Fungible Tokens Vs Non-Fungible Tokens – Key differences and features
In simple terms, fungible tokens are interchangeable or exchangeable, while non-fungible tokens are non-exchangeable. One should notice the main difference that in NFT is the transfer of ownership when a purchase or sale is made. However, functionality, purpose, data, and uses are stored in the blockchain in these tokens. Fungible Tokens (FT) Fungible tokens are entirely exchangeable tokens. (e.g., Fiat currencies) These are cryptographic tokens that are identical or uniform and can be interchanged freely with other fungible tokens of the same type. Non-Fungible Tokens (NFT) These tokens are different from fungible tokens in the way that they represent unique, collectible items.(e.g.Digital art) They’re unique because they can’t be divided or exchanged for other non-fungible tokens of the same type. NFTs can be considered tokens with no fungibility feature and offer feasible solutions for tokenizing ownership and property. Properties of Fungible Tokens Interchangeability One of the