Before talking about the goods that are NFT based and why it’s beneficial to own them, I personally feel that it is crucial for us to go back to the roots and understand what NFT is and what it is used for. But before I begin with my article, be sure to check out AIO Metaverse, an NFT marketplace design in Malaysia for more information.
What does ‘fungible’ mean?
To begin, you must first comprehend what NFT is. Non-fungible tokens are referred to as NFTs. Before you begin, you must first comprehend the meaning of the phrase ‘fungible.’ The phrase fungible refers to something that can be traded. As a result, when anything is described as fungible, it signifies that it can be traded for another item of the same value in the same category.
In terms of money, for example. The worth of my RM10 is the same when I swap it with someone who gives me two RM5. It can be called fungible because the base value remains the same and you still get RM10. Similarly, if I exchange my $1 bill with your $1 bill, it remains the same since they are both exchangeable and the value remains the same.
What does ‘non-fungible’ mean?
Non-fungible is the polar opposite of fungible. This indicates that the item cannot be exchanged for another item from the same category. Take, for example, Leonardo da Vinci’s “Mona Lisa,” a well-known work of art. Despite the fact that it has been attempted to be recreated and that many copies exist, there is only one original piece.
What are ‘non-fungible tokens’ NFT?
Non-fungible tokens are digital assets that can also be used to represent physical goods like art and real estate. To make acquiring, selling, and trading more efficient, these real-world tangible things can be “tokenized.” Non-fungible tokens are also less susceptible to fraud because they are original, unique, and one-of-a-kind. People’s identities, property rights, and other things can all be represented using NFTs.
NFTs are essentially digital replicas of real-world collectibles. NFTs are most typically seen in the form of artwork, music, GIFs, photos, and other similar media. As a result, the purchaser receives a digital file rather than a real oil painting to hang on the wall.
They also get the property’s exclusive rights. NFTs can only have one owner at any given moment. It’s straightforward to verify ownership and transfer tokens between owners because NFTs provide unique data. They can also be utilised by the owner or author to store special information. For example, artists can sign their work by including their signature in the metadata of an NFT.
