In the world of cryptocurrency, there are two types of tokens. One is fungible tokens, and other is non-fungible tokens. Fungible tokens are like currency. For example, you can replace $100 bill with any other $100 bill because they both have the same value. On the other hand, non fungible tokens cannot be replaced by any other token since they are unique. You can use a non-fungible token to represent any digital asset, and keep the token as a proof of ownership of that asset.
Trading non fungible really easy and simple, and they cannot be replicated as their uniqueness can be easily verified.
Where are some of the features of non-fungible tokens which determine their value. You can also visit Designer Daily for more details.
The utility value of non fungible tokens is highly dependent on the process they are used in. These tokens are used in tickets and game assets. For example, you can use non fungible tokens to buy weapons or any other unique feature of a game. Another aspect of their usage is that they can be utilized in another game as well. For example, let’s say the weapon you on can be used in another game. In that case, the value of your digital asset will be even higher.
However, the use in different games is still a relatively new feature, as developers will need to make a huge ecosystem of games to provide more playing opportunities to the players playing with non fungible tokens.
Their History of Ownership
In this huge case, the value of a non-fungible token Depends on the history of its ownership. For example, non fungible tokens issued by famous artists or companies usually have more value as compared to other tokens.
This is how non fungible tokens are highly valued these days.