Semi Fungible Token
A semi-fungible token is a digital asset that exhibits characteristics of both fungible and non-fungible tokens, depending on its context or usage. Initially, SFTs may represent interchangeable assets, such as event tickets or in-game currencies, making them fungible. However, once they are utilized or reach a certain condition, they can transform into unique, non-fungible items, like a redeemed ticket or a specific in-game item with distinct attributes.
For web3 developers, implementing Semi fungible tokens allows for versatile token designs that can adapt to various use cases within a single token standard, enhancing the functionality and user experience of decentralized applications. Standards like ERC-1155 on the Ethereum blockchain facilitate the creation and management of semi-fungible tokens by supporting both fungible and non-fungible assets within a single smart contract.