Why did Microsoft buy fungible?

Today, Microsoft is announcing the acquisition of Fungible Inc., a provider of composable infrastructure aimed at accelerating networking and storage performance in datacenters with high-efficiency, low-power data processing units (DPUs).

What are fungible assets?

Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets. Fungibility is the ability of a good or asset to be readily interchanged for another of like kind. Like goods and assets that are not interchangeable, such as owned cars and houses, are non-fungible.

Is fungibility the same as liquidity?

Fungibility is not the same as liquidity. If something can be easily exchanged for money or another good it is liquid. Something is fungible if one unit of that product is substantially equivalent to another unit of the same product that has the same quality at a specific time and place. Liquidity does not imply fungibility and vice-versa.

What is the difference between fungibility and non-fungibility?

The line between fungibility and non-fungibility may be a thin one. Gold is generally considered fungible (one gold ounce is equivalent to another gold ounce), though in some cases, it is not. When otherwise fungible goods are given serial numbers or other uniquely identifying marks, they may no longer be as fungible.