Introduction
Introduction
The word tokens mostly bring the concept of currency in our minds, i.e., something that we can exchange for something else. However, this isn’t entirely correct. Rather than just being a currency, a token represents any fact, feeling, quality, etc. visibly and tangibly. A few common examples of a token can be:
Voters ID: It is a token of the fact that you are eligible to vote.
Driving License: It is a token that shows you have undergone the process of proving that you can dive responsibly.
Coins: These are the tokens that show the value of something like a pair of glasses is $10 worth.
There can be several such things that can be considered as tokens. Now, these tokens can be divided into two categories: Fungible and Non-Fungible. You must be aware of the concept of fungible tokens that can be exchanged for something. Let’s now learn what Non-Fungible Tokens are.
If we dive into the cryptocurrency market, you will see that the most prominent tokens are fungible. For instance, you can exchange a Bitcoin for another Bitcoin without affecting its price. On the other hand, Non-Fungible Tokens are the ones that don’t hold this property of being exchangeable. Each of them has its own value, like your car and watch has its own.
In simple words, fungible tokens can be replaced by something identical to it, while Non-Fungible Tokens can’t be. Another difference between the two is divisibility. Like you can divide a Bitcoin into two parts, you can’t split a non-fungible token due to its uniqueness.
Many people still don’t know how Non-Fungible Tokens came into the market. If you are one of them, then it is time to get aware of this factor. Non-Fungible Tokens’ concept came into notice when a blockchain-based platform, CryptoKitties, made $12 million worth of transactions of virtual kittens. As each cat has its own features and traits, it was sold and bought at different prices.
Therefore, these kittens followed with the two essential qualities of Non-Fungible Tokens:
And all these transactions took place in Ethereum. After CryptoKitten came into the limelight, several gaming platforms seem to opt for this method of transaction.
Non-Fungible Tokens or NFTs hold a significant market in the gaming industry. Plus, more and more gaming platforms are now incorporating cryptocurrencies, giving more space for the use of NFTs. Players can make in-game purchases conveniently with the help of these NFTs, just like the kittens were sold on CrytoKitten. For example, buying and selling game skins, armours, and other similar assets will become even more accessible. But this isn’t the only use case of NFTs. With their advancements, they indeed will find a place of their own in the world.
We hope all this information will make the Non-Fungible Token’s concept clear to you. So now you can see how you can benefit from them and use them wherever possible.