There are many claims and myths behind NFTs aka non fungible tokens therefore in this article it’s all going to be about crushing misinformation regarding the use of NFTs. so, without further delay, let’s get into the main topic!
A Type Of Cryptocurrency and a Blockchain
Well, truth to be told, the latest NFT news actually narrates a different type of story when it comes to this ridiculous claim that says the NFT is a blockchain or even some sort or type of cryptocurrency which is available in this digital platform. But on the contrary, the NFTs are not a type of cryptocurrency nor is it a blockchain. Yet here is the explanation behind this myth.
NFT is the term that many people associate with when it comes to blockchain technology to bitcoins which represent the cryptocurrency in a market. The one thing that people are not well aware of is the two aspects of blockchain and cryptocurrency which work in NFTs. Just because the NFT software makes use of these two mentioned software in its program, doesn’t mean that the NFT itself represents the cryptocurrency and also blockchains.
Blockchain in NFTs
The blockchains is known for its information storing, processing and conveying network. Therefore, if you are aware, the NFT uses the blockchain software order for its program to store, process and convey information to its users. Hence the NFTs use the blockchain technology in order to provide a permanent proof of ownership to its user.
Cryptocurrency In NFTs
As mentioned above, the NFTs and the Blockchain are two different things which have their own functionality, and the same goes with the NFTs used in cryptocurrency. To make it clear, the NFTs uses the cryptocurrency as their mediator in order to make payment or trading investment therefore, as much as how we are aware that the NFTs are a digitized platform, the same goes for cryptocurrency as this cryptocurrency is the fundamental and also the key access aka cash to things that people would want to get through this digital field. The blockchain on the other hand, works as a ledger to keep track of your transaction.
Cryptos and NFTs are Two Different Assets
NFTs in nature are referred to as non fungible, which means it is irreplaceable and has a unique value on it. Therefore, the artwork or the minted digitized artwork that we can find in many NFT platforms are an example of an non-fungible asset as it there are no possible where of a similar artwork to exist in its platform.
Although the use of blockchain does exist in the NFTs the one thing that people should be aware of is the fungibility. It is very clear that NFTs are not fungible but on the contrary, cryptocurrency are considered as fungible. How, well simple.
For example, one ringgit Malaysia that is from Melaka is the exact same amount and worth when it is used at Kuala Lumpur. The cryptocurrency is known to be interchangeable, and non-unique as you can trade it with the exact amount from people regardless from where and when it was created from.