As more news comes out about prices rising and falling, almost like the tide, it can leave most of us with more questions than answers. Undoubtedly, NFTs might be the most confusing thing in the blockchain space. In this blog, I will examine the differences between fungible and non-fungible assets and explain NFTs.
All About NFTs
The internet doesn't entirely operate the same way as the real world, making things tricky. In the physical world, when you purchase something, such as a pair of shoes or even a cake, that item typically has unique qualities and a finite quantity available. After paying, you're issued a receipt or piece of paper showing that you're now the property owner.
Most people think NFTs are art pieces, whether digital cards, pieces of art, or even music. In reality, NFTs are more like digital certificates of authenticity than virtual assets. NFTs are attempting to test this idea of "proof of ownership" regarding the World Wide Web.
NFTs haven't faced any legal tests to see if the courts see NFTs as the same as physical receipts. Regardless, NFTs are sold across many online marketplaces in exchange for cryptocurrency. Below is a list of the different forms that NFTs represented in:
Collectibles such as trading cards
Virtual items within games
Virtual land in metaverses
Deeds for real estate
Advocates for NFTs state that these revolutionary digital assets provide another layer of security regarding proof of ownership required in the virtual world. The tricky part is that NFTs aren't regulated in any way and aren't legally considered a binding contract.
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