Fungibility definition
Definition
Fungibility describes an asset where every unit is identical and can be perfectly exchanged for any other unit of the same type.
For example, one dollar bill is fungible with any other dollar bill. Fungible Tokens (like Bitcoin or ERC-20 tokens) are usable as money, but Non-Fungible Tokens (NFTs) are unique and cannot be exchanged 1:1.
For example, one dollar bill is fungible with any other dollar bill. Fungible Tokens (like Bitcoin or ERC-20 tokens) are usable as money, but Non-Fungible Tokens (NFTs) are unique and cannot be exchanged 1:1.
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