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The Composable Infrastructure Company

Altered goods, such as opened, stained or return packages, do not hold the same value as their unopened or clean peers, and are therefore not fungible anymore. Anything we want to use as money has to be fungible, whether it be bags of saffron, shells, beads or gold bars. Adj. exchangeable or replaceable, in whole or in part, for another of like nature or kind. Fungibility refers to an asset’s ability to be exchanged for something else of equal value. Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own.

fungible meaning

In trading, fungibility implies the ability to buy or sell the same financial instrument in two or more different markets. A financial instrument is considered fungible if it can be bought or sold on one market or exchange, and then sold or bought on another market or exchange. Despite costing less than 5 cents to make, a 1952 Mickey Mantle rookie card sold for $5.2 million.

Even though large generative projects are preferred by collectors, there’s not always safety in numbers, and no NFT project is entirely without risk. In fact, many projects have fallen apart due to rug pull scams. A rug pull occurs when the project creators take the investment money for the project and disappear.

Words nearby fungible

NFTs have a nuanced relationship with the assets tied to them. While an NFT is designed to represent the original asset on the blockchain, the NFT itself is seen as a separate entity from any content it contains. Throughout this article, we’ve often compared NFTs to trading cards, and that analogy holds true here as well.

The Data Processing Unit has gained recognition as the coveted third socket in data center servers. Something is fungible if one unit of that product is substantially equivalent to another unit of the same product that has the same quality at a specific time and place. Diamond quality varies considerably among stones – it is virtually impossible to find two completely identical – and therefore equal – stones. If I bought ten Microsoft shares in 2006, another ten in 2007, and another ten in 2008 – I bought them at different times – they are all fungible, regardless of when I bought them. If two manufactured products are fungible, they are treated as commodities and must compete on the basis of availability and/or price. However, the ultimate value of the diamond ring is based on several criteria, including the clarity of the diamond, how the diamond is cut, and what kind of metal the ring is made of.

NFTs have become a popular way of offering digital assets as collectibles. Professional sports leagues such as the NBA and NFL have offered game highlights as NFTs, artists and musicians have released their work as NFTs, and even memes can be minted in this digital format. However, the tokens actually got their start nearly a decade earlier. Over the next two years, several other NFTs were launched on pre-Ethereum blockchains.

  • In 2021 Merriam-Webster, the dictionary publisher , further solidified the digital asset’s public presence and cultural acceptance by auctioning off for charity an NFT of its new definition of NFT.
  • The line between fungibility and non-fungibility may be a thin one.
  • We’ve created a new place where questions are at the center of learning.
  • It pays homage to Satoshi Nakamoto, the person or group that created Bitcoin.
  • Even though large generative projects are preferred by collectors, there’s not always safety in numbers, and no NFT project is entirely without risk.

For the latter, consider a few of the world’s largest NFT marketplaces. OpenSea is the most popular NFT marketplace, with over 1 million active user wallets on the platform. LooksRare and Rarible are two of the most formidable OpenSea competitors. NFT Ownership also comes with social benefits, as many creators have turned their NFT projects into vibrant communities. The Bored Ape Yacht Club is, perhaps, the best example of community building in relation to an NFT project. Collectors get access to a members-only discord, exclusive merchandise, a vote in the future of the project, tickets to virtual meetups, and more.

fungible

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fungible meaning

Money is a medium of exchange that can be used to facilitate transactions for goods and services. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.

The Fungible DPU unlocks game changing performance that translates to infrastructure that is highly reliable, secure, agile, scalable and cost-optimized. If, on the other hand, I was not happy with a brand new red BMW 3 series that a dealer sold me, and took it back and complained, I would probably be happy if they offered to replace it with another identical one. If something can be easily exchanged for money or another good it is liquid.

Fungibility can be used to describe certain tasks that can be divided up into interchangeable pieces that are not interdependent on the other pieces and are easily parallelized . Imagine a 100 foot ditch needs to be dug, and a worker can dig a 10 foot ditch in one shift. How To Mine Bitcoin And Other Cryptocurrencies Now imagine Alice lends you her car, a brand new red BMW 3 series. In theory, a brand new car is interchangeable for another car of the same brand and model. One bag of Corn Grade 2 can be swapped for another bag of the same corn, or two smaller bags of half the weight.

It uses generative scripts to create unique works of computer-generated art. Simply select a project that you like, and then mint an NFT from that collection. Your result will be randomly generated on demand, so you won’t know exactly what your NFT will look like until you make the purchase.

