Explore NFTs and cryptocurrencies, their differences, and how they function in the blockchain world
The two most common blockchain-based applications are cryptocurrencies and NFTs. Although there is a lot of overlap in how the two operate, there are also significant variances. Both cryptocurrencies and NFTs have a wide range of applications. Cryptocurrency is a digital form of money that uses encryption and blockchain technology to verify transactions independently of financial institutions. Unique digital assets that are maintained on a blockchain and cannot be copied or cloned are known as NFTs. Let’s analyze the differences between NFTs and cryptocurrencies in more detail.
What are NFTs?
NFTs, or non-fungible tokens, are distinct digital assets without a physical form, encompassing various media like images, music, videos, collectibles, and more. Virtually any digital item, from virtual characters and real estate to original social media posts, can be transformed into and acquired as NFTs. These unique tokens are stored on distributed ledger technology, often using…