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Here are some definitions to help you better understand the explanation
Item or items that can be replaced by an identical copy.
Example | You order blue running shoes from the Nike website. When you place your order, you don’t care which specific pair they send you out of their entire inventory as long as you get a pair of the blue running shoes you ordered. After you get your pair, you lose them, well, you could just order another one and you’re back in business – that’s a fungible item.
Item or items that cannot be replaced by an identical copy.
Example | I order blue running shoes from Nike and once I receive them, I wear them everyday and everywhere. I travel with them, create memories and experiences, get married wearing them & friends recognize me by my shoes. It’s become part of my identity. I see deeper value in them. If I lose them, well I can’t just order another pair. It’s not the same pair although visually they’re identical. My blue running shoes are non-fungible, I can’t replace them because they’re one-of-a-kind.
A blockchain is a decentralized, distributed, and oftentimes public, digital ledger consisting of records called blocks that is used to record transactions. Blockchain stores information in batches called blocks. These blocks are linked together in a sequential way to form a continuous line. A chain of blocks. A blockchain. Each block is like a page of a ledger or a record book.
Records, assets or any other kind of data is not stored in one place. Instead, it’s spread across many people & computers, all over the world. Totally distributed, it removes the need of a central authority (ex. banks) to check the validity of the transaction.
In short, a decentralized ledger is not stored in one location, managed by one authority, but is spread across various locations and managed by many people.
Read the explanation and then try our quiz below to test your knowledge.
An NFT is a unique and immutable digital asset that is stored on the blockchain.
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NFTs are often associated with digital artwork but can be almost any digital assets like photos, videos, audio, 3D animation, virtual worlds and much more.
Ownership of an NFT does not inherently grant copyright or intellectual property rights to whatever digital asset the token represents. While someone may sell an NFT representing their work, the buyer will not necessarily receive copyright privileges when ownership of the NFT is changed and so the original owner is allowed to create more NFTs of the same work. In that sense, an NFT is merely a proof of ownership that is separate from a copyright.
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