Is NFT a Cryptocurrency?

When people talk about NFT they are most likely referring to Non-fungible tokens. A technology that runs on blockchains similar to cryptocurrency.

Is NFT a Cryptocurrency?

When the conversation about NFT starts it is safe to assume Non-fungible token is the topic however there is cryptocurrency called NFT which is not linked to the NFT that everyone is talking about. It is a currency that can be traded on exchange and is fungible. Not really a popular currency but does exist.


NFT is a non-fungible token, a digital wrapper that wraps itself around a piece of content in most cases art but can be any file a pdf a music file a anything digital really.  


The wrapper proves ownership and cannot be removed from the content once attached. The two items essentially become one and all is tracked and monitored on the blockchain. NFTs can exist in different blockchains the most popular being ethereum and then others gain some volume due to much lower fees such as Polygon Matic, Solana and Avalanche.  


There are also NFT’s that can cross between blockchains called Onichain NFTs. allowing owners to swap which blockchain the NFT resides on. The Omnichain NFT’s only live in one blockchain at a time, when a transfer from one chain to another happens copies are burned and a new NFT is created.


Added : 9th May 2022, Author NFTCalendar.wiki