Non-Fungible Token Frequently Asked Questions
Here is a high level overview of what an NFT is, how it relates to the cryptocurrency ecosystem, and some common questions on cryptocurrency ecosystems and how users can interact with them.
Non-Fungible vs Fungible
In common talk, a Non-Fungible Token (NFT) unique set of data which can be photos, videos, audio and other formats, and it cannot be interchanged with another NFT even if both appear to be identical. Every NFT has a unique 'fingerprint' regardless of its contents. The easiest example to understand is the US dollar bill. Any dollar in your wallet can be used to pay for merchandise at the store. This makes all the dollars in your wallet fungible (interchangeable).
However if the merchant stated they will accept payment only with a dollar bill having the serial number 1234567890 then that specific dollar bill becomes non-fungible because there is only one of those dollar bills in existence. This is just a very simple, non-technical example and also it's not a real-world one because all merchants must by law accept any genuine dollar bill regardless of serial number (all dollar bills must be fungible) and no bill is more valuable than any other of the same denomination.
Every piece of NFT art is globally unique and thus cannot be substituted for another even if the art has an identical appearance, but generally NFT art pieces have unique appearances and characteristics although this is not a requirement.
Wallets - what they are and why you need them.
There are many different types of blockchain networks that support many different types of crypto assets.
Not all blockchain networks are compatible with each other, so if you have an asset on the Bitcoin blockchain then that asset cannot be taken to the Ethereum blockchain.
When a user wants to convert BTC (Bitcoin) into ETH (Ethereum) they generally involve the use of what is referred to as a swap, where you forfeit the original crypto in exchange for the new crypto.
Some exchanges perform swaps, as do some wallets and dedicated services like Pancake Swap
You have an NFT - now what can you do with it?
Your NFT and what you can do with it will vary and you should be aware of what these allowances and restrictions are.