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Cryptocurrency News Articles

What Is an NFT? And How Does It Differ From a Fungible Token?

Jul 25, 2024 at 05:56 pm

An NFT is something that can't be duplicated—it's the complete opposite of fungible. The first known NFT, “Quantum,” was a video clip dubbed

What Is an NFT? And How Does It Differ From a Fungible Token?

An NFT is a unique digital asset that cannot be duplicated. It is the opposite of a fungible token, such as a bitcoin, which can be exchanged for any other bitcoin.

The first known NFT was created in May 2014 and sold for $4 USD. Since then, NFTs have grown into a $51.6 billion CAD ($71.3 USD) market.

Fungible tokens are interchangeable and indistinguishable from each other, like two one-dollar bills. Non-fungible tokens, on the other hand, are unique and cannot be exchanged for any other token.

This concept has been around for centuries, but NFTs are a new way to apply it to digital assets.

Original source:forbes

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