A Fungible Token is a type of digital asset, typically built on a blockchain, that can be exchanged or traded for another token of the same type without any difference in value. In other words, each unit of a fungible token is interchangeable with any other unit of the same token.
For example, if you have one Bitcoin and I have one Bitcoin, we can exchange them with each other without any distinction between the two. This is because each Bitcoin is considered equal in value to any other Bitcoin. The same principle applies to other fungible tokens like Ethereum or stablecoins.
Fungible tokens are widely used in cryptocurrency exchanges, decentralized finance (DeFi) platforms, and various other digital asset platforms where seamless trading and interchangeability are important. Non-fungible tokens (NFTs), on the other hand, represent unique digital assets that are not interchangeable with each other.
