FTs, NFTs, and RFTs; A quick breakdown.
Hey there Crypto-Sapien, It’s Otto11 again and today we are gonna be talking about Re-Fungible tokens.
I am sure you would be wondering what RFTs are right?
Well, to get into that, we are going to start from the very beginning and that is, we will talk about; a). Fungible Tokens b). Non-Fungible Tokens c). Re-Fungible Tokens.
Fungible tokens;-
When we talk about Fungible tokens, basically everyone has an idea of what it means.
It could be an asset, an item that we use in almost all our everyday lives by trading either for another currency of the same value or exchange for a commodity with the same market value.
Its properties are-
a). It is divisible
b). Indistinguishable
c). Interchangeable
Non-Fungible Tokens;-
Firstly, let’s address NFTs as assets because each NFT has different individual properties.
We know that NFTs are Non-Fungible tokens, often characterized as non-interchangeable data on the blockchain, Non-fungible tokens (NFTs) can be utilized for a variety of reasons.
They provide a slew of new possibilities for blockchain technology. Starting from commands on codes on the Ethereum blockchain and diversifying into other EVM like entities, thereby allowing it to be a widely acceptable digital “token”
Its properties are-
a). Indivisible
b). Non-Interchangeable
c). Provably Scarce
Re-Fungible NFTs;-
Like NFTs, Re-Fungible tokens are also tokens built on the Ethereum blockchain.
But Re-Fungible tokens bring a different vibe to the mix, how? you may wonder, well let’s use the BAYC and MAYC NFTs as an example.
The holders of the Bored Apes were airdropped Apecoin and were also eligible to buy a metaverse-based land deed on another project by the same developers after.
Now for RFTs, let us look at the bigger picture. A re-fungible token (RFT) is a non-fungible token that reverts to fungibility. For NFTs with a unique ability: partial ownership, re-fungibility offers up a whole new realm of possibilities, like the best of both worlds.
These possibilities can be likened to the BAYC and MAYC but with re-fungible tokens are assets that are parts of a bigger collective e.g like how DAOs work.
Its Properties are;-
- It is Divisible.
- Real-world Useability.
- Built on the blockchain
The Unique take;
“Re-fungibility is an interesting advancement and extension from the introduction of NFT bridges, according to Unique Network: If ownership sharing is required, a previously non-fungible token can be rendered re-fungible after being transferred to Unique Chain over a bridge.
We are developing and deploying next-generation NFT technology that goes beyond what has been established on Ethereum, Solana, or Tezos, along with many of our dynamic NFT features and benefits.
NFTs on Unique Network goes beyond the current technological constraints in terms of scalability, complicated ownership structures, re-fungibility, and flexible ownership models.”
