The idea of semi-fungible tokens is synonymous with coupons and vouchers that are received during the festive season. As these coupons and vouchers are in way of currency different from each other, they can be used to buy products, albeit they are not a form of physical money.
What Is A Semi-Fungible Crypto Token?
It suffices to describe a semi-fungible crypto token as having the features of both fungible and non-fungible crypto tokens. In essence, they can serve as fungible and non-fungible crypto tokens throughout their lifecycle.
For instance, a gift voucher takes the semblance of a semi-fungible token. This is because its value is the same as an identical voucher of the same expiration date, and as such, interchangeable. The semi-fungible crypto token is a result of the conversion of fungible crypto tokens into non-fungible crypto tokens.
Uses Of Semi-Fungible Crypto Token
Semi-fungible crypto tokens are widely used in the gaming industry. They in turn make weapons and gold-bars trade easier. However, the likes vouchers, coupons, and gift cards are typical examples of semi-fungible items.
How To Create A Semi-Fungible Crypto Token
To create a semi-fungible token, this can be achieved using Ethereum’s ERC-1155 standard. The ERC-1155 is a hybrid of the ERC-20 and ERC-721.
ERC-20 is a designed process for fungible tokens like Ethereum and ERC-721 is a non-fungible crypto token standard. Developed by blockchain developers, it is a computer program that self-executes functions with sets of conditions.
Advantages Of Semi-Fungible Crypto Tokens
There are many reasons why semi-fungible tokens have preference over fungible and non-fungible crypto tokens.
Semi-fungible crypto tokens are more flexible than both fungible and non-fungible crypto tokens. So the tokens make gamers’ and players’ experiences easy and fascinating while playing. Also, developers find it appealing to use semi-fungible crypto tokens in coding and developing processes.
2. Useful In Many Ways
Due to the verifiability nature of semi-fungible tokens, they can be used to serve different purposes. A semi-fungible token can be used as a single ticket, just as a non-fungible token.
3. Relevant In Gaming Industry
The semi-fungible crypto token is majorly used in the gaming industry. It can be representative of weapons or in the game. The token usage history is often saved in games, including its value, when it is being traded from a player to the other.
4. Remains A Fungible Asset
The semi-fungible crypto token remains a fungible token once it has been traded from its original owner. This feature enables the tokens to have more liquidity, as they retain their value across all exchanges.
5. Built On Ethereum Blockchain
Semi-fungible tokens are created on the Ethereum blockchain, therefore, avails the tokens the benefit attributed to the blockchain infrastructure.
Future Of Semi-Fungible Crypto Token
It is no news that the new world is all about digitization. As it stands, semi-fungible items have a propensity for higher value in the future than they are today. They are very useful in application that does not support fungible and non-fungible currencies. As they are safer to use than digital and physical currencies, they tend to have a great future.
The semi-fungible crypto tokens are built om the Ethereum blockchain, so they will be well sought after by enterprises for better solutions.
Although semi-fungible tokens can be referred to as underdogs in the crypto space, they tend to bridge the gap between fungible and non-fungible crypto tokens. Many business outlooks use the semi-fungible tokens for different purposes, but can’t be traded again once it has been traded by the original owner.