The future is Non-fungible

æternity joins the effort to digitize everything

The first time I’ve heard of the term Non-fungible tokens (NFTs) I immediately associated it with fungi, or the lack thereof. I’m well aware that these are not tokens unable to grow fungi, yet, I guess I will forever correlate the term NFT with mushrooms, nonetheless. When you look at some of the artwork that has been turned into NTFs however, the correlation may not be as far-fetched.

Etymology aside, non-fungible simply means these are not serially minted tokens, instead they are unique. Thus, these tokens are not a means of payment, although they can be traded. I believe the term token, in this case, is misleading as it implies a denomination of a cryptocurrency in most of our minds.

Digital ownership

NFTs are a digital embodiment of something created or existing in the physical or virtual world, generated by minting a special (non-fungible) token for it and linking it to a blockchain network.

As a comparison that might make the difference between fungible and non-fungible easier to understand, we can think about the difference between a cinema ticket and a plane ticket. The cinema ticket can be used by anyone regardless of who bought it — they are all the same — fungible. A plane ticket, on the other hand, cannot be used by anyone except the person it was bought for, as it is connected to their name and documents, making it non-fungible.

Some NFTs are digital in their entirety, like digital paintings, digitally recorded music, videos, and so on. Additionally, NFTs are a very clever way of providing non-digital entities with their digital, blockchain-supported identity, which allows their owner to have a blockchain certificate of ownership over them, but also, more importantly, it allows the owner to easily and securely sell their NFTs to ...

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æternity blog - Medium

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