What Is a Non-Fungible Token? A Beginner's Guide

   Non-fungible tokens (NFTs) are changing the way we own things digitally. Here's an introduction to what they are, and why they matter.

The non-fungible token has garnered significant attention as one of the most exciting, transformative innovations blockchain has to offer developers and businesses.

But what exactly is an NFT?

What makes them special, what gives them value, and how can they be used?

Lets explore;

Fungibility: Identical & Interchangeable

order to determine what an NFT really is, we need to understand the concept of "fungibility." The term might sound complicated, but it's a simple idea that we can relate to our everyday lives.

At its core, a fungible item is something that can be exchanged 1:1 with another item of the same classification/description.

Each fungible unit is essentially identical, and therefore interchangeable.

Currency is a perfect example of a fungible asset. Whether it's your dollar bill, a dollar bill you found on the ground, or a dollar bill your crazy uncle keeps in his boot–each is worth 1 USD.

In addition to being interchangeable, fungible goods/assets are divisible. This means they can be added or divided without changing the fundamental nature of the item. A dollar can always be divided into any combination of coins totaling 100 cents and represent the same value.

Another key feature of fungibility is that slight physical differences between fungible assets have no real impact on their perceived or agreed value.

  • A serial number on a banknote plays no role in impacting the face value when you try to use it to pay for anything, and has no intended effect on their utility.

  •A crisp new $20 bill from the ATM will purchase just as much in a shop as one that's crumpled, tattered, and passed through countless hands for a decadee. 

   • Whether a €2 coin has the French, Dutch, or Austrian design on the reverse side has no bearing on their legal value in any countries within the European Union. 

           

                      

                             

•       What are nft services?                            

 

NFTs are tokens that we can use to represent ownership of unique items. They let us tokenise things like art, collectibles, even real estate. They can only have one official owner at a time and they're secured by the Ethereum blockchain – no one can modify the record of ownership or copy/paste a new NFT into existence.

• What is an example of nft? 

     Each NFT represents a real-world object like music, a video, an in-game item, or a virtual baseball trading card. These digital assets are bought and sold online, typically with cryptocurrency. ... Non-fungible tokens are unique, and each one has a digital signature that can't be exchanged.

  • What is the benefits of NFT? 

• Perhaps one of the greatest advantages of the NFT technology is that it allows artists and content creators to retain their full copyright. This is uncommon in most licensing agreements. This allows them to still generate revenue without giving up their copyrights. When it comes to NFTs, you can be assured of security.   

• How is an NFT created? 

   The process of creating a nonfungible token is called minting. The term refers to the process of turning a digital item into an asset on the blockchain. Similar to how metal coins are created and added into circulation, NFTs are minted once they are created. 

 

•What was the first NFT? 

Terra Nullius is the first NFT on the Ethereum blockchain with a mint date of August 7, 2015. According to this Reddit post, it appears that this project was built to allow you to stake your 'claim' on the blockchain.

 Wait for my second article on NFT

How to create and earn money with this

Stay tuned .