Non-Fungible Tokens, Explained

Veröffentlicht auf by Cointele | Veröffentlicht auf

2.Because they can offer unique characteristics which make them different and digitally scarce.

Many tokens - and indeed cryptocurrencies - are fungible.

If you send someone a Bitcoin, and get one back, you wouldn't notice any difference.

A lot of the time, fungible tokens are built using a standard called ERC-20.

For the sake of simplicity, let's imagine each of these tokens is a $10 bill.

If you sent a token to someone, and got another one back a week later, they would be identical.

This all changes with non-fungible tokens, many of which are ERC-721 compliant.

If you were to accidentally send one of these tokens to someone, and get a different ERC-721 token back, you might be very upset.

Fungible tokens are divisible - meaning you can send a fraction of one ERC-20 token.

On the other hand, non-fungible ERC-721 tokens cannot be divided and must be bought or sold whole.

x