What is NFT

NFT stands for Non-Fungible Token. Before understanding NFT one should have an idea about fungibility and non-fungibility.

Fungible Assets

Any asset whose units are interchangeable is known as fungible asset. Every unit of a fungible asset have a similar market value & validity. Lets take an example of Rs 100, one note of Pakistani hundred rupees is equal to another note of Pakistani hundred rupees in terms of validity and value.

Other examples of fungible assets include precious metals, commodities, cryptocurrencies etc.

Non-Fungible Assets

After knowing you about fungible assets you may have an idea about non fungible asset. They are not interchangeable with each other because of there unique properties. Even if they look similar but they are different in market value it’s because of their properties. Lets take a real-world example of non-fungible asset that is cinema ticket. Even if two movie tickets of cinema are same in terms of design, but the front row ticket have more value than the back row ticket.

What are NFTs?

The Non-fungible tokens are basically digital assets that feature the information documented in smart contacts. Currently NFTs are the hottest topic in the domain of blockchain. NFTs are unique and it gives a person privilege of complete ownership or authority on a digital asset. One can buy and sell NFTs using crypto currency and amazingly he or she does not need a physical asset to associate with NFT. However, NFTs do represent the physical assets such as artwork.