Fungible token

A fungible token is a digital asset that is interchangeable with other identical tokens or assets. This means that each unit of the token is equivalent to another and can be exchanged for each other without any difference in value or function. For example, a fungible token can be used as a form of currency, represent an asset or commodity, or be used for governance in a decentralized organization. Fungible tokens are essential for creating liquidity and enabling seamless transactions on blockchain networks. With fungible tokens, buyers and sellers can trade without worrying about the unique characteristics of each token. Additionally, fungible tokens provide a standardized value, making them more easily traded and accepted across different platforms and ecosystems. The most common example of a fungible token is ERC-20 tokens on the Ethereum blockchain, which are used for a variety of purposes such as fundraising for new projects or purchasing goods and services.