FUNGIBLE AND NON-FUNGIBLE TOKENS

Header Image "Washington Tax Tokens From 1935": by $1LENCE D00600D


Before we talk about each of the token types let's look at why the standards exist in them. For the why of the standards in the tokens is not very different from the standards in anything else that we use commonly. For example, the USB standard was created so that all the companies that manufacture it do so with the same measurements and technical characteristics. So a USB port is the same anywhere in the world and will fulfill its function smoothly.



Something very similar happens with tokens. Initially there was the problem that each token had each different parameters. Then every time a new one was created, it was different from everyone else. That created a lot of storage and compatibility issues. Then as a solution to this problem the ERC-20 standard is created with 6 mandatory parameters and 3 optional for its configuration.



With the ERC-20 standard it's possible to create equal tokens between it. That seems obvious right now and is sometimes often overlooked but it's important for what's next. For example, if user A has 1000 ERC-20 1UP type tokens in their wallet. Those 1000 1UP are identical in their characteristics to which a user B has, if they exchange them they stay as they were before. That's one of the properties that make ERC-20 tokens the character of fungibles.



Therefore the best way to classify and see a current overview of token types is to put it according to whether they are fungible or non-fungible.



Non-fungible tokens are all unique. Its value lies in its uniqueness. Each is an unrepeatable piece.  Derived from this they cannot be exchanged for other equals, because there is no other equal. The standard used to create non-fungible tokens is ERC-721. At the time of writing, a total of 2,926 ERC-721 tokens were created. The trading site and collectible digital card games site "Gods Unchained Cards" is the most active at the moment and more than 100,000 transfers have been made in the last 7 days. There each card is a collectible ERC-721 token, with unique features that make it tradeable and searched by buyers.



Here I leave then as the classification is:



FUNGIBLE TOKENS: 




  1. -CURRENCY TOKENS: its only function is to store and exchange value. The best known is bitcoin.

  2. -UTILITY TOKENS: goods and services are accessed with them within a platform.

  3. -SECURITY TOKENS: with them you buy shares and shares of a business.


NON-FUNGIBLE TOKENS:



The uses that have become more popular are the game sites, character creation and objects that become collectibles. The possibilities are immense. It's a fertile ground for creativity. You can tokenize material objects, houses, vehicles, documents., works of art. All this using blockchain technology and all its benefits. 



LINKS:

etherscan.io

GitHub


COMMENT

23

preview not available Hafsa M
01 Dec

before, i dont know about the difference between fungible and non fungible tokens. thanks for explaining it.

3 REPLY

15

Hector Jose Gonzalez
01 Dec

You're welcome. And thanks so much to you for reading! My best regards...

2 REPLY

17

Hania Rameen
01 Dec

You described very well

2 REPLY

25

preview not available Busola Akinlolu
02 Dec

Beautiful, this is definitely a quality post, great job Buddy.

1 REPLY

15

Hector Jose Gonzalez
02 Dec

Thanks so much Busola. I'm glad you liked it. My best regards!

1 REPLY

11

j.toons .
02 Dec

wow thanks I never knew much about tokens

1 REPLY

15

Hector Jose Gonzalez
02 Dec

You're welcome Justice!

1 REPLY

21

EngrSamest .
02 Dec

Beautiful information for the new and even Crypto enthusiasts. You nailed this Buddy.

1 REPLY

15

Hector Jose Gonzalez
03 Dec

Thanks so much for reading Samest.

0 REPLY

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