[NFTs] Putting the FUN in Fungible
NFT ( *N*on *F*ungible *T*oken ) – A technical term for a unique digital asset, such as a trading card, game character, or artwork.
The term FUNGIBLE means that two assets are interchangeable, such as a dollar bill, which can be traded freely back and forth without any value changing hands.
A NON fungible asset is something which has its own individual value.
Example: Mr. Vitaliq is a Pokemon Cards collector.
He owns two Charizard First Editions in perfect Mint Condition. These two Charizards are both the same asset – First Edition, Mint Condition, and he has two of them. This is an example of a FUNGIBLE asset.
Then Mr. Vitaliq meets Ser Satoshi Nakamoto and asks for his autograph on ONE of the Charizard cards. Now Mr. Vitaliq owns two DIFFERENT assets.
Both are “Charizard First Edition Mint Condition”, but ONE is also “Signed by Satoshi”.
Therefore, the signed-by-Satoshi Charizard is now NON FUNGIBLE, because the signature makes it unique compared to any other First Edition Mint Condition Charizard”.