What is Fungible Asset (FA)

Fungible assets, or tokens, are digital representations of value on a blockchain platform. Here’s a breakdown:

| Token Standards | Like ERC-20 (Ethereum) or BEP-20 (Binance Smart Chain). These are the rules of the game, making sure tokens play nice with wallets and exchanges. | | --- | --- | | Smart Contracts/Modules | These are programs that manage tokens, specifying how they are created, transferred, and held. | | Decentralization | Tokens operate on a blockchain, a transparent and secure system maintained by a network of computers. | | Use Cases | Tokens can serve various purposes, like cryptocurrencies (e.g., Bitcoin), utility tokens (access to services), Stablecoins (cryptocurrencies that are pegged to fiat) or representing ownership of assets. | | Transfers | Tokens can be sent to other blockchain addresses, with each transaction securely recorded using cryptographic signatures. | | Ownership | Your tokens are yours thanks to private keys. | | Interoperability | Tokens can interact with other tokens and applications on the same blockchain, enabling a wide range of functionalities. |

Movement offers two ways to create and manage tokens: Coin and Fungible Asset. Coin is considered the legacy standard, in this section we’ll focus on the new Fungible Asset standard.

The Fungible Asset standard allows you to:

• Create and manage your own fungible asset.
• Manage a user’s fungible store (like a digital wallet) for a specific asset.
• Set a maximum supply, preventing unlimited minting (a feature Coin doesn’t have).
• Customize permissions for actions like minting, burning, freezing, and forced transfers.
• Use a fully functional freezing feature, unlike the limited one in the Coin standard.

In summary, the Fungible Asset standard provides more control and flexibility than the original Coin standard, offering enhanced capabilities for token management.