Fungible Tokens v. Non-Fungible Tokens: NFT’s rising role in blockchain’s future
Blockchain began with fungible tokens, but its evolution brought the non-fungibles. So what sets non-fungible tokens (NFTs) apart from their fungible step-brothers? How are they used by people all around the world? How are both obtained? Let’s define them both and then we’ll dive right in…
Merriam-Webster describes fungible as ‘being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part.’
When you go to McDonalds and order a McChicken (add pickles!) they will ask you for $1.00. You extend any $1 bill you have to the cashier and they accept it. You could have used any dollar to make the transaction. Bitcoin, XRP, Ethereum all share the same property of interchangeability.
Fungible tokens are like grains of rice.
NFTs represent a unique asset; there are no two alike. If you ask your friend to watch your dog Ruffles while you’re away, you can’t just show back up to a different dog and your friend say “don’t worry, it’s still a dog.” No matter how nice your trip was, there was no replacing your best friend Ruffles. He was unique.
NFTs have personal characteristics that make them unique and irreplaceable. You can’t split them up, you can’t find their identical twin, but you can apply individual value to it. In Ruffles case, he was priceless.
The difference is quite simple:
So how do you use NFTs?
Non-fungible tokens have had a growing interest since 2017 when Cryptokitties started up the digital collectible market using Ethereum as their fungible. The market has expanded since then with art, digital real-estate, music, gaming and so much more. Nearly anything you can imagine having unique value can — and probably has — become an NFT. While most NFTs have been constructed on the Ethereum blockchain, faster and cheaper solutions have evolved overtime.
Using the lower cost, faster speed fungible token ICON, Project Nebula provides a fun NFT marketplace for gamers, art collectors, story lovers, and soundtrack enthusiasts. If you’re interested in trying a fun twist on NFTs by immersing yourself into an exciting space exploration strategy game, collecting some awesome digital art, discovering hidden lore, and finding unique soundtracks, you may consider making your first — or next — NFT investment with Project Nebula.