What are the candid different between NFT and Cryptocurrency.
Go Back🕒 11:59 AM
📅 May 31, 2025
✍️ By oluwafemighty
An NFT (Non-Fungible Token) differs from a cryptocurrency (like Bitcoin or Ethereum) in several key ways
1. Fungibility
1. NFT: Non-fungible each token is unique and cannot be exchanged on a one-to-one basis with another NFT.
2. Cryptocurrency: Fungible each unit (e.g., 1 BTC or 1 ETH) is identical in value and function to any other unit.
2. Purpose
1. NFT: Represents ownership of unique assets like digital art, collectibles, music, virtual land, etc.
2. Cryptocurrency: Primarily used as a medium of exchange, store of value, or utility token within ecosystems.
3. Structure:
1. NFT: Contains unique metadata and attributes, often pointing to digital content.
2. Cryptocurrency: Has no distinguishing features between tokens; all are the same.
4. Interchangeability:
1. NFT: Not interchangeable; each has different value and significance.
2. Cryptocurrency: Fully interchangeable; 1 ETH = 1 ETH, regardless of where it came from.
5. Standards
1. NFT: Built on standards like ERC-721 or ERC-1155 (on Ethereum).
2. Cryptocurrency: Typically follows ERC-20 (on Ethereum) or native blockchain protocols.
That's all about the differences between NFT and Cryptocurrency
I hope you learn something new
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