Fungible Tokens Vs Non-Fungible Tokens — Key differences and features
In simple terms, fungible tokens are interchangeable or exchangeable, while non-fungible tokens are non-exchangeable. One should notice the main difference that in NFT is the transfer of ownership when a purchase or sale is made.
However, functionality, purpose, data, and uses are stored in the blockchain in these tokens.
Fungible Tokens (FT)
- Fungible tokens are entirely exchangeable tokens. (e.g., Fiat currencies)
- These are cryptographic tokens that are identical or uniform and can be interchanged freely with other fungible tokens of the same type.
Non-Fungible Tokens (NFT)
- These tokens are different from fungible tokens in the way that they represent unique, collectible items.(e.g.Digital art)
- They’re unique because they can’t be divided or exchanged for other non-fungible tokens of the same type.
- NFTs can be considered tokens with no fungibility feature and offer feasible solutions for tokenizing ownership and property.
Properties of Fungible Tokens
One of the critical characteristics of Fungible Tokens is that they can be exchanged for equivalents in the same way that regular currency can. The most popular and effective implementation of this interchangeability is cryptocurrency.
These tokens can be divided into smaller units, and any number of units can be obtained; it makes no difference to the holders as long as the value remains constant.
Each token is different from other tokens of the same type, maintaining its integrity and uniformity.
Properties of Non-Fungible tokens
NFTS is non-interchangeable as they cannot be replaced with other tokens of the same type.
These tokens are not divisible and cannot be broken into smaller units.
These tokens have their own unique and individual property, and each token is identical to the other.
What is our best offering?
After looking into the critical features of FT and NFT, one might be curious to have tokens for themselves. Here, we come in.
Blockchain Firm offers NFT and NFT Marketplace Development to clients globally. We also have the finest industry experience, allowing us to create tokens that are both stable and unique.