Non-fungible means that these tokens cannot be substituted by one another they are not interchangeable.

Non fungible token vs cryptocurrency. While the Ethereum-based ERC-721 remains the most popular NFT in the market there are several projects out there like RSK that have produced their own collectible tokens. Fungible tokens like ERC-20 tokens are interchangeable divisible and identical tokens that are useful as monies. So for instance currencies stock market shares bonds and commodities like gold silver and oil are fungible.

Why They Exist and Why They Have Value. Fungible vs Non-Fungible Tokens. Meanwhile non-fungible tokens like ERC-721 tokens are not interchangeable unique and not divisible that are useful as collectables.

ERC-721 tickets all have unique properties and data values. In this example the laptop is a collectible asset and we can classify all collectible assets as non-fungible. Basically the fungibility or interchangeability of a token depends on its use case.

Markshire Crypto Cryptocurrency and Fungibility Conclusion. Youre a proud cryptocurrency owner. Did you know that cryptocurrency tokens come in two basic flavors.

Having said that its easy for amateurs to confuse NFTs for cryptocurrencies. Lets directly compare a fungible token with an NFT using the following characteristics. Non-fungible tokens exist to communicate varying values between different assets that exist within the same ecosystem.

It provides the means to transfer tokens from one account to another to get the record of remaining tokens in an account identify the owner of a particular token and record the. Non-fungible tokens can only be traded. A token not only represents the value adequately its also a.