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Non fungible tokens NFTs) in the spotlight

Published: 2021-07-01

Organization: EY

Tags: nft. defi, EY, tokens

Overview: As the name suggests, NFTs are characterized by their non fungible nature In economic terms, fungibility is the ability of an asset to be exchanged with other individual assets of the same type for the purpose of transacting value Correspondingly, fungible assets in the same denomination imply the same value and include, for example, gold, a specific security or currency in FIAT/ crypto Conversely, this means, that NFTs are, by definition, not interchangeable, irreplaceable and unique .

The concept behind NFTs is to create a certain scarcity and shortage in the flood of the seemingly infinite supply of virtual items Accordingly, NFTs bring the promise of creating a "digital original" that is one of a kind and can be clearly attributed to the respective owner The resulting opportunities are currently being hyped up, especially in the digital art industry While in the "real world" there is always a unique original of a work, such as the painting that the artist created with his or her own hands, in the digital world there has so far been no counterpart in the sense of a "digital original". 

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