Blockchain technology is widely associated with the exchange of interchangeable digital assets, from payment systems like Zcash (ZEC) and Libra to platforms like Ethereum and Substrate, using what are known as fungible tokens. An item that is fungible is interchangeable with another identical item. Your dollar bill and my dollar bill, your Bitcoin (BTC) and my Bitcoin, are all worth the same amount.
However, nonfungible tokens are not worth the same as any other token or currency, even one that may seem similar. While this characteristic may appear impractical — especially considering the trading utility of tokens — it is a very desirable feature if the goal is to protect the value of an asset. For this reason, nonfungible tokens have been revolutionizing the ownership of tokenized art and intellectual property.
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