Semi Fungible Token Development Platform
The explosive growth of NFTs made “Fungibility” a dominant theme of 2021. Interest around the NFTs has reached meteoric levels with sales surging to over $2.4 billion in the first quarter. Leading NFT marketplaces like OpenSea is experiencing record high trading volumes. The introduction of new types of “semi-fungible” tokens (SFT) will revolutionize the way we think about and use cryptocurrencies. Let us try to get a brief understanding of this concept, the way it functions, and its benefits.
What Is SFT?
Semi-Fungible Token or more commonly referred to as (SFT). With cryptocurrency becoming more and more popular in the past few years and technological advances taking place more rapidly, blockchain’s use for cryptocurrency transactions by companies all over the world is also witnessing a rapid surge! It comes in as an improvement on the foundation of the Non-Fungible Tokens. SFTs are a relatively new group of tokens and the feature that makes it all the more interesting is the fact that it has properties of both fungible and non-fungible tokens throughout their lifecycle. Like regular fungible tokens, it allows swapping and trading with other identical SFTs but once it is traded or redeemed then it becomes non-fungible. Hence, a distinguishing factor that makes these special types of tokens “SFTs” is that these tokens lose their face value once they are redeemed. This feature strengthens its asset value. For example – Buying two concert tickets of the same date, price, and seat can be exchanged but the ticket becomes an NFT and a collectible after the exchange. A valid $50 Amazon voucher can be exchanged with an identical one if they have the same expiration date and thus are interchangeable. Expired tokens become non-fungible when there is a loss of exchangeable value. The process of transfer from its fungible to a non-fungible asset upon redemption is where SFT or semi-fungible tokens get their name.
We are all familiar with how coupons or vouchers work since we all use them. The coupons or vouchers work differently from other forms of currencies. Wondering how they are not the same in nature? The crypto nature of coupons and vouchers is the first distinguishing factor that makes them different from other forms of currencies. They are different from a cash or physical money but at the same time, they are also different from cryptocurrency. This form of money can best be used as an example of a semi-fungible crypto token.
Learn the way to create an SFT
A semi-fungible token or SFTs can be minted by using Ethereum’s ERC-1155 standard. The combination of the ERC20 and 21 is what makes an 1155, which creates a unique item in every instance!. The blockchain game developers – The Sandbox, Horizon Games and Enjin created the standard and developed SFT with a combination of fungible and non-fungible token standards in 2017. It allows the creation of the token with a single smart contract unlike the NFTs, where every new transaction requires a different contract. SFT creation is optimal for the gaming industry since fungible tokens are used for transactions.
Why is SFT Development Services crucial in the marketplace?
Nonfungible assets or the NFTs have revolutionized the way ownership of assets is done in the digital world. It is due to the introduction of NFTs that the ownership of an asset can be represented in an immutable, secure, and transparent way. However, the process of changing an entire collection of NFTs is slow and ineffective. Therefore, the multi-token standard – SFT development is gaining immense popularity as it makes the batch token transfers much easier given the fact that it supports both NFTs and fungible tokens. Although semi-fungible tokens will take some time to fill the blank spaces of NFTs, the trend is certainly becoming popular, especially within the gaming industry. The SFTs displaying properties of both fungible and then later a non-fungible token makes it highly versatile. The liquidity of the assets gets improved with the help of SFTs. They are also flexible in nature and thus SFT development services are becoming crucial.
Advantages of SFT tokens
SFTs are highly preferred over the NFTs and other fungible tokens largely for the wide range of advantages they provide. Following are the main benefits of SFT tokens:
Face value of tokens retained
The semi-fungible crypto tokens remain as fungible token once it is traded from their original owner, thereby lending the tokens more liquidity and strength to the value of the asset. The tokens retain their face value across the transfer and exchanges.
Variety of uses
The SFTs or the semi-fungible tokens help in verifying different attributes as they are verifiable in nature. There are a number of ways in which it can be used. The application can also be used as a single ticket and non-fungible asset.
