Some kitties are more valuable than others, and you can buy and sell your CryptoKitty NFTs for varying amounts of fungible tokens like Ether, depending on the rarity of your NFT. When you buy a CryptoKitty, you are gaining ownership of a non-fungible token that corresponds with that kitty.
Each is unique, has its own name, eye color, fur color, fur pattern, facial expression, and special features. There are thousands of CryptoKitties in existence, but they are not created equal. Perhaps the easiest example is the most popular NFT in blockchain history, CryptoKitties. NFTs work essentially as a database entry for any type of good. In fact, the possibilities of blockchain assets are nearly endless. However, blockchain tokens can represent more than just currency. You might think that doesn’t make much sense, and if we were talking about currencies you’d be right. Non-fungible tokens are blockchain assets that are designed to not be equal. Why Would I Use a Non-Fungible Token (NFT)?
Fungibility is essential to any currency, be it the dollar or Bitcoin. That would be insanity and economically unfeasible. Or, consider a world where some $20 bills are more valuable than others. Imagine if you had to investigate the history of every dollar bill before you accepted it. That’s the power of fungibility.Ī currency without fungibility is unstable and likely to collapse. Even if your $20 bill was used in a drug deal before you received it or came from Satan himself, the bill is still valuable at the store. If we take them to the store, the shop owner will accept them equally, even if yours was printed in 2018 and mine in 1980. The $20 bill in your pocket is just as valuable as the $20 bill in mine. It generally means that a currency’s history doesn’t affect its value and each piece of that currency is equal in value to every other piece. In fact, if you’ve ever used money before, you intuitively know what fungibility is, you just may not know the vocabulary word used to describe it.įungibility refers to a currency’s ability to maintain a standard value and uniform acceptance. We need a good definition of fungibility before we can talk about something that’s not fungible. A Complete Guide to Non-Fungible Tokens (NFTs): A Primer on Fungibilityīefore we get into non-fungible tokens (NFTs), we need to address the elephant in the room. The result is exciting new markets could open up for digital (and real-world) goods we can’t even imagine yet. Alongside their fungible, cash-like counterparts, non-fungible tokens open the door to the digitization of assets and data. They could be the backbone of a new blockchain-powered digital economy.
#Non fungible tokens examples movie#
NFTs have applications everywhere from video games to fine art to movie tickets. What are non-fungible tokens? In this complete guide, we’ll take a deep dive into the world of non-fungibility, and what it means to create unique digital assets on the blockchain. The most exciting opportunities in blockchain come when you use non-fungible tokens to certify and secure uniqueness and identity. However, currency is only one application of the underlying blockchain technology. The rise of Bitcoin has made cryptocurrency mainstream, with Bloomberg and CNBC reporting regularly on the cryptocurrency markets and the prices of these digital coins.
Most of us have heard about digital cash at this point. Non-fungible tokens are a special type of token that represents a unique asset.
#Non fungible tokens examples how to#
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