What is Non-Fungible Token (NFT) ? How to simply understand it ?
The Background : We have been updating ourselves with daily news about Cryptocurrency and related other digital currencies and assets on the internet. The overall mechanism being the working of these open digital assets is the “Power of Blockchain” that runs extremely well behind the popularity of these digital assets.
NFT, is one such digital assets made on top of Blockchain mechanism, with unique identity code that helps to uniquely identify digital assets such as image, songs, digital data or documents.
However, NFT’s are different from Crypto currencies because they can not be traded or exchanged at equivalency. Hence while Cryptocurrency is Fungible but NFT is non Fungible.
The situation has only gotten more complicated in the year since NFTs gained acclaim. Pictures of apes have sold for tens of millions of dollars, there has been an endless supply of stories about million-dollar NFT hacks, and corporate cash grabs have only increased.