Wide usage in the gaming industry
With their broad usage in the gaming industry, SFTs are becoming more and more popular. They can serve as a digital representation for weapons or any other items that appear within an online game. When SFTs are traded from one player to another, the history of their use and its value are saved.
Representation of non-fungible token
A token that can be both fungible and non-fungible is the new class of cryptocurrency and that is SFT. This allows traders to buy or sell tokens in fractions. This concept has been popularized by games like Clash Royale where players collect various pieces for their decks instead of just one card with full value on it.
Built on the top of Ethereum blockchain
Semi-fungible tokens can make the best use of current infrastructure and cases due to its dependence upon it.
Unique Selling Point
It’s not uncommon for business innovation to have their own unique features to gain a competitive edge in the market. Unlike other tokens, Semi-fungible crypto tokens are ERC-721 compliant and this clearly gives them an edge over competitors who do not follow these standards!
Flexible in nature
The semi-fungible crypto tokens are more flexible than their fungible and non-fungiébile counterparts. Hence, gamers and players can have an exciting gaming experience with the help of these tokens. Using the semi-fungible tokens makes the task of developers easy as they find the developing and coding process with complete ease. Gamers can also afford to make in-game purchases easily.
Prolitus’s Semi Fungible Token Development Services
We use the ERC-1155 multi-token standard to perform SFT development. To make things easier, each token ID represents a new type of token that can be configured with different attributes altogether. E.g., your company could create one set of tokens for customers and another to use internally within the system
Various attributes like token ID, token count, and metadata are attached to each token. Entities like gamers, artists, and brands can put multiple token contracts into one ‘smart’ contract through SFTs. This would help them cut costs while also simplifying management by keeping track of just 1 source instead of 10+ independent sources- each managing its own set assets/tokens. They can make optimum use of SFTs when it comes to removing complexities from running private networks. We provide an open, easy, and affordable minting; thereby creating a tangible impact and helping our clients receive value from their investments.
Develop your Semi Fungible Token Using Our Expertise
Semi-fungible crypto tokens serve as the underdogs of the cryptocurrency world. With the development of blockchain technology, it is now possible to create tokens that are not just fungible or scarce but semi-fungible. You can represent anything with these unique digital assets. From a toy sword or an original work by a renowned artist, they’re perfect for any project that requires the use of 3D models and textures!
Major features of our SFT development services are the following:
- We will provide our best team of experts with real-world experience and sound technical knowledge in helping you succeed with the use of SFTs.
- Delivering professional methodology to develop SFT tokens
- Providing end-to-end support for SFT development – be it with the product launch or post-delivery services. Our round-the-clock support helps you focus on other areas of growth.
- Supporting management of fungible and non-fungible tokens with ease
- Allowing owners the chance to unbundle the token even when they are bundled under one smart contract, thus providing a way to trade each token separately
- Customized products to meet the requirements and to suit your target audience
- Accelerated and smooth development and deployment with a coherent roadmap
Frequently Asked Questions
A token can have properties of both fungible and non-fungible tokens. The SFT or semi fungible token has features that make it different from an ordinary cryptocurrency but also shares some similarities with them too; It can be traded or exchanged with identical SFTs but once it is traded or redeemed then it becomes non-fungible.
SFTs are likely to have more value in the future as the world becomes more digitized and technical. Fungible and non-fungible currencies are great for trading items but they don’t work in applications that require fungibility. Hence, we can leverage the capabilities of SFT.
What is the relevance of SFTs in the gaming industry?
SFTs are particularly useful for gamers and developers to give an interesting gameplay experience. The gaming industry has a mix of fungible elements, such as gold bars or V-Bucks. But there are also non-fungibles: weapons and collectibles that can be collected by gamers in games to make them more unique than any other player with the same items – these SFTs will likely prove useful for this industry.
It is safe to use SFTs in comparison to cash or any form of digital currencies.
What are some important use cases of semi-fungible items?
The most important use of semi fungible tokens can be seen in the gaming industry. Semi-fungible items are everyday objects that can be used by one person or many. This includes tradeable gold bars and weapons, but also coupons.
