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A non-fungible token is a digital certificate of authenticity and credibility that you own something collectively known as the blockchain. It keeps a record of your transaction history. NFT is opening a creative platform for underrated goods and giving collectors an easy way of collecting arts digitally. Non-fungible tokens (NFTs) are evolving with time and industry growth. Beeple is a popular name emerging in the NFTs world. Read below to explore how NFTs work, and how they're being used.
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Non-fungible tokens, or NFTs, are unique crypto assets. They can be used to represent both tangible and intangible items. A tangible product is a physical object that can be touched such as a building, gadget, etc whereas an intangible product can only be perceived indirectly. Fungibility is the ability of an asset to be interchanged for another of an alike item for example gold, dollar, etc. Non- fungibility is the ability of an asset to be irreplaceable or unique for example art, etc.
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Non-fungible tokens (NFTs) can be used for digital assets or goods that are different from each other to prove their worth and rarity. They can represent and provide digital acceptance to everything from virtual games to artworks etc.
Non-fungible tokens are not traded on standard and traditional exchanges, instead, they are purchased or sold on digital arena or marketplaces.
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Non-fungible tokens can be created on contract-enabled blockchains with non-fungible token tools and support. Ethereum was the first to be widely used, NEO, EOS, etc now also have NFT standards.
Non-fungible tokens and their smart contracts allow for detailed information to be added, like the identity of the owner, etc. The potential of non-fungible tokens is to provide proof of digital ownership of an asset in the digital world making the easy flow of buy and sell on non-fungible items.
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