Fungible
Table of contents
Fungible assets are items that are interchangeable with others of the same type and value. In crypto, tokens like Bitcoin and Ethereum are fungible because each unit is identical and can be traded evenly.
Why Fungibility Matters
Fungibility is essential for currencies and tokens meant for everyday transactions or trading. It ensures consistency in value and utility, making these assets easily exchangeable across platforms and users.
Real-World Context
Fungibility supports the seamless flow of assets in financial systems. Without it, each token would carry unique value, complicating transactions and undermining trust in its use as a currency.