NFTs stand for non-fungible tokens and are non-replicable, unique assets located on a blockchain. It cannot be exchanged and bought like crypto coins. NFT is one of the types of cryptography tokens that represents the ownership of rare assets such as art work or collectibles. Digitally represents real-world objects such as art, music, in-game items. NFTs are bought and sold online with cryptocurrency. They represent a certificate of ownership of an item. NFTs, which are seen as digital certificates, are considered as the digital reflection of works in the physical world.
What are the Differences Between NFT and Cryptocurrency?
The only similarity between NFT and cryptocurrencies is the blockchain technology they use.
Cryptocurrencies can be exchanged with each other. They are also equal in value. For example; One Bitcoin is always equal to another Bitcoin.
NFTs cannot be exchanged with each other. NFTs are not equal to each other like Bitcoin. It has a digital signature that prevents them from being equal.
How Does NFT Work?
NFTs; It uses “Blockchain” technology, which is a distributed form used by cryptocurrencies (such as Bitcoin, Ethereum). It is usually located on the Ethereum blockchain and is implemented according to the ERC-721 and ERC-1155 standards.
What is the ERC-721 standard?
ERC-721 is a standard that describes how to create immutable or unique Tokens on the Ethereum blockchain.
What is the ERC-1155 standard?
ERC1155 uses a single smart contract to represent multiple Tokens simultaneously. It is used in the video games industry.
