GlossaryBeginner
Fungible Token
A token where each unit is identical and interchangeable with any other unit.
A fungible token is one where every individual unit is identical to and interchangeable with any other unit of the same token, similar to how one unit of a currency is worth the same as any other.
Most cryptocurrencies used as money or as a general-purpose asset, such as Bitcoin or Ether, are fungible tokens, in contrast to non-fungible tokens, where each unit is distinct.
Examples
- One bitcoin is interchangeable with any other bitcoin, making it a fungible asset.
- Fungibility is a key property that lets a token function well as a medium of exchange.