미쉘원홀딩스(주)

What is NFT?

NFTs (non-fungible tokens) are unique cryptographic assets that cannot be replicated.

In short, NFTs (non-fungible tokens) are unique cryptographic assets that cannot be replicated. NFTs are digital assets that represent intangible digital items like videos, images or in-game items.

On the other hand, one NFT cannot be interchanged with another NFT. Each NFT is a unique digital asset that can be traded in a public market.

The difference between fungibility and non-fungibility lies in the fundamental nature that an interchange is possible. Fungibility is the property of a good or asset whose individual units are interchangeable and that cannot be fundamentally distinguished.

Gold and legal tender is a perfect example of a fungible product. This is because each unit is interchangeable with all other equivalent units. For example, a $5 bill can be exchanged for another genuine $5 bill.

Allowing a free exchange is a desirable property of a currency. In a collectable item, fungibility is not a good property. It does not provide ways to trace the product history.

A bitcoin is a fungible token. A user can trade one bitcoin for another bitcoin. It will still be one bitcoin. But the value of a bitcoin may vary depending on when it is traded. Besides, a fungible token can be divided, therefore, part of a bitcoin measured in Satoshi can also be traded.

Non-fungible tokens consist of identifying information recorded in smart contracts. It is this information that makes each NFT unique, and as such, they cannot be directly replaced by another token.

The inseparability of NFT can be taken as part of a concert ticket being unable to be shared or sent. The decimal part of the corresponding ticket has no value and cannot be returned.

CryptoKitties is one of the first few NFTs. All Cryptokitties based on a blockchain are different. If one sends a CryptoKitty to another and receives a CryptoKitty in return, both will be completely different from each other.