With the tremendous growth of NFT tokens in 2021, fungibility has become a major issue in the field of digital currencies; But in the meantime, other types of tokens have been proposed called semi-fungible tokens.
The topic of “likeness or non-similarity” of tokens or “interchangeability” is really one of the fascinating topics in the world of digital currencies. If you are familiar with the field of digital currencies and their innovations, you must be familiar with unique tokens and be aware of the new wave that these tokens have launched in the world of digital currencies.
In short, proverbial tokens are tokens that are not different from each other and can be exchanged with each other; But non-proverbial tokens have unique properties that distinguish them from each other and therefore are not interchangeable. In the meantime, there are other types of tokens that are semi-authentic. In this matter to help an article Compiled from the Quinn Desk website, we will look at the semi-analog tokens and review their differences with the previous two types.
Proverbs, proverbs and semi-proverbs
In the first half of 2021, the popularity of unique tokens grew exponentially. Website data NonFungible It shows that sales of unique tokens in the first quarter of this year reached more than $ 2.4 billion. This is 20 times the figure for the previous quarter.
Now that we are in the second half of 2021, not only is this trend not slowing down, but we are witnessing the formation of new trends in the world of NFTs and its alignment with the world of defai. The new generation of NFTs, which are driven by protocols such as NFT20 and NFTX, are offered in the form of tokens that are connected to the liquidity pools of decentralized exchanges, through which they can be used financially. The popular Axie Infinity game is a clear example of the combination of Defy and NFT.
If you want to know more about these blending trends, we suggest the article The Next Piece of the Digital Currency Puzzle; Read NFT protocols in the world of diff.
The OpenSea, the leading market for Ethereum-based NFTs, traded up $ 70 million on October 1. The average daily trading volume of the platform in July was $ 8.3 million.
The average value of CryptoPunks unprecedented tokens in the same period reached a record 66,919 ethers ($ 238,833 at the time of writing) per NFT. Cryptopanx is the first set of unique tokens created on the Ethereum blockchain.
This explosive growth has started a new wave of innovation in the field of non-proxy assets, which has led to the creation of a new type of tokens called “semi-proxy tokens”. These tokens are interchangeable at the beginning of their creation, but later they become irreplaceable tokens. With this introduction, we will now look at these concepts and the nature of semi-proverbial tokens.
Read more: NFT build tutorial; How to sell our unique tokens?
Most of the digital assets that investors monitor and trade are so-called fungible; This means that they can be easily exchanged with each other. For example, if one exchanges one unit of ether for another unit of ether, no value is lost in the exchange and neither party to the transaction gains or loses.
This is because one unit of ether or one unit of bitcoin is no different in value from one unit of ether or one unit of bitcoin (of course, “contaminated coins” or coins that have already been stolen or used in illegal activities). These are exceptions). Fiat currencies, like the US dollar, are similar (exchangeable).
In other words, exchangeability is the ability of a token (or currency) to exchange or replace with other tokens of the same type without changing its value.
Non-replica tokens, or NFTs, are blockchain-based tokens that can carry digital ownership of unique and scarce assets such as works of art, collectibles, game elements and characters, pieces of music, or virtual property.
Because each of these items has a distinct value based on their inherent characteristics, such as the creator of the work or the degree of scarcity, non-unique tokens cannot be exchanged for another token, such as ether or US dollars.
For example, you can not replace a digital baseball card with a virtual one at a time; Because they are two completely different assets. After all, a digital baseball card may be a very rare set, and a virtual piece of land may be located in a remote area.
Unparalleled tokens are stored on the blockchain; Therefore, they have the following features:
- Indivisible: You can not buy only part of a unique token;
- Indestructible: Unparalleled tokens cannot be destroyed or removed;
- unchangable: Once the information about a proverbial token is stored, this information can no longer be changed;
- Verifiable Test: Because unique tokens are stored in public blockchains, anyone can easily check their authenticity and ownership at any time.
Also read: How Legal Are Proverbs?
Semi-tokens, or SFTs, are a relatively new group of tokens that have both repetitive and non-repetitive features throughout their life cycle. Semi-token tokens initially act like regular token tokens and can be exchanged for other identical token tokens.
For example, the value of a token representing an Amazon $ 10 gift card is the same as a gift card with the same expiration date and can be exchanged.
The distinguishing feature that makes these types of tokens “semi-analogous” is that they lose their face value after use. The loss of this value causes the expired tokens to take on a unique (or irreplaceable) feature.
To better understand this, imagine that you have a token that is the equivalent of a concert ticket to watch the last performance of a band. This ticket has an initial face value and you can exchange it for a similar ticket token for the same concert, on the same date and in the same seat. By the time the concert is over, these tokens have become a collectible memorial of a completely different value. Also, this token can no longer be exchanged for a concert ticket with the same original value as its date is still valid.
Semi-token tokens get their name from exactly this process of converting from a token to a non-token.
How to create semicircular tokens
Semitone tokens can be created using the Ethereum ERC-1155 tokens standard. ERC-1155 is one of several Ethereum standards that provide a standard design for token creation in the Ethereum blockchain and is compatible with other ERC-based projects.
Developers of Blockchain games Engine (Enjin), Horizon Games and Sandbox (The Sandbox) In 2017, they created the ERC-1155 standard. The ERC-1155 is essentially a combination of the ERC-20 (proxy tokens) and ERC-721 (non-proxy tokens) standards. Such a feature allows users to create and manage proxy and non-proxy tokens using a smart contract.
Semi-iconic tokens have a special application in the gaming industry. In games, there are both exchangeable items such as in-game currencies and gold bars, as well as non-recurring items such as collectibles and weapons. Gaming companies can use this feature to create both types of tokens and allow gamers to interact so that they can easily exchange items such as weapons with other items such as gold bars (and vice versa).