Fungibility

Fungibility is the property of an asset where each individual unit is interchangeable and indistinguishable from another unit of the same type. For example, one Bitcoin is fungible because it can be exchanged for any other Bitcoin of equal value. Cash is fungible, while NFTs are non-fungible by definition, as each token is unique. Some privacy coins like Monero aim to enhance fungibility by making transaction histories untraceable.