NFTs can be created or “minted” from digital objects that represent tangible or non-tangible products. NFTs exist on the blockchain, which is a decentralized public ledger that holds records of transactions.Īlthough NFTs were first created on the Ethereum Blockchain, many other blockchains also support NFTs as well. An NFT cannot be divided, in the same way, you could not divide a painting without destroying it. You could transfer 0.0000001BTC or split 1 ETH into 0.5ETH and 0.5ETH. NFTs are also indivisible, which means that they cannot be divided into smaller parts. Something like owning the Mona Lisa and knowing that it’s the only one in the world as there is only one of it (and that any other thing that looks like it is a copy). Fungibility is a characteristic of currencies and cryptocurrencies. Non-fungible means that the item is unique and cannot be replaced with the exact same item. So, for example, Bitcoin is a fungible token, for the mere fact that you can trade it for another bitcoin. And it does not matter which particular bitcoin you have in your possession, as they all have the same value. The world Fungible means that one could replace it with the exact item/product.
An NFT or Non-Fungible Token is a token that is not replaceable by another token. The main difference between an NFT and another token on a blockchain is that an NFT is not fungible and not divisible (non-fungible and indivisible).
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