Non-fungible tokens (NFTs) are gaining popularity quite fast - the past year has seen this niche grow into one among the foremost promising areas in crypto. So, what's about NFTs that has excited the crypto community and other industries like gaming? Let’s start by looking into their fundamentals intimately as we narrow right down to the worth proposition.
NFTs are designed as unique cryptographic tokens that represent the ownership of a digital collectible or tokenized asset on a blockchain platform. Unlike normal cryptocurrencies, NFTs are unique in terms of their inherent properties. This simply means each NFT has its own fundamentals and carries a special value from other tokens - hence digitally scarce.
As for the fungible crypto assets like Bitcoin, one unit are often interchanged with another unit of comparable quantity - this is often because the 2 BTC units would be essentially indistinguishable. On the opposite hand, NFTs aren't interchangeable since every token represents a singular digital collectible or tokenized asset. Basically, a part of their underlying value springs from proof-of-authenticity and digital ownership.
Read more on Drixx Blog - NON-FUNGIBLE TOKENS (NFTS)