To understand the definition better, let’s puzzle it out word by word. First, let’s focus on the word fungible, which has a very precise definition of the economy. Fungible means replaceable. It’s anything that can be replaced by another one with the same value. A dollar banknote or a sack of sugar is fungible. You don’t care which one of them you get, they are the same, identical to the rest.
Non-fungible things are unique. It’s something that has an emotional value. Da Vinci’s “Mona Lisa” is non-fungible, there’s only one on Earth. You can get a replica, but it never will be the same as an original canvas, it has no significance. Unsurprisingly, non-fungible things are way more precious than fungible ones. NFT is also non-fungible. In other words, each NFT is a unique digital asset and can not be replaced by any other NFT. Some non-fungible tokens become popular and expensive collectibles due to their rarity and value.