While many people are focusing on decentralized finance (defi), the unchangeable token / unique token / unique token (NFT)
The so-called unique token (NFT) idea has attracted a lot of attention since the concept of verifiable digital scarcity was first introduced. Unique tokens, which are quite remarkable when combined with crypto art, opened the door to a new sector.
This year, the popularity of NFTs has grown significantly as the concept sees a large amount of funding flowing into the industry.
NFT technology became popular years ago thanks to Bitcoin’s colorful cryptocurrency technology, and today a large concentration of NFT is hosted on the Ethereum blockchain. However, other blockchains are trying to take advantage of the idea of creating unique, rare and indivisible token assets.
What are NFTs?
Let’s take a look at the NFTs that a cryptocurrency trader named CrypTurist on Twitter mentions with knowledge:
“The English word literally means Non-Fungible Token, meaning simply a limited edition, unique, unique token. Collectible Tokens can also be described as collectible digital assets (#collectibles).
The most important difference between Coin and Token is that Coins are developed in their own blockchain network. Btc – Bitcoin blockchain, ETH – Ethereum blockchain, AVAX – Avalanche blockchain as a good example for coins.
If a coin is Proof of Work (POW), it can be earned by mining and if it is Proof of Stake (POS) by staking. The peer-to-peer networks of these blockchains are open to everyone and are secured by mining or staking, depending on the blockchain consensus used.
Tokens are developed on a 3rd party blockchain. Hundreds of tokens such as #DAI, #COMP, #BAT etc. are examples. These tokens do not have an independent blockchain and users can send their tokens to another person on the condition that they pay gas fees on the #ETH network for token transfer.
In addition, most tokens cannot be produced by mining or staking, they cannot be earned, but instead have a fixed supply and can be bought by trade. Coins are always exchangeable and exchangeable with another coin on the same blockchain for the same price as “Fungible” in English.
1 BTC is always equal to 1 BTC. Tokens, on the other hand, can be exchangeable or non-exchangeable. ERC-20 tokens are the most common of exchangeable tokens, while ERC-721 tokens are the most common example of immutable tokens. ”