June 19, 2023
3
min read
NFT = Non Fungible Token
Get to know the basics between fungible and non-fungible.
What does Non-Fungible even mean?
- Ownership of a thing that has unique properties.
- Examples:
- Digital Collectibles: Art
- Real World Items: Deeds to Property
What is the difference between Non-Fungible & Fungible? Could you show me an example?
Fungible = the ability to be replaced
- Example: Two people are in the room and there are two $1 dollar bills on the table. They are allowed to each have $1 dollar in order to leave the room. In this scenario, each person doesn’t care which $1 dollar bill they take. The time it will take in order to leave the room will be minimal as they quickly agree.
Non-Fungible = the ability to not be replaced.
- Example: The same two people are in the room and there are deeds of two cars. One car is a Ford Mustang and the other is a Porsche 911. They are allowed to place ownership of one car deeds before leaving the room. In this scenario, they are both cars, although they are not replaceable. Each deed has the unique identifiers that provide ownership of that particular car.
- Both people will have their preferences to drive American or European and will take the time to deliberate on their decision of ownership.
Now we can take the same concept of physical items into the digital world. A Non-Fungible Token, indicates ownership of a digital representation of a unique item. We can now use the Polygon Blockchain as a public record for tokenized assets such as property deeds, concert tickets, art pieces, and other unique items. As the public blockchain infrastructure provides a place to search and find who has ownership of a particular piece. Anyone at any time on a blockchain explorer, can input a member's address and see the ownership of a particular token.
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