What Are Non-Fungible Tokens?

Non-Fungible Tokens are a way to represent items on the blockchain. They can bring the benefits of blockchain to both digital and real-world assets. So what does it mean to be fungible, or in this case, non-fungible? Fungibility describes how easily an item can be replaced by an identical item.

A dollar bill is fungible. No matter what your dollar serial number is, it still returns the same. Each dollar bill can be replaced with another and is easy to use.

NFT is also inseparable. Unlike most blockchain-based coins and tokens, NFTs cannot be broken down into smaller pieces. A bitcoin can be divided into fractions of up to 100 million. You can also navigate this site https://rfyn.io/ to get more information about non-fungible tokens.

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This makes sense when you think of NFTs as real-world assets. Just like the house, or the car, or even the plane ticket from the examples above, you can't disassemble it and still expect it to work.

When it comes to selling art, reputation is everything. NFT allows potential buyers to independently verify information about an artist's past physical and digital work.

The price, original date of sale, and even records of all previous owners are digitally attached to the item. This information is stored securely on the blockchain and is publicly available to build trust with art buyers.

This feature has historically been mostly provided by galleries, but blockchain and NFT have offered an alternative for artists selling their work. The NFT can serve as both a certificate of authenticity and the art itself.