CoinEx Institution: Do You Really Know What an NFT Is and How It Works?

What is an NFT?

Before we get to know the NFT, we need to understand what an FT is. The FT stands for the “fungible token”. A fungible token is a token replaceable with another one identical to it, which resembles the real-world legal currency and is easy to transfer and circulate. Therefore, the FT is also called the “on-chain currency”. It could be the native token of a blockchain, such as BTC and ETH. It may also serve as the contract token on a public chain, like ERC20 tokens on Ethereum. An FT is characterized by fungibility and divisibility. Fungibility means that, for example, 100 BTC in your hand can be replaced by 100 BTC from any other person. Divisibility means that 5 BTC can be split into 10 units of 0.5 BTC.

Why do NFTs exist?

Here are examples from three industries.

Explore the origin of NFTs

The growth of NFTs can be divided into four stages, that is, the embryonic stage, budding stage, growth stage, and the ongoing stage of explosive expansion.

What can we do with NFTs?

NFT + blind box

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