Fungible

Fungible assets are those that are interchangeable and indistinguishable from one another. In the world of cryptocurrencies, fungible tokens, such as Bitcoin or Ethereum, are identical in value and function to each other. For example, one Bitcoin is always equal in value to another Bitcoin, making it easy to exchange and trade these assets without worrying about differences in value. Fungibility is an essential feature in currencies, as it ensures consistency and reliability in transactions.

Fungible tokens enable straight forward peer-to-peer trading and are a cornerstone of traditional financial systems and decentralized finance (DeFi). This property allows for large-scale liquidity and efficient markets, as users can easily trade or transfer identical units of a given asset.