Do?...

blockspoint.com | 2019-03-18 10:41 UTC

Initially, the term “cryptocurrency” could be understood literally as it meant any cryptographically protected digital currency — electronic money with the same functionality as fiat. But not all modern cryptocurrencies have the same set of properties as physical ones, and besides, there are digital assets called tokens that have a completely different purpose. We have already talked about the types and features of tokens used in ICO campaigns. Today we'll discuss tokens that make up the modern gaming industry. These are non-fungible tokens (NFT), which are fundamentally different from cryptocurrencies by their nature.

One of fundamental properties of money is interchangeability. If you’re going to make a purchase worth $5, it doesn't matter what denomination the bill you give to the seller will be — only the purchase amount matters. Likewise with bitcoins: they are all equal, so you don't have to choose any particular coin to complete a transaction. But things are different when it comes to non-fungible tokens. The exchange of one NFT for another has a lot to do with barter. Such a property is dictated by their main function, which is the tokenization of things that cannot be divided into equal parts.

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By blockspoint on 2019-03-18 10:41 UTC, Edited: 2019-03-18 10:45 UTC
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