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What Is the Concept of “Fungibility” in the Context of ERC-20?

Every unit is identical and interchangeable, making them suitable as currency or collateral, as only a single balance is tracked.
Greeks.Live16.11.25

What Is the Concept of “Fungibility” in the Context of ERC-20?

Fungibility means that every unit of a token is identical and interchangeable with any other unit of the same token. For example, one USD Coin (USDC) is always equal in value and function to any other USDC.

ERC-20 enforces this by only tracking a single balance for each address, making the tokens suitable for use as currency, utility tokens, or collateral in DeFi protocols.

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What Is the Concept of ‘Fungibility’ in the Context of Cryptocurrencies?

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