What does fungible mean?

Something that is fungible means that it’s identical to another item and can be swapped or exchanged for that item without either participant in the swap losing any value. Fungible refers to items or commodities that can be exchanged with other assets or commodities of the same type. For example, currency is a fungible asset because it can be exchanged for other currencies, goods, or pay for services.

How are fungibles and non-fungibles different?

Fungible tokens or assets are divisible and non-unique. For instance, fiat currencies like the dollar are fungible: A $1 bill in New York City has the same value as a $1 bill in Miami. A fungible token can also be a cryptocurrency like Bitcoin: 1 BTC is worth 1 BTC, no matter where it is issued.

On the flipside, something that is non-fungible cannot necessarily be easily exchanged for something of equal value. Art and collectibles are often considered non-fungible because of their unique properties. Because only one original exists, it has a distinctive property that cannot be easily appraised or exchanged for something like it.

Simply put, Non-fungible assets are unique and non-divisible. They should be considered as a type of deed or title of ownership of a unique, non-replicable item. For example, a flight ticket is non-fungible because there cannot be another of the same kind due to its specific data. A house, a boat or a car are non-fungible physical assets because they are one-of-a-kind.

The Table of Difference



Fungible Tokens Non-Fungible Tokens
Main Features Divisible Indivisible
  Non-Unique Unique
  Interchangeable Irreplaceable
Real-world Purpose Payment System Intellectual Property
  Store of Value Academic Title, Artwork, Music Composition, Gaming, Utility, Assets like stock & Shares, Access to a service i.e. a subscription
Technology used Own Blockchain Built on another Blockchain
Example of Tokens Bitcoin, Litecoin, ERC-20 ERC-721

The Future of NFTs

NFTs are set to revolutionize multiple digital markets and will facilitate transactions and improve interactions between people. As the world becomes increasingly digitized, NFTs can represent a viable solution for tokenizing ownership and property. Both fungible and non-fungible tokens allow proper digitization and storage of real-world assets while keeping them safe at the same time.

Contact us at Realxposure to learn more about NFTs.