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You can even divide that $10 bill into ten $1 bills or two $5 bills without changing the value that you own. You can trade your $10 bill for my $10 bill and we would be left with the same value. or Fort Worth, Texas, it is still worth $10 wherever you go. Regardless of whether your $10 bill was printed in Washington D.C. Classic examples of fungible assets are currencies and stocks. In the simplest terms, fungible means interchangeable. As the Web3 landscape continues to evolve and expand, we are seeing more examples of these two token types being brought together to support the growth and utility of individual NFT communities.

Then came NFTs which brought culture and strong communities to crypto. Fungible tokens came first and challenged the need for financial intermediaries (👋 DeFi). Tokens can be broken down into two unique categories: fungible and non-fungible (NFTs). What is new is that Web3 enables tokens to no longer be static objects, but rather empowered by formulas and logic through smart contracts that run on blockchains. From the earliest forms of currencies to casino chips, the idea of value representation and exchange allowed communities to flourish and marketplaces to develop. This concept isn’t new to Web3, it has been around for thousands of years. Within this world, a token is defined as a representation of value or utility within a given ecosystem. In Web3, tokens power everything around you. Graphic comparing fungible vs non-fungible assets in both the digital and physical world