Search
Generic filters
Filter by Categories
Accounting
Banking

Forex




Fungible Token


Fungible Token

Concept

A token that is created and issued in interchangeable and standard units. As a digital asset, the units function as store of value of equal proportions, as well as being a unit of account or medium of exchange for transactions taking place on a blockchain. A fungible asset can be a cryptocurrency like Bitcoin, the unit of which is interchangeable and can be used for  transactions like any other units of the same coin, no matter where these units are issued. The units have equal value and function on a standardized set of rules for exchange and behavior on the network.

Features

Fungible tokens or assets are, by nature, divisible and non-unique. For instance, fiat currencies like the dollar are fungible: units (one dollar note) has the same value everywhere. A fungible token can also be a cryptocurrency like Bitcoin: 1 BTC is worth 1 BTC, irrespective of the place of issue or the place of use. Nonfungible assets/ nonfungible tokens (NFTs), on the other hand, are not interchangeable- these items are unique and non-divisible (as units). They can be perceived as a type of deed or title of ownership of a unique, non-immutable item. For example, an artwork is nonfungible, as it is unique and cannot be issued in similar units. Blockchain is the underlying technology that can easily be used as a proof of ownership of a digital item. Fungible assets differ from nonfungible assets in terms of the content subject-matter of storage. While fungible tokens are a store of value, nonfungible tokens are used to store data like a deed of ownership, intellectual property or an artwork. Fungible resources increases the efficiency of the exchange and trade processes, as standard units of value can be created either representing whole assets (as units) or portions thereof (also as units).



ABC
FOREX (foreign exchange) revolves around trading the foreign currency exchange in the over-the-counter market. It is where a given currency is converted to ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*