What is Fungibility

An asset is said to be fungible if it can be used interchangeably with another asset of the same type. For example, money can be considered fungible, because a one-dollar bill can be replaced by another one-dollar bill, even if it is not the exact same one.

 

Fungible tokens are identical non-unique tokens, meaning they are equivalent and substitutable. Cryptocurrencies are fungible tokens.

Fungibility

An asset is said to be fungible if it can be used interchangeably with another asset of the same type.

Related terms

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