What is an NFT or non-fungible token?
An NFT token is a token that uses its smart contract to store unique information in each token. And for this one NFT token is different from another NFT token. Which is why it is called a non-fungible token.
I think the matter has become a little confused! Let's try to remove the confusion with small examples.
For example, if you have one bitcoin, the value of that bitcoin is 10000 / - dollars, now your friend also has one bitcoin. What is the difference between your bitcoin and the bitcoin that your friend has? Certainly not. That means your friend and your friend's bitcoin is worth the same. You can exchange your bitcoin with your friend if you want. This will not make any difference in the price of any bitcoin.
Suppose you have a new 500 taka note of 2020 and your friend has a 500 taka note of 2010. Now what is the difference between your 500 rupees note and your friend's old 500 rupees note in terms of value? Certainly not. This means that whatever you can buy with your 500 rupees, you can buy the same thing with the 500 rupees that your friend has. This thing is called fungible.
Now let's talk about non-fungibles.
NFT or Non-fungible tokens differ from one another. Suppose you have an NFT token. On the other hand your friend also has an NFT token. Now your NFT token and your friend's NFT token have the same value? No, not the same (the value of the token will depend on what is stored in the NFT token). And this is the main feature of NFT token.
Another feature of NFT tokens is that these tokens cannot be broken. This means that if you have 1 bitcoin, you can spend or transfer from that 1 bitcoin. For example, you can transfer 0.05 bitcoin if you want. But NFT tokens cannot be broken and transferred in this way.
CryptoKitties is currently a good example of an NFT token. Which is a game that is very popular at the present time. The cats of these CryptoKitties are NFT. You will find different types of cats in CryptoKitties. And you can store these cats in tokenized form. And you can change that cat if you want. Because you have the private key of this cat or NFT token.
When you make a change to a cat, it will be recorded on the blockchain due to the tokenized form. CryptoKitties is a game based on the Ethereum blockchain that provides the NFT of the ERC-721 smart contract
Specialty of NFT tokens
First of all, NFT tokens have their own unique features. This means that your NFT token is different from any other NFT token. Now this separation is the main feature of NFT tokens. And the value of your NFT token will depend on what you store in that token.
Suppose you have a full upgraded weapon of Pubji game in your NFT token and your friend has a building store in his NFT token. So, you must understand that the value of your friend's NFT token cannot be the same.
How to use NFT token?
Since CryptoKitties is currently a popular NFT tokenize game, let's discuss that first. Suppose you have a CryptoKitties cat or NFT token, all of which are different. Each cat has a different identity or specialty. You can store these cats and sell them at their market price in the future. And its price can be determined by the market or those cats.
As a result, the value of one NFT token may vary completely.
Again gives another example. Suppose you are playing a pubji game which is NFT tokenized. In other words, all the information of your game is recorded in the blockchain. Now everything in this game is tokenized. Everything about your character, weapons, etc. Now you have upgraded one of your weapons. Then the price of that weapon i.e. NFT token will definitely increase more than it was before. Now you can sell this weapon to anyone else if you want. Because you have the "private key" of that token. This way an NFT token is different from other NFT tokens.
You may be familiar with Decentraland (MANA) tokens. Their concept is a decentralized world. You can purchase any land or property from Decentraland. And you can build your own house on the land you buy there. As we can do in real life, but it is completely virtual. And if you want, you can sell that house later. When you buy a place and build a house / building there, surely the price at which you have purchased it will not be limited to that price! Yes, this is NFT.
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