The evolution of the digital space has led to the creation of non-fungible tokens, and the evolution of non-fungible tokens has led to the invention of the semi-fungible token. The non-fungible tokens are completely different from the regular tokens that are being traded over the digital spectrum. A regular token can be interchanged with another token of its own type without losing its value by any means. Whereas, in a non-fungible token, the tokens cannot be interchanged with another token due to the difference in the value. These tokens are completely unique, and it is impossible to identify similar tokens in the NFT domain. The functionalities of the semi-fungible token are in between the fine line of fungible and non-fungible tokens. At Infinite Block Tech, we provide complete services to develop your own semi-fungible token.
Benefits Of Non-Fungible Tokens
- Non-fungible tokens cannot be interchanged or replicated with any other digital asset. Thus, they are immutable.
- They are completely secure and immune to cyber-attacks because of the integration of the blockchain network.
- They can be traded easily across marketplaces because of their ability to stay unique. This virtue allows users to connect with unique marketplaces at ease.
- All third-party involvements like banks, central authorities, and financial agencies are removed completely.
What Are Semi-Fungible Tokens?
The concept of semi-fungible tokens is a relatively new concept in the crypto space. It is a group of tokens that has the ability to be operated as a fungible token and a non-fungible token. These SFTs are represented in the form of fungible tokens, and they can be traded over for identical SFTs.
Benefits Of Semi-Fungible Tokens
- It functions as a bridge between fungible and non-fungible tokens.
- The SFTs can be effectively traded separately over a respective group of tokens.
- It is extremely easy for the creators to mint these semi-fungible tokens.
- A single smart contract is sufficient to run both fungible and non-fungible tokens.
Non-Fungible Tokens Vs Semi-Fungible Tokens
The digital spectrum has been evolving and upgrading itself with various protocols and development sectors that are estimated to provide sufficient benefits for crypto enthusiasts. The concept of non-fungible tokens is based on the virtues of uniqueness and rarity. These are unique digital assets that are built effectively with the help of blockchain technology. These are represented as images, video clips, trading cards, concert tickets, digital artwork, etc. An NFT cannot be interchanged with another NFT; this has been the core concept ever since its inception. But to make it flexible, semi-fungible tokens were created.
The correlation between the NFTs and SFTs is explained effectively with a suitable example. For example, a concert ticket of a popular music band is considered a digital asset. This concert ticket possesses a certain value depending on external parameters such as the timing, the seating arrangement, and much more. This concert ticket can be traded with another ticket that possesses the same external parameters. But, this action of trading which is called the semi-fungible token, is only applicable till the point of expiration. After the point of expiration, it will become a non-fungible token. Thus, it proves that the semi-fungible token is a combination of both fungible and non-fungible capabilities.
Impact Of Semi-Fungible Tokens
The creation and the evolution of SFTs are highly contributed by the growing nature of the digital game sectors. It is a perfect fit for gaming sectors that are based on the concept of non-fungible tokens. Semi-fungible tokens are also like every other token. Hence, it is built on a blockchain as well. The Ethereum blockchain is the most commonly used blockchain for the development of semi-fungible tokens. These tokens are built with the operational factors of the ERC-1155 token standard. This token standard is the combination of both the fungible token standard, ERC-20, and the non-fungible token standard, ERC-721.
A digital game consists of in-game currency like game cash, gold coins, and some other currency-based asset and in-game purchases like weapons, skins, and relics. The in-game assets can be traded with both fungible and non-fungible token standards. But, during the trading process, the fungible and non-fungible tokens are traded separately and it has been very intricate. To simplify this challenge, semi-fungible tokens can be used. It makes the trade much more effective.
Future Of Semi-Fungible Tokens
The concept of SFTs would be a great game-changer in the future because of their ability to provide services to both fungible and non-fungible assets. The future of the token world is focused on combining protocols to create something that is fresh and innovative for crypto enthusiasts. Therefore, the semi-fungible tokens are expected to make a huge impact in the future.
Why Choose Infinite Block Tech?
Infinite Block Tech is a premier development company that has extensive prior experience in creating various types of tokens. We have ample resources to create your own semi-fungible token effectively. Our reputation in the crypto space is the primary reason for crypto businesses to come back to us. We have furnished our clients with immense customizable features that have proven to enable their platforms for great success. Therefore, for creating an effective semi-fungible token development, avail yourselves of our seamless SFT development services.