NFTs or non-fungible tokens are digital assets that are unique and cannot be exchanged as one unit for another. They are stored on a blockchain network, which provides a decentralized way to guarantee their authenticity and ownership.
The compatibility of NFTs with other digital assets is ensured through a standardized format or protocol called ERC-721. ERC-721 is a smart contract standard that defines the basic interface for representing non-fungible tokens on the Ethereum blockchain. It specifies the functions that allow NFTs to be created, owned, transferred, and interacted with.
Using the ERC-721 protocol ensures that NFTs can be seamlessly integrated with other digital assets that are built on the Ethereum blockchain. This means that they can be used in different applications such as gaming, collectibles, art, and more. It also enables interoperability and cross-application compatibility, allowing NFTs to be transferred and used across different platforms.
Under the ERC-721 protocol, each NFT has a unique identification number, which is stored on the blockchain. This number ensures that each NFT is unique and cannot be duplicated or exchanged for another asset. The protocol also includes a set of standard functions to facilitate trading and other operations involving NFTs.
Overall, the compatibility of NFTs with other digital assets is guaranteed through the use of the ERC-721 protocol, which provides a standard format for representing and interacting with NFTs on the blockchain.
