Before we go into the details of NFTs, it’s crucial to know the difference between fungible and non-fungible materials. A fungible item or token is one that may be swapped out for another unit of the same thing.
Consider the following scenario for all intents and purposes. A bitcoin is compared to another bitcoin in the same way that a British pound is compared to another British pound.
You don’t have to insist on your body repaying the loan with the same £10 if you give it a tenner.
Nonfungible items will not accept any £10 note as a form of payment.
On the other hand, they are not interchangeable and have specific traits that can be used to differentiate them.
Despite the fact that they may appear to be identical in the real world, nonfungible commodities such as paintings, concert tickets, and other such items exist.
In a similar spirit, even though two artworks appear to be identical, their levels of rarity might be substantially different. Concert tickets in the first row are far more costly than those in the back row.