Fungible & Non-Fungible Tokens

Some assets are fungible and some are non-fungible. But what does it mean? If you and one of your friends have bought two tickets to ride the subway, you can easily switch your tickets since this change will not affect the services you take from the subway. Whether you have your token or your friend's token, you can finally get on the subway and use the subway services; without seeing any difference in the tokens. These tokens are called exchangeable tokens because there is no difference between the tokens and you can exchange them easily.

Is this also true in buying cinema tickets? Every cinema ticket corresponds to a specific seat location within the cinema, indicating the designated row and seat where the ticket holder is permitted to sit. If you change your ticket and someone else's ticket, you get a different seat, which means that by exchanging tokens, you get a different service or asset.

Perhaps using the cinema example may not be the most concrete and relevant. Imagine you and your friend both purchased houses and each received a token representing your respective properties. Is it possible for you to swap your tokens? Your house may be worth three million dollars in a classy area, while your friend's house is valued at one million dollars and is located in an average neighborhood. It is not possible to exchange your tokens because they represent different tokens.

Now we're aware that there are two categories of tokens: fungible tokens and non-fungible tokens, short for NFTs.

The USDT token represents the US Dollar. In essence, if you possess two USDT tokens, their value is equivalent to two dollars.If you send USDT to someone and they later return the same amount to you, there is no distinction between the USDT you sent and the USDT you received.

It's important to note that these tokens can be divided. This means that instead of returning one USDT, your friend could give you half of a USDT and later pay you the remaining half. This introduces the replaceable token Jetton on the Ton blockchain.

Let's say, a painter has created a collection of 100 paintings and named each painting from 1 to 100. The owner of this collection registers all 100 paintings in the blockchain and creates 100 tokens to sell. You are attracted to drawing number 20, which shows a view of the sea, and your friend likes drawing number 35, which shows a view of the forest. Both of you buy these two tokens. If you give token number 20 to your friend and your friend gives you token 35, you will receive a painting with code 35 with a forest view which is not your painting. So your friend should give you the same token 20 to return your painting. Furthermore, these tokens cannot be divided or split. Hence, your friend cannot split the painting to give you half of the token when returning it. These tokens are called Non-fungible tokens, also known as NFTs in the blockchain, and are unique digital assets.

All in all,

NFTs are used as tokens for non-fungible assets, whether physical or virtual. The owner of each NFT has ownership of his assets and he can transfer the ownership of his NFTs to another by transferring and selling them.