At a time when cryptocurrency is set to be one of the biggest booms in technology, finance and innovation, learning about some unique ways to navigate it is a powerful tool in your hands. Read on to understand some basic concepts of this relatively new way of handling and managing digital assets.
What is a NFT?
NFTs or Non-Fungible Tokens are a virtual way to denote unique or rare data or assets. Each NFT has unique properties which make it distinguishable from the others. A fungible token is the opposite, ie, interchangeable with other assets or blocks of data.
Blockchain technology has made it possible to maintain NFTs at a low cost, thus making it viable to use NFTs, and the added security of having distributed ledgers enhances the appeal of doing so.
They can be utilised in a variety of different fields and sectors, starting from education to personal belongings to government to healthcare to even real estate. The security, transparency and real life value make it sure to be indispensable in future.
It will also help in partial ownership since it keeps records impartially and keeps track of which changes are made and by whom.
Fungible tokens are cryptocurrencies, while non-fungible tokens can be used to store important assets, since currencies have to be more common and easily usable.
Fungible tokens being interchangeable and divisibility, ie, the main amount can be broken down into smaller parts, makes them perfect for earning, selling and trading for other items. NFTs, on the other hand, are never replaceable and cannot be divided into lesser values. Each NFT is a non-divisible individual identity.
Conclusion
This is one of the fastest evolving fields in the current scenario. Read up to learn more about how you can stay ahead of the trend, and use it to your gain.