Know Your NFT: What is NFT

Newbie Explanation:

NFT is a Non Fungible Token. Non Fungible Token is a unique address which help us to map a Non Fungible Asset. So What is a Non Fungible Asset? NFA can be your mobile or house or your domain name. NFA should be unique and it should have value which is unique.Consider your Domain Name, it is unique and there cannot be any copy of it.So its one of its kind. NFT is just a unique number without mapping it to NFA.

Pro Explanation:

Most discussions about non-fungible tokens begin by introducing the idea of fungibility, which is defined as “able to replace or be replaced by another identical item”. We think this overcomplicates things. To get a better sense of what might constitute a non-fungible asset, just think about most of the stuff you own. The chair you’re sitting in, your phone, your laptop, anything you could go and sell on eBay. All of these fall under the category of non-fungible things. It turns out that fungible assets are actually the odd ones out. A currency is a classic example of a fungible asset. Five dollars is always five dollars no matter the serial number on the specific five-dollar bill, or whether its five dollars sitting in your bank account. The ability to replace a five-dollar bill with another five-dollar bill (or five ones, for that matter) is what makes currency fungible. Note that fungibility is relative; it really only applies when comparing multiple things. Consider business class, economy class, and first-class flight tickets. Each ticket is roughly fungible within its class, but you couldn’t fairly swap a first-class ticket for a business class ticket. Even the chair you’re sitting in is roughly fungible with a chair of the same model, unless you’ve developed a special attachment to your particular chair. Interestingly, fungibility can also be subjective. Back to the flight ticket example: a person that cares about sitting in a window seat vs. an aisle seat might not consider two economy class tickets interchangeable. Similarly, a rare penny might be worth 1 cent to me but worth much more to a coin collector. We’ll see that some of these nuances become important when representing these items on blockchains.

Next Question: Which Blockchain can mint(create) NFT?.