The impressive thing about the world of cryptocurrencies is that there is always something new to learn, and this time we will refer to the concept of fungible, a term that will become more and more common, because it is becoming a trend within the digital universe. Although the concept in analysis is actually rather that of “non-fungible”, more specifically the so-called Non-Fungible Tokens or NFT.
Let’s start by saying that fungible is the property that makes something interchangeable, such as a $1 bill, which I can be (inter)exchanged for another $1 bill, and the “new” $1 bill will work the same way as previously had. That is, banknotes are interchangeable or fungible.
In contrast, something non-fungible will then be something that cannot be exchanged for each other. Most of the other things we have like the phone, our house, our pet, or our siblings, for example, are non-fungible; which means they are unique, special and non-exchangeable. Other examples of non-expendable things could be artwork, collectible cars or exchange cards.
However, Non-Fungible Tokens (NFT) are the latest development in the cryptocurrency market after decentralized finance (DeFi). Traders and investors are talking about NFT and its potential in the near future. A non-fungible token (NFT) is a type of cryptographic token that refers to a specific object in a blockchain. These can be fully digital assets or real-world assets with tokenized versions. As the NFT is not identical to each other, they can act within the digital domain as evidence of authenticity and ownership.
In fact, using NFT could theoretically solve or reduce the popular inflation problem that many games have. While virtual worlds are already thriving, such as Divi Project’s initiative in the video game industry Siege Worlds, real-world asset tokenization is another interesting use of NFT. This tells us a lot about how the potential of blockchain technology is much more than cryptocurrencies. NFT would allow individuals and businesses to place IDs, certificates, real estate data, and another important real-world asset information in the blockchain. Imagine that your MBA diploma is issued in the blockchain as a digital document recognized by all authorities around the world, without the need to translate, authenticate and verify it.
For all this, Divi Project CEO Nick Saporano, always focused on educating the great DIVI community, brings a very interesting conversation with Jeremy Born, CEO of Coin Genius and the leader of Bitcoin Origi, just about the new NFT. Listen to it and learn in The Divi Crypto Podcast, available at: https://soundcloud.com/divi-crypto-podcast/ep0077