Can you explain the concept of fungible tokens in relation to non-fungible tokens (NFTs)?

1 answers

• Mar 22, 2022 · 3 years ago
  Fungible tokens, like Bitcoin and Ethereum, are like the dollar bills in your wallet - each bill has the same value and can be exchanged for another bill of the same denomination. Non-fungible tokens (NFTs), on the other hand, are like rare collectibles or unique pieces of art. Each NFT is one-of-a-kind and cannot be exchanged on a one-to-one basis. NFTs have gained popularity in the digital art world, where artists can create and sell unique digital artworks. These artworks are tokenized as NFTs, which provide proof of ownership and authenticity. The value of NFTs is subjective and can vary based on factors like demand, rarity, and the reputation of the creator.
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