Understanding Non Fungible Tokens- What You Should Know

The disruption in technology has given rise to the adoption of new and improved technologies, creating a widely accepted medium of exchange and investment all over the world. These technologies have extended beyond cryptocurrencies to the creation, ownership and sale of digital assets through tokenization. These digital assets are referred to as non-fungible tokens(NFTs). This article talks about understanding Non Fungible Tokens.

To aid understanding of this concept, the terms "fungible" and "token" will be considered individually. The word "fungible" indicates an item (such as money or commodity) that can be interchanged or substituted for another item of the same type or value. Like physical money, cryptocurrencies are fungible, meaning that they can be traded or exchanged, one for another. They're also equal in value—one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin.