Crypto 101: What Are Semi-Fungible Tokens (SFTs)? Your Beginner's Guide
Following the meteoric rise of NFTs, the crypto world continues to innovate, introducing new token types with unique functionalities. One of the most interesting developments is the emergence of Semi-Fungible Tokens (SFTs). But what are they, and how do they work? This Crypto 101 guide will explain everything you need to know.
Understanding Fungible vs. Non-Fungible Tokens
Before diving into SFTs, let's quickly recap the basics. Fungible tokens, like Bitcoin or Ether, are interchangeable. One Bitcoin is the same as any other Bitcoin. Non-Fungible Tokens (NFTs), on the other hand, are unique and cannot be replaced by another token. Think of digital artwork or collectibles.
What are Semi-Fungible Tokens?
A semi-fungible token is a type of token that is relatively new and combines the characteristics of NFTs and FTs, These tokens initially operate as fungible tokens and also non-fungible tokens as long as they exist and remain valid. Semi-fungible tokens usually have face value. 23 de jun. de 2025They are tokens with dual-use instances that traverse the crypto world, adapting to both the use case of the fungible token at the expiration of which they may become non-fungible.
Semi-fungible tokens combine the features of fungible and non-fungible tokens and, as long as they are present and valid, they can operate the same way as they do. 10 de sept. de 2025Semi Fungible tokens are the newest crypto valuables in the Fungible and Non-Fungible families. They have the ability to be both Fungible and Non-fungible through their 18 de sept. de 2025Semi-fungible tokens are tokens that can operate as fungible tokens and also non-fungible tokens as long as they exist and remain valid.
How Do Semi-Fungible Tokens Work?
The key feature of SFTs is their ability to transition between being fungible and non-fungible. 16 de ene. de 2025What is a ‘Semi-fungible’ Crypto token? This adaptability allows for a wider range of use cases compared to traditional NFTs and FTs.
Think of it this way: a batch of tickets to a concert could initially be fungible. Each ticket within the batch has the same value and grants the same access. However, after the concert, each ticket could become a unique, non-fungible collectible, perhaps with a unique identifier or a digital autograph from the artist.
Use Cases for Semi-Fungible Tokens
SFTs have a diverse range of potential applications:
- Ticketing: As mentioned above, tickets can be fungible before an event and become unique collectibles afterward.
- Supply Chain Management: Tracking batches of products as fungible units, which then become unique items with individual ownership records once sold.
- Gaming: In-game items that start as fungible resources and evolve into unique, customized assets.
- Loyalty Programs: Points or rewards that can be traded interchangeably until they are redeemed for a specific item or experience, at which point they become non-fungible.
The Future of Semi-Fungible Tokens
Semi-Fungible Tokens are still relatively new, but their flexible nature positions them as a valuable tool in the evolving blockchain landscape. As more developers and businesses explore their potential, we can expect to see even more innovative use cases emerge.
Conclusion
SFTs offer a unique blend of fungibility and non-fungibility, opening up exciting possibilities in various industries. By understanding the basics of SFTs, you're one step ahead in navigating the ever-evolving world of cryptocurrency and blockchain technology.