AS TECHNOLOGY DEVELPOS MORE AND MORE SO DOES THE WORLD WITH IT
As technology grows more and more so does the world with it. They are jumping from traditional to digital wallets which has both fiat currency as well as crypto. One should always be aware of the options available as there are too many available at the market today. Digital currency is nothing but the electronic form of fiat money which is issued by governments. Crypto is a non-physical currency which is issued by a private system it is decentralised and not regulated by any government and it runs on blockchain technology. NFTs or Non-fungible tokens are digital assets that depict real world things like music, art, memes, fashion etc.
Digital currency is simply an electronic form of real-world money. A person can purchase products conduct transaction using digital currency in any part of the world even if in reality digital currency doesn’t have any real-world physical attribute. Even though digital currency doesn’t need any encryption users will require different type of secure passwords to protect their digital wallets from theft or hacking.
Crypto runs on blockchain technology that records and stores data on every transaction created in a public ledger which can be attained by anyone. It is a decentralised system which isn’t controlled by any centralised regulation. Every transaction is recorded in a decentralised ledger which is available for everyone to witness cancelling the requirements for a central authority. Unlike digital currency, it is protected by tough encryption.
NFTs or Non-fungible tokens
NFTs or Non-Fungible token is a unique digital asset which depicts real-world material. NFTs is not usually interchangeable and are quite different from cryptocurrencies which are fungible tokens. So generally, NFTs are handled by a digital ledger and every transaction is done online.
The main difference between all of them is that unlike crypto and digital currency NFTs cannot be exchanged for each other as they are a one-of-a-kind real-world asset. Whereas, crypto and digital currency can be exchanged as there will be no loss to their value. Digital currencies are centralised are handled by authorities like banks and governments that keep a track of the transactions that take place. Cryptocurrency and NFTs are decentralised that run them. NFTs are available through a digital public ledger unlike crypto.