In this bog we are going to see the difference between the fungible and non-fungible token. So lets start this blog
What is Fungible ?
- The quality of an asset that can be exchanged with another asset of the same type.
- fungible assets includes currencies , commodities and precious stones.
- Fungible token like bitcoin stores value
Example of Fungible Token ->
Lets suppose you have two 5 rupee coin, so you can easily exchange this with the another two 5 rupee coin .
suppose you have one 10rs coin , so you can easily exchange with two 5rs coin . At last both have same value .
What is Non fungible?
- The quality of an asset that are similar but not exchangeable.
- Non fungible are unique , requiring much more complex valuation before a sale and include things like real estate , art and sports cards.
- Non fungible token stores data like an academic title or an art work .
Example of non fungible - Let's suppose you have big house full of sofas , window , full furnished and on the other hand your friend or someone has small house , not full furnished , having only two rooms .You can't even thing of exchanging this , so they came under the non fungible item. same example suits for the car as well .
Applications of Fungible and Non fungible Token
- Non fungible token are unique that are linked to digital content providing proof of ownership .
- They have many use cases , including artwork , digital collectibles, music , and items in video game etc .
- While talking about Fungible Token ->This token just stores values of assets like bitcoin etc .
Both fungible and non fungible allow proper digitization and storage of real-world assets while keeping them safe at the same time.