[Danslahm Video] What is NFT? The definition of NFT2022-06-18
NFT is called Non-Fungible Token, which is indivisible, irreplaceable, and unique. The opposite of non-Fungible is Fungible. So, what is Fungible?
It’s simple! For example, if I have a $100 and you have a $100, at this moment, there is no difference between your $100 and my $100, they can also be exchanged, and if I find that there is not a whole $100 in my bag, I can exchange two $50 bills with you. It’s also worth $100.
So, these $100 are interchangeable, they have the same value, they can be divided, they can be replaced, and that’s Fungible.
But Non-Fungible is like your $100 with Beyonce’s signature on it. At this moment, this $100 has become a unique and special item, and its value has changed. After all, $100 could be worth 30 million in front of Beyonce’s fans, who are willing to pay many $100 for a unique $100 just because it has a signature that no other $100 can replace.
Obviously, this “$100” is irreplaceable, and the value in everyone’s eyes is not the same. This is non-Fungible.
To put it more simply, putting a bunch of NFTs together is like watching Pop stars in the 1990s like Michael Jackson or Mariah Carey. Each of them is beautiful, but more importantly, they are also distinctive and recognizable. Each of them is unique and irreplaceable, which is non-Fungible.
However, stacking a bunch of Ethereum’s fungible tokens together is like looking at a boy band and a girl band nowadays. They all seem to look the same. It seems that replacing them will not make much difference. This is Fungible.
In the crypto world, tokens like Bitcoin and LUNA are fungible tokens that are not unique and can be exchanged and divided equally.
But boring APE and Jay Bear are NFTs. NFTs are unique, just as a painting cannot be torn in half. NFT is indivisible.
Although everyone is emphasizing the non-fungible of NFT, don’t forget that NFT is also a token. All the NFTs that tokens can do can also be done, and NFTs have the same features as a token, such as digital proof of interest, encryption, and circulation.
Today, there is a lot of success in NFT applications, and more diverse forms of NFT are emerging. It is clear that the market will evolve to create more innovative NFT applications, and we have always believed that the time will come when everything can be NFT.
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