Fungible Token Vs Non-Fungible Token
The topic of Fungible Tokens and Non-Fungible Tokens definitely grips the attention of the audience and business people who are all involved in cryptocurrency space. First, we share you about the differences between Fungible Tokens and Non-Fungible Tokens. Then the FT & NFT token model started to take over. And now there's a most important role in the industry that many start-ups to large business industries are willing to utilizing both tokens depends on their business needs.
So, here may we present you the difference between Fungible Tokens vs Non-Fungible Tokens and it’s benefits!
The potential of blockchain technology is much more than digital assets like cryptocurrencies. It will allow folks, startups, business industries to put their personal data like their personal IDs, certificates, company properties data, registration data, real estate data and other important information of the real world assets on the blockchain network. Currently, this is what is making a lot of buzz. Imagine having your company issued on the blockchain as a digital data that is known by all authorities around the world — no need to translate, validate, verify it. While everybody is discussing this, how can this possible? The technology which made that possible and we believe they are the future of the blockchain economy.
Let’s talk about the difference between the fungible tokens and non-fungible tokens!
About Fungible Token
Fungible cryptocurrencies mean the vast majority of tokens on the crypto market. Fungible tokens are digital assets built so that each individual token is equal to the next.
For example, fiat money is fungible as $30 notes are interchangeable with all other (real) $30 notes. furthermore, one Bitcoin is equal to one Bitcoin, and it’s equal to all other Bitcoins.
This makes fungibility completely essential to the concept of currency, whether they be crypto or otherwise.
Fungibility is the necessary feature of any currency which including fiat or digital currency, as it makes it exchangeable, divisible into units, and able of storing value. Fungibility is an attribute found in Bitcoin, ZCash, Ether and any ERC20- based tokens. If you send someone 1 Bitcoin, Ether or Zcash, and get one back, you wouldn’t notice any difference. The value is the same, indifferent of its provenance.
These kind of trade-able tokens are fungible tokens — they do not hold any sort of unique data within the token. Just a blank token that can be traded interchangeably. So Binance’s Binance Coin (BNB) is an ERC-20; Bodhi’s BOT is a QRC-20; and NEO’s Bridge Protocol is a NEP-5 token.