We often come across the terms fungible Tokens and non-fungible tokens in the blockchain. What are they? The following table explains what are they and how they differ.
|Fungible Tokens||Non-fungible Tokens|
A fungible token can be exchanged with any other fungible token of the same type. It is like exchanging a dollar bill with another dollar bill and the value is still the same.
A non-fungible token cannot be exchanged with another non-fungible token of the same type. It is like your passport or ID, they cannot be exchanged.
Each fungible token is identical to all other fungible tokens of the same type. For example, your one-dollar bill is the same as John’s one-dollar bill.
Each token is unique and different from all other tokens of the same type. For example, your bank account is not the same as John’s bank account
A fungible token can be divided into smaller units and the total value is still the same. For example, you can divide a dollar bill into two 50 cents or five 20 cents and the total value is still the same.
The non-fungible token cannot be divided into smaller units. The basic unit is one token and one token only. For example, your driving license.
The Ethereum Standard is used for issuance tokens to be used as cryptocurrencies.
The Ethereum Standard is used for the issuance of unique, non-fungible tokens. The most well-known case is CryptoKitties, which is a virtual collectibles marketplace where each kitty is unique.
Non-fungible tokens can be used in KYC (Know Your Customer) procedures, for academic degrees and other educational certificates, collectibles, badges, voting & elections, loyalty programs, in-game items, copyright, supply chain tracking, medical data, software licenses, warranties, and more.