NFT (Non-fungible token). Unlike other cryptocurrencies, NFTs are not interchangeable with one another. Each NFT is unique. NFTs can represent ownership over digital or physical assets (Phygital NFTs).
ERC-721 is a standard interface for non-fungible tokens. "Fungible" means interchangeable and replaceable. Most cryptocurrencies are fungible, for example, 1 Bitcoin can replace any other Bitcoin. However, each NFT is unique, it cannot be replaced by another. Every NFT is identified by a unique ID inside the ERC-721 smart contract.
ERC-1155 ERC-1155 is a standard interface for contracts to manage multiple token types, which means if the NFT smart contract uses ERC-1155 standard, that smart contract may include fungible tokens and non-fungible tokens, or semi-fungible tokens.
Fungible tokens are divisible, non-unique, and interchangeable. For example, a 1 USD bill is interchangeable and replaceable with another 1 USD bill.
Nonfungible tokens, on the other hand, are unique, non-divisible, and irreplaceable. They are usually considered titles of deeds or titles of ownership. For example, the Mona Lisa is one of a kind item that cannot be reproduced, interchanged, or replaced by others.
Useful NFTs are unique digital assets minted on the blockchain for some purposes. They must contain some practical and economic functions for some applications. Useful NFTs are, for example, Game NFTs, and Phygital NFTs.
Game NFTs: A game can offer a rare game skin as an NFT, and the player who holds the NFT can have some special power.
Phygital NFTs: They are virtual representations of physical items. The holders have not only the ownership of the NFTs on the blockchain but also the ownership of the real items in the physical world. The holders can trade their phygital NFTs on the marketplace, hold them for investment, or redeem the physical items in the real world.
Useful NFTs can be “Useful but make you rich” or “Useful and make you poor”.
Useless NFTs are unique digital assets minted on the blockchain, which have no practical functions or economic functions when users are holding them. Useless NFTs are collectibles, and only certain groups of people find them valuable. Some people will make useless NFTs just for fun, or self-satisfaction. Useless NFTs can be “Useless but make you rich” or “Useless and make you poor”.
Make you rich NFTs are the NFTs that for some magical reasons, or foreseeable reasons, can make you rich. Those NFTs are the NFTs you want to own and hold. But Bitcoin (BTC) is still a better choice if you want to HODL. Source: Trust me Bro.
Make you poor NFTs are the NFTs that have no value, and you better dump them before it is too late.
