Understanding the difference between fungible and non-fungible will make this easier to understand.
Fungibility
Looks thirst quenching
If I pour a bottle of water into a glass nothing really changes except that I moved the water. If I pour the water from the glass back into the bottle I just moved the water around again. I could go all day trading the water between the two cups and nothing will ever change (provided I don't spill). The same goes for how a currency should work. If I give you a 1$ dollar bill for a baseball card and then the next day you give me a 1$ dollar bill for a can of coke we have given each other the same thing even if they were different 1$ dollar bills! This is the definition of fungibility.
Non-Fungible
Sports, an American pastime
So what is the opposite of fungibility? How about sports cards? Would you be willing to trade me a Nolan Ryan card for Troy Aikman card? Maybe. Yes, each of these cards were made in a factory for pennies but they represent different people, sports, years, and have a rarity to them. If we exchange dollar Bill's we have (ideally) given each other the same thing. But trading Nolan for Troy is just as different as trading a cat for a dog or a pair of shoes for a shirt. They aren't the same or in other words they are Non-Fungible.
The Blockchain
The blockchain is a data base with unique features. A blockchain is capable of storing both Fungible Tokens and Non-Fungible tokens on its database. To make this easier a fungible token will be a “cryptocurrency” like: Bitcoin, Ethereum, Monero, Litecoin, and Dogecoin alongside of all the other thousands of coins/tokens found on CoinMarketCap.
A Non-Fungible token can be a variety of things but most fall into a few categories. They could be video game items like: Cards from a Digital card game (Ether Legends) Skins or guns from a first person shooter (Dissolution), or characters from an RPG (Forest Knight). It could also be Digital artwork (like Crypto Skulls or art from the group Super Rare) or collectibles like from the famous Crypto Kitties. Of course, in the future I think we will see NFT's for things like deeds to houses, cars, ownership of movies, music, books and more!
I am currently working on a project called Silica neXus. We are making a marketplace for buying, selling and trading NFT's specifically for video games. To learn more about it check out: Silica neXus Home Public -
