What Is the Definition of a Non-Fungible Token (NFT)? Non-fun | Cryptoverse

What Is the Definition of a Non-Fungible Token (NFT)?

Non-fungible tokens (NFTs) are blockchain-based cryptographic assets having unique identification codes and information that separate them from one another.

They cannot be traded or swapped at parity with cryptocurrencies. This is in contrast to fungible tokens, such as cryptocurrencies, which are identical to one another and may thus be used as a medium for economic transactions.

The ERC-721 standard gave rise to NFTs. ERC-721 provides the basic interface—ownership information, security, and metadata—required for the exchange and distribution of gaming tokens. It was created by some of the same people that created the ERC-20 smart contract. The ERC-1155 standard expands on the notion by lowering transaction and storage costs for NFTs and grouping different types of non-fungible tokens under a single contract.

NFTs offer the potential for a variety of applications. They are, for example, an excellent vehicle for digitally representing actual assets such as real estate and artwork. NFTs, because they are based on blockchains, may also be used to eliminate intermediaries and link artists with audiences, as well as for identity management. NFTs have the potential to eliminate intermediaries, streamline transactions, and generate new markets.