Semi-Fungible Tokens are shaping up to be a game-changer in Web3 games, benefitting gamers and developers in different ways.
NFTs vs. SFTs
When an asset or token is fungible, that means it is indistinguishable by any other token in the series. For example, bitcoins, dollars, and gold are fungible assets. However, Cryptopunks, paintings, and your home are non-fungible assets.
Semi-Fungible Tokens (SFTs) lie somewhere in the middle, meaning they have both fungible and non-fungible traits. An example of this would be a token that is redeemable for an asset during certain period of time.
“SFTs are the new counterpart to NFTs that are about to take off in GameFi. SFTs enable Web3 games to create assets that fit the “stackable” use case made popular in traditional RPG games,” explained the Genopets team to Web3Wire News. “Ultimately, SFTs unlock two major benefits to players and game publishers: a better user experience and less resources required by the blockchain to mint and transact.”
Genopets is a Solana-based blockchain game that leverages the strengths of both NFTs and SFTs. Each player gets a unique digital pet NFT, but the resources they gather (Wood, Metal, Water Crystals, etc.) are SFTs.
“From a player’s perspective, if you want to sell 10 Water Crystals or buy 5 Fire Crystals to craft a new item, instead of buying or selling 10 NFTs individually, SFTs let you do so in one easy click,” said the team.
Semi-Fungible Tokens are more resource efficient on the blockchain and share a single “Mint Account,” meaning lower fees and less storage.
Magic Eden & Genopets Launch SFT Marketplace
Genopets teamed up with Magic Eden, the digital marketplace valued at $1.6 billion, to launch the first SFT marketplace on Solana.
Both teams announced the partnership on July 27 via Twitter, making Genopets the first game on Solana to offer SFT marketplace support.
“We are excited to partner with Genopets and unlock new capabilities within the Web3 gaming sphere and are eager to see how users will interact with this platform function. We want to give players the tools they need to explore, grow, and trade within the community,” said Tony Zhao, Head of Gaming Investments for Magic Ventures.
Magic Eden surpassed OpenSea in users and transactions – a testament to how the NFT ecosystem in Solana is expanding. To keep the momentum going, the marketplace just launched Magic Ventures, a venture firm focused on investing in Web3 games.
Web3Wire News will keep up with all the latest developments in digital assets as developers continue innovating across GameFi.
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