Angel - Not A Bot
@sayangel
For the average consumer what exactly is the difference here? A tradable asset is a tradable asset is it not? To technical people I get there's a diff between an erc20 and erc721 but can someone help me understand the unlock for the masses? Not fud'ing just looking to learn!
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Zach
@zd
The biggest difference is the liquidity (or tradability) of the coin NFTs can have exactly one owner, which means that only one person can purchase it from that owner - this makes it hard to know the true value of that item and also makes it hard for the seller to find the right buyer. Fungible coins can be owned by many people, each holding a different amount. This means you can have a near infinite number of buyers and sellers at any moment in time, making it easier for the market to form and a "true price" to be found.
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Mercury60 🎩
@mercury60
Did I understand it correctly? That means only one person can own an NFT? And once someone mints it, others won't have access to it?
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Zach
@zd
An NFT is by definition "non-fungible", meaning it can't be duplicated. Some NFTs are one of one, meaning there is only one copy of that token, and therefore it is only held by one person. Zora experimented with "semi-fungible tokens" (ERC-1155), which they marketed as Open Editions. These were essentially NFTs that had a finite number of copies, meaning I could own five copies, you could own ten copies, etc. Each token was fundamentally the same, which is how we ended up where we are today where everything is becoming a fungible token. Hope that makes sense!
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Mercury60 🎩
@mercury60
Thank you for the explanations; I think I understand it now.
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Zach
@zd
From GPT
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