XX26005 Fungible and Non-fungible Entities. V01 080226
A fungible thing is something where each unit is interchangeable with any other unit of the same kind , with no loss of value or meaning. If you swap one unit for another, nothing changes . Simple definition Fungible = interchangeable One unit can replace another perfectly . Clear examples of fungible things • Money One $10 bill is equivalent to any other $10 bill. • Commodities Oil, wheat, gold (of the same grade). One barrel of Brent crude is the same as another. • Shares of stock One share of Apple stock = any other Apple share. • Electricity One kilowatt-hour is the same no matter where it comes from. Non-fungible things (the contrast) These cannot be freely swapped without changing value. • A specific house • An original painting • A signed first edition book • A particular editor’s judgment or taste • A person’s experience or skills This is why NFTs are called non-fungible tokens — each one is meant to be u...