What does Fungible mean?
Fungible tokens and non-fungible tokens (NFTs) are two types of digital assets that have different properties and characteristics.
Fungible tokens are digital assets that are interchangeable and interchangeable. This means that any one unit of the token can be exchanged for another unit of equal value. For example, a dollar bill is a fungible asset because it can be exchanged for any other dollar bill of equal value. Cryptocurrencies such as Bitcoin and Ethereum are also considered fungible tokens.
Non-fungible tokens (NFTs), on the other hand, are unique digital assets that cannot be exchanged for something of equal value. Each NFT represents ownership of a specific item or piece of content, such as a piece of art, a collectible, or a digital game item. Because NFTs are unique, they have a higher level of scarcity and can often be more valuable than fungible tokens.
One key difference between fungible tokens and NFTs is that NFTs are often used to represent ownership of unique items or content, while fungible tokens are used as a medium of exchange or as a store of value. Another difference is that NFTs are stored on a blockchain and can be bought, sold, and traded like other cryptocurrencies, while fungible tokens are typically used in transactions and do not have the same level of ownership or scarcity.