Non-Fungibility

Non-fungibility refers to something unique and not interchangeable on a one-to-one basis. Unlike money or standard commodities where each unit is identical and interchangeable, a non-fungible item has distinct characteristics that make it different from others. For example, a rare artwork or a digital collectible (NFT) is non-fungible because each has its own value, history, and specific attributes. This uniqueness gives it individual worth, and you can’t simply trade one for another at an equal price without considering its specific qualities.