You must have heard the term NFT, its Non-Fungible token, whats the difference between fungible and non fungible ?
Fungibility :
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.
Now to simply explain it we can interchange the fungible tokens with each other and their value will remain the same. It’s like interchanging 1$ for 1$. Both have the same value in the market.
How come bitcoin is fungible if its price is changing?
cause, here you are comparing two fungible tokens of different types with each other, the dollar and bitcoin. This change in value totally depends upon supply and demand. If demand for bitcoin is less and supply is more, its value will decrease and its value increases if demand is more and supply is less.
Non-Fungible
Non-fungible tokens will always have their own value and can not be interchanged with other non-fungible tokens. The tokens will hold completely different purposes and have unique characteristics.
Examples of non-fungible assets can be paintings, antique pieces, land properties, etc. You don't interchange one painting with another or one land property with another. You buy these types of assets with money, a fungible token.
The current NFTs are static NFTs, let's say you own one NFT of a bored ape collection. Its just a static image that sits like that for years. But what if I say it grows older as time passes or changes its outfits according to the weather conditions?
Interesting right?
That's called as dynamic NFT.
To know more about how the Dynamic NFTs work and how to mint one you can take this course on DAppWorld -
https://dapp-world.com/course/introduction-to-dynamic-nfts-IsYJ
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