I am a developer working on a NFT app development. I want to add NFT features to the app, but I am not sure where to start. Can anyone provide some guidance?
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It’s a great question, and it’s easy to see why people get them mixed up! Both NFTs and cryptocurrencies use blockchain technology, but their purposes and characteristics are fundamentally different. Here’s a breakdown
Cryptocurrencies (like Bitcoin, Ethereum, etc.):
- Fungible: This is the key. One Bitcoin is identical to any other Bitcoin. You can exchange them seamlessly, just like you can exchange one dollar for another.
- Divisible: You can divide cryptocurrencies into smaller units. For example, you can own 0.001 Bitcoin.
- Primarily a Medium of Exchange: Cryptocurrencies are designed to act as digital currency, used for transactions and store of value.
- Interchangeable: They are meant to be interchangeable.
NFTs (Non-Fungible Tokens):
- Non-Fungible: Each NFT is unique. It represents ownership of a specific, one-of-a-kind digital or physical asset.
- Indivisible (Usually): NFTs are typically whole units. You can’t divide them into smaller pieces (though, there are some newer exceptions called fractionalized NFTs).
- Represents Ownership: NFTs are used to prove ownership of digital items like art, music, videos, virtual real estate, and even physical items.
- Unique and Verifiable: They provide verifiable proof of authenticity and ownership on the blockchain.
In simpler terms:
- Think of cryptocurrencies like digital cash. You can swap them with each other without any difference.
- Think of NFTs like digital collectibles, like a rare painting or a limited-edition trading card. Each one is distinct and has its own unique value.