Fungible Tokens

In this section you will learn about the fungibility of the tokens, Layer-1 blockchain coins, cryptourrencies and fiat money. Fungible tokens are tokens that can change interchangeably without causing any effect on the owner's account. This term is not only for cryptocurrencies or tokens but also accurate for fiat money as well. A banknote of 100 Euro is equal to two banknotes worth 50. Basically, if you switch your 100 euros with two 50s your account is not affected. The total value would remain the same. This comes from fungibility.

Layer-1 Coin

Like fiat money, there are fungible cryptocurrencies exist such as BTC (Bitcoin), ETH (Ethereum), or CCD (Concordium). These are examples of Layer-1 blockchains coins, owners can divide them into smaller parts, transfer them, trade them, and exchange them but all of these assets are one of a kind and they are interchangeable. 1 CCD will always be equal to 1 CCD. A Layer-1 can use this for allowing monetary transactions, covering transaction costs known as transaction fees, rewarding bakers or miners, etc. Depending on the total supply you can consider a coin deflationary or inflationary.

Token

A token is a form of a digital asset that represents a share of some either digital or physical asset. It has to be implemented on a Layer-1 blockchain like Concordium. A fungible token is like fiat money or coin of a Layer-1, an owner can divide it into smaller parts transfer it, trade it, and exchange it but all of these assets are one of a kind and they are interchangeable. 1 TKN will always be equal to 1 TKN.