NFTs is a very vast and confusing world to deep dive into. This is why it is very important to start from the beginning and make sure that we understand it from the ground up.
And to do this, we have to learn the basics of Non-Fungible Tokens or NFTs, beginning with defining what fungible and non-fungible mean.
Fungible:
An item that can be substituted or exchanged for any similar item. Fiat currencies like US Dollar, contain fungible units. For example, a dollar bill can be exchanged for another dollar bill.
Cryptocurrency tokens like Bitcoin, Ethereum, and MANA are all fungible because one token can be exchanged for any other token of the same currency.
Non-Fungible:
For non-fungible items, these have opposite characteristics definition: unique, irreplaceable, and non-interchangeable.
They are unique representations of goods or assets in the form of digital tokens. Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value.
The Basics
Let’s move forward now that you understand the concept of Fungibility.
The big appearance of non-fungible tokens has left many confused about what these tokens are and what they do.
Each currency, whether crypto or fiat, needs fungibility if it wishes to be seen and used as a medium of exchange.
Fungibility might be more important when it comes to cryptocurrencies since it allows them to maintain the legitimacy of interchangeability between different units.
Blockchain
Literally means a chain of blocks. When talking about “block” and “chain”, they are about digital information (the “block”) that is stored in a public database (the “chain”). “Blocks” on the blockchain are made up of digital information.
Specifically, consisting of three parts: Transactions (day, time, amount, etc.); Participants (digital signatures); and a Block to distinguish them from each other.
Ethereum
Ethereum is an open-source platform that enables thousands of decentralized cryptocurrencies and projects to be built and deployed on their open, public blockchain.
ERC-721
This is the seven hundred twenty-first proposal in the Ethereum proposal process (EIPs) to standardize how applications are made and how Ethereum will work.
Three Popular NFT Marketplaces
NFT marketplaces enable users to share their original pieces and also buy other’s work of art or collections.
Here are some of the most popular NFTs marketplaces out there right now.
Opensea
the most easy to use among the three. No verification type required; anyone can create an account and start minting NFTs.
Rarible
Similar to Opensea that is democratic and open. There’s much less noise here and not many collectibles because you have to pay for each artwork you mint.
Foundation
The most difficult to access among the marketplaces mentioned. The difficulty of getting here and the cost of gas for minting each NFT means that you generally find better quality art going for higher sums of money here.
As of writing, there are a few more marketplaces that are just starting to rise, however, unless truly tested, I don’t recommend new ones as there could be security issues that will arise in the future.
Learn more about NFTs
If you want to learn more about NFTs, you can read some of our blog posts about NFTs like the ones below:
===> What is an NFT?
===> The Different Types Of NFTs
===> Next Steps for NFT Newbies
And if you want a more in-depth discussion about NFTs and their basics, down to the more detailed explanation and technicalities, I invite you to our NFT 101 Course.
It’s for everyone and the goal of this course is to make learning NFTs easy, fun, and enjoyable. At the end of the course, you will be able to navigate NFTs more confidently and launch your own NFT project.
Check out the NFT 101 Course below for more information.