What does fungibility mean in trading?

Similarly, individual shares in the same company are also fungible because they offer the same amount of ownership to the holder. Fungible—which derives from the Latin verb fungi, meaning «to perform» —is a word that often shows up in legal and political contexts. Something fungible can be exchanged for something else of the same kind. For example, when we say «oil is a fungible commodity,» we mean that when a purchaser is expecting a delivery of oil, any oil of the stipulated quantity and quality will usually do. It doesn’t matter what twenty dollar bill you get—it’s still worth the same amount as any other twenty dollar bill. In contrast, something like a work of art isn’t fungible; a purchaser would expect a specific, identifiable item to be delivered.

The fungibility of money refers to the fact that all money is the same. It doesn’t matter whether you have one $100 bill or one hundred $1 bills. In the same way, the source of your money doesn’t impact how you can use it. Non-fungible goods are any products that can have a noticeable difference in quality or are not interchangeable for some other reason. For example, you can’t take any two watches and expect them to have the same quality and value. The raw materials and craftsmanship that go into making them have a significant impact on the quality of the finished product.

From second to second, there may be small discrepancies, as the currency rate changes and the stock is subject to its own price changes from buying and selling pressures. If traders see a large enough arbitrage opportunity to make a quick profit, they will step in. This pushes the underpriced market up and the overpriced market down , bringing the two markets back into equilibrium. In simplest terms, fungible securities allow investors and speculators to buy low and sell high to make a profit.

fungible meaning

Despite the explosive popularity we’ve seen in the past few years, NFTs are still in their early stages, and it’s never too late to get started. From Bored Ape Yacht Club and CryptoPunks to buying NFTs from your favorite brand or artist, NFTs can be a gateway to a different community and lifestyle. In all likelihood, we’ll continue to see more quirky and innovative NFT uses, as brands and independent creators push the boundaries of the collectibles market even further in the years to come. Some of the world’s most significant, real-life cultural events have been turned into NFTs and sold for millions.

We simplify NFT news into actionable insights every week

This works through a process known as «arbitrage.» A trader takes advantage of a price difference in two different markets, buying at a lower price in one market and selling at a higher price in the other market. Fungible investments can be bought and sold on multiple exchanges. When combined with fluctuations in currency exchange rates, they can present opportunities for investors to make significant profits. In contrast, a blockchain-based voting system for electing government officials would use non-fungible tokens because only one vote is allowed per person. Many believe such systems should be created because every transaction would be transparent and constantly validated.

Non-fungible tasks, however, are usually highly serial in nature and cannot be completed before the earlier pieces or steps are done. Either that worker is given 10 days to complete the whole task, or nine extra workers can be hired to complete the whole project in one shift. Fungiblemeans that, for the purposes of an obligation, a unit of that asset of Bitcoin And Cryptocurrencies the relevant description is indistinguishable and wholly interchangeable with another unit of the same asset and description. Fungiblemeans Identical contract specifications and therefore capable of being freely exchangeable or replaceable. Fungible items that are regularly used up or worn out and must be routinely replaced are not considered essential.

fungible token

As you might imagine, the technical definition is a bit more convoluted. If you’re interested in that kind of breakdown, our NFT dictionary gives you a comprehensive overview of all the technology and infrastructure in the NFT ecosystem. Unfortunately, since going mainstream in 2021, NFTs have been a frequent source of hype, confusion, How To Sell Coinbase Pro Coinbase What Is Holding Vault and drama (yes, drama!). So if you’re new to the space, it can be pretty challenging to separate NFT fact from fiction. And honestly, it’s not much easier for people who are established collectors and builders in the community. NFTs are still a very new technology, and things change so rapidly that it’s tough for everyone to keep up.

In other cases, you’ll need to bid on the NFT of your choice and wait until the auction closes. If you’re the top bidder after the auction closes , the transaction will complete and ownership of the NFT will transfer to your wallet. Most of the time, you’ll only need to pay a gas fee to mint, but sometimes marketplaces will tack on extra costs. Similarly, make sure you do your due diligence when researching royalty splits. You are not guaranteed to have cross-platform royalties when you mint on a platform like OpenSea or Rarible. One thing to consider when choosing a marketplace is whether or not you intend to mint one NFT at a time and place it up for auction or mint a collection or batch of NFTs that are each individually priced.

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