What is NFT (Non-Fungible Token) Token?

Crypto coins, securities tokens, service tokens, assets using cryptology technology are diversifying day by day.  In this article, we will talk about NFT (non-fungible token) tokens, one of these assets.

What is NFT (Non-Fungible Token) Token ?

Non-Fungible, which is “unchangeable” in Turkish; it is used in the sense of unique, unique. Non-fungible tokens, on the other hand, are created in such a way that each of them, unlike cryptocurrencies or centralized currencies, has its own characteristics. For example, let’s say you lent someone $10. You don’t require your lender to pay you with the same $10 when you pay what you owe. Because the value of 10 USD is fixed and 10 USD in the pocket of one is no different from the other. This is not the case with non-fungible tokens. Even those that seem identical at first glance are irreplaceable or barterable in terms of the information or properties they contain. An example of a non-fungible token is the train ticket. Each train ticket; passenger name, destination and time, seat number.

What are the Differences of NFT Tokens from Crypto Coins?

While most tokens, especially cryptocurrencies, are interchangeable, each NFT token is different from the others because of the unique features they have. If you send someone an Ethereum and receive an Ethereum back, the exchange won’t make a difference to you. However, this does not apply to NFT tokens created on the ERC-721 protocol. Replacing your train ticket with any other train ticket, for example, can have very undesirable consequences.  As another difference, we can say that the tokens created on the Ethereum network and have a monetary equivalent have the ERC-20 standard, while the NFT tokens are produced in the ERC-721 and ERC-1155 standards on the Ethereum network.

Where are NFT Tokens Used?

NFT tokens have many uses; collections, games, art, social currency applications, Smart Contract Platforms, Governance, etc. are in demand. An example of NFT tokens is one of the first projects, CryptoKitties, which has made a lot of noise. On this platform where you raise virtual cats, each cat differs from each other in terms of age, breed, color, personality and each cat has no equal. Codex, an NFT token application used in the field of art, is a platform where you add information about your work to tokens. With this platform, you can prove the ownership and uniqueness of the piece of art and benefit from it in the fields of security and insurance.


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