NFT Tokens (Non-Fungible Tokens) With Unique Characters
When a token can be exchanged (fungible), this means that the token can be replaced with something similar. And this can be exchanged easily. The real world example of something that can be exchanged is a grain of rice or a $ 2 in your pocket. If you lend 2 $ to someone, it doesn’t matter if the person returns it not the same paper money.
This condition is different from non-fungible objects. Although the two objects are at a glance the same, each has unique information or features that make it irreplaceable or impossible to exchange.
One physical example of assets that cannot be exchanged is airline tickets. Obviously, airline tickets look similar to each other, but each ticket contains a different passenger name, destination, departure time and seat number. Swapping your property with other people has serious consequences, not only can you be thousands of kilometers away from your destination, but airport security will take it seriously.
Why is the NFT token different from other tokens?
Because NFT (Non-Fungible Tokens) tokens offer unique characters that make them digitally different and rare. Many tokens and even cryptocurrency can be calculated. If you send a Bitcoin and get Bitcoin back, you won’t realize the difference.
In many ways, tokens that can be calculated are built using a standard called ERC-20. Let’s imagine each token is a $ 10 bill. If you send a token to someone and get it back one week later, the token will be similar (even though there will be price fluctuations).
This all changes with the NFT token, which is mostly based on ERC-721. If you accidentally send one of these tokens, then get a different ERC-721 token, you will be very disappointed.
There are other more important differences. Like cash, where you can bid with a $ 10 bill and get a change.
The first pioneer of NFT tokens was CryptoKitties, a blockchain platform where players have the opportunity to collect and breed digital cats
In this case, CrytoKitties replicates this concept in the crypto world, with digital genetic material each cat stored on the blockchain. They can be bought and sold using Ethereum. Some are rarer than others.
For example, these tokens can be a safe and eternal way to store birth certificates, diplomas and academic letters, guarantees, and identities – even artwork and proof of property ownership.
Sometimes it takes months to develop the DApp, and in the fast-moving blockchain world, the costs compete with the benefits.