Fungibility Explained

What Does Fungible Money Mean?

Two fuels with similar chemistries are likely to be fungible with each other, while two fuels with different chemistries are less likely to be fungible. Catalysts are ERC-20 fungible example tokens that define ASSET’s tier and scarcity on the Sandbox Marketplace. Catalysts essentially add empty sockets to the NFTs that can be further filled with Gems.

Meaning Of Fungible In English

Ethereum was the first blockchain to support smart contracts. Smart contracts are pieces of code that deploy movement of money when a specific condition is met. On July 30th, 2015 the Ethereum Network was launched by Vitalik Buterin.

Some people get confused when they are trying to learn how fungibility works because prices can be different around the world, even when a commodity or currency is fungible. For example, there can be wild price fluctuations for goods bought with a currency, even if that currency is fungible. However, it is not just currencies that are fungible, it is also things like precious metals, bonds, company stocks, and other commodities. But just because a thing may be highly desired and sometimes fungible example used as a means of exchange does not mean that it is necessarily fungible. The reason why diamonds are not fungible, or at least nowhere near as fungible as other things like precious metals is because diamonds of the same size are not interchangeable. This is because things like cut and clarity can dramatically alter the individuality of a diamond. Like the above commenter I too caution about tax implications in selling in a brokerage account if it has appreciated a lot.

Looking For Sentences And Phrases With The Word Fungible? Here Are Some Examples

More Meanings Of Fungible

The Ethereum network is a decentralized platform that allows anyone to build decentralized applications or cryptocurrencies (Ethereum tokens e.g. BAT, VET, OMG) on top of the network. The Bitcoin blockchain allows users to send and receive transactions. Put simply, it makes it possible for people to transfer money from party A to party B, and vice versa.

Pipeline operators are generally reluctant to transport ethanol because of the possibility that its unique chemistry may pose a corrosion risk. Fungibility is a word rarely heard on the street, but it is common fungible example verbiage in the oil refining industry. It refers to the ease with which two fuels can be blended together without raising concerns about how the blended fuel will behave in pipelines, tanks and engines.

The viability of pipelining ethanol has been studied and debated for years, and defendable arguments have been made on both sides of the issue. However, until sufficient data and experience are acquired to definitively establish its viability, pipelining ethanol is unlikely to be as widely practiced as pipelining gasoline. The presence of oxygen-in combination with ethanol’s small molecular size-gives ethanol chemical properties that differ sufficiently from those of gasoline to result in a major fungibility issue.

• A financial instrument is considered fungible if it can be bought/sold on one market or exchange, and then sold/bought on another market or exchange.
• It is precisely this variety that gives this token a specific identity that separates it from all other tokens of the same type.
• In trading, fungibility implies the ability to buy or sell the same financial instrument in two or more different markets.
• When you hold a token representing a classic car, you can store with it its unique physical characteristics, successive owners, inspections, incidents, police reports, and so on.
• In creating an NFT of 500 total supply, the –total variable property is determined as follows.
• We were thinking of renaming the WBS “adventure time” , but someone beat us to that name….

Each house, flat or piece of land would be represented by an individual token with a well-defined owner. The most distinctive characteristic of NFTs, in my view, is that they represent unique things of some type. They are the ideal way to digitally represent a real-world asset. Well, the initial use-case of blockchains, and still the most recognizable, was to emulate currencies. If you buy 35 fungible example ordinary shares from company X at the London Stock Exchange for £100, 30 later in Amsterdam for £87, and then sell 15 in Paris for £42, you’ll come out holding 50 shares after spending £145. The word ‘Fungible’ was not invented by the blockchain community. In my view, it is so specialized and rare in everyday life that it is one of those jargon words that only make the matter more obscure.

Contract size could be different, minimum price fluctuation or method of quoting could vary, etc. It does not matter which 1,000 yen note I use to pay for goods, or if I use two 500 yen coins instead. The line between fungibility fungible example and non-fungibility can be a thin one, and there could be certain exceptions, which we will cover at the end of this article if you bear with us. Substantially fungible marketplace item produced to satisfy wants and needs.

Money Is Fungible: Why Bucket Plans Don’t Make Sense

Sports NFTs are also becoming popular with successful athletes becoming tokenized on the blockchain, the value being determined by their performance. Each ticket is similar, however each one holds unique information to the registered owner of the ticket on the blockchain. The immutability of blockchain technology prevents counterfeit tickets and collectibles, with tokenized fungible example sports game tickets being issued on the blockchain, a perfect use-case for an NFT. Blockchain gaming can allow players to securely trade in-game assets and provide a layer of authenticity and verifiability to players. Gaming accounts that have excelled through a game can be a hot commodity for those who don’t want to put the time in to unlock bonus features.

The 2004 holiday was supposed to prevent them from doing these things, but money is fungible, so there was no realistic way to stop it. Diamonds are not fungible and can’t be easily exchanged with each other. The New Mathematics of Chaos, the mathematician Ian Stewart argues that fungibility applies to science as well. The example he uses is that subatomic particle theory is fungible when studying molecules “provided it led to the same general feature of a replicable molecule.” The most common form of this that I see is friends paying off mortgages because it feels good to be debt free. Often it may not be but all personal money and investments should be looked at together. So while paying a 7.5% interest loan on your 401k will require a larger monthly cash payment, all that is doing is putting more money into your 401k.