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Non-fungible tokens or NFTs are one of the most revolutionary and popular applications of blockchain technology. They have revolutionized the way digital assets are owned and authenticated. To understand the fundamental difference between them and common cryptocurrencies, one must first understand the meaning of the words 'fungible' and 'non-fungible'.

1. Fungible vs. Non-fungible

Features	Fungible	Non-fungible
Exchangeability	One can be exchanged for another (all are equal).	One cannot be exchanged for another (each is unique).
Examples	1 Rs. 100 note or 1 Bitcoin.	Original painting of Mona Lisa or your house deed.
Price	All units have the same value.	The value of each token varies based on its rarity or quality.

2. How does an NFT work?

An NFT is essentially a digital certificate, which confirms ownership of a specific digital or physical asset. It usually follows the following process. When an NFT is created, a smart contract is written on the blockchain. It contains the name, description, and current owner information of the asset. The process of converting a digital file (image, video, audio) into a token on the blockchain is called minting. Once minted, it becomes permanent on the blockchain. Since it is on the blockchain, anyone can verify who the real owner of that particular file is. It is impossible to forge or change the information.

3. Main Areas of NFT

NFTs are not limited to art or photos; their use is expanding day by day. Digital art is the most popular use. Artists can sell their digital artwork as NFTs. This allows them to reach collectors directly and receive royalties on each resale. Gaming — Special characters, weapons, or virtual land in games are bought and sold as NFTs. Players can earn real money by selling items from one game to another or on the marketplace. Sports cards or video clips of historical moments. For example, 'NBA Top Shot' where special moments from basketball games are sold as NFTs. Musicians can sell their albums directly to fans as NFTs. Even event tickets can be given away as NFTs, which prevents black market or counterfeit tickets.

4. Why are NFTs important?

Artists receive full value for their work without the need for a middleman (gallery or music label). In the digital world, it was very easy to copy before. NFTs have created digital scarcity for the first time. Through smart contracts, the artist will automatically receive a certain percentage (e.g. 10%) of the sale price in his wallet every time his work changes hands.

5. Challenges and criticisms

There are also some negative aspects of the NFT world. Volatile markets can increase or decrease prices very quickly, which is risky for investors. Someone can steal someone else's work and mint NFTs, although blockchain provides transparency of the original owner, legal complications still remain. NFT minting on networks like Ethereum used to consume a lot of electricity, but now many networks (e.g. Ethereum 2.0, Solana) are using environmentally friendly methods.

Conclusion

NFTs are not just a means of buying and selling images, they are a new standard of digital ownership. They can also be used in real estate, identity verification, and legal documents in the future. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

Me behind the camera & keyboard

I’ve always loved sharing my passions with you — from crypto and movie reviews to photography, storytelling, and blogging. Now, continuing that creative journey, I’ve stepped into a brand-new world — Gaming ! 🎮 | 🎥 On my YouTube channel Bokhtiar The Survivor — I’m consistently working to bring you the raw thrill of my gaming experiences — the emotions, the excitement, and those unforgettable moments that make every game feel alive.