What is NFT?
Non-Fungible Tokens are gaining more traction in the crypto market. But what exactly are NFT and how are NFT used?
We can categorize tokens into two types: Fungible Token (FT) and Non-Fungible Token (NFT). The main characteristic of fungible tokens is that they are interchangeable and divisible. Tokens like Bitcoin, Ethereum, and Cortex are considered as fungible tokens, as well as various tokens in the cryptocurrency exchanges.
As for non-fungible token, it contains something unique and is therefore not replicable. This unique aspect is written inside the metadata of the token itself and can be seen as a permanent, unalterable certificate of authenticity. It is particularly useful as proof of asset or ownership.
NFT can tokenize almost anything. So far, the most common use cases for NFT are:
- Gaming items (rare skins or weapons)
- Virtual Assets and addresses
- Real World assets (ownership)
- Tokenized luxury goods, e.g. wine
- Digital art and music
- Collectibles
Let’s talk about a few cases:
Tokenized luxury goods, e.g. wine
What’s good to tokenize red wine? The process of making a bottle of red wine. from grape harvesting…
