Let’s make a step back, what are NFTs ?
From the basics, an NFT (Non-fungible Token) is a digital asset that is unique and irreplaceable. An NFTs worth is what someone is willing to pay for it. In short, we can also say it is a special kind of crypto asset. NFTs are used for digital art, sports collectibles, media, and more.
NFTs are cryptographically secured tokens with their history of ownership and current owners stored on a blockchain. They allow for robust primary and secondary markets for digital goods, cutting out middlemen and enabling creators to make the most of their work.
FUNGIBLE VS. NON-FUNGIBLE
Fungibility is when a good’s individual units are interchangeable and indistinguishable in value.
Currency like U.S. dollars are fungible. Every U.S. dollar is interchangeable and has the same value as any other dollar.
A Non-Fungible Token (NFT) or good has unique properties, making it have a different value from other similar tokens or goods.
A house with a terrace is valued differently and isn’t interchangeable with a house without a terrace. A terrace can be one of many different properties that make houses non-fungible and be worth different values. Similarly, a non-fungible token will have different artistic properties or other properties that render it unique from other tokens, giving it a unique value.