Semi-Fungible Tokens (SFTs) are a thing now?
Remember when the iPhone was just the iPhone?
Now we have the iPhone, the iPhone Mini, the iPhone SE, the iPhone Pro and the iPhone Pro Max...
Yeah, this Semi-Fungible Token (SFT) thing feels similar to that.
First, let's start by going over fungibility real quick.
If a crypto token is ‘non-fungible,' it means it’s unique in its value and cannot be replicated.
Think of it like this:
If we each had a dollar bill and swapped them, neither of us would be richer or poorer for it, because that piece of paper represents the same dollar value (dollar bills are fungible).
But if we had an exact replica of the Mona Lisa and you had the real Mona Lisa, when we swapped them - you would be poorer for it (sorry).
Because no matter how close our replica is, it’s still not the real thing.
Semi-Fungible Tokens (SFTs) take a hybrid approach to fungibility - they start off fungible and can be upgraded to become non-fungible.
(That's a lot of funging, amirite?).
SFTs are perfect for Web3 gaming and are actually kind of genius in how they function...
A player can start a free-to-play game, with stock standard in-game gear (let's say for example, a sword).
The sword wouldn't be special - everyone would start out with the same one - but as the player progressed and started to make specific upgrades to it, it would become unique.
The sword in this example would be represented as an SFT, where it would start off fungible, and become non-fungible as the player progressed through challenges.
This functionality allows developers to create Web3 games that are free to play from the outset.
(No need to first purchase an expensive NFT, in order to start playing).
That's a big barrier to entry, completely removed.
Smart.
