When it comes to categorizing the assets in terms of existence we generally categorize them as physical or digital assets.
But, In the blockchain, we categorize digital assets into 2 different kinds of assets.
- Fungible assets
- Non-Fungible assets
What are fungible assets?
Those assets which can be divided easily and can be used in daily life are called fungible assets. eg. Alice lends Bob 1 * 10 coins (10 USD) to Bob. After a few months, Bob returned 1 * 10 coins (10 USD ) to Alice. You see here, Alice and Bob both are doing 10 USD transactions but, they are similar in their properties. There is no such concrete mechanism through which we can prove that money returned by Bob is the same money got lend by Alice. It’s the same in value but difficult to prove the identity are the same. And there are no such benefits also if we can prove that it’s the same money because the underlying value in all aspects will be the same.
What are Non-Fungible assets ?
Unique assets, non-divisible are rare in terms of identity. Complex definition!! Let’s make it…
