What Are the Advantages of Using Semi-Fungible Tokens in Supply Chain Finance?
Semi-fungible tokens can represent items that are fungible (e.g. 100 identical bolts) until they are attached to a unique shipment or asset, at which point they become non-fungible.
This allows for efficient tracking and batch management while retaining the ability to trace the history of a specific item. It improves transparency, reduces fraud, and streamlines inventory management.
Glossar
Batch Management
Execution ⎊ Batch Management within cryptocurrency, options, and derivatives contexts denotes the systematic processing of trades or instructions as a single unit, optimizing for speed and reduced transaction costs.
Fungible
Asset ⎊ The core characteristic defining fungibility, particularly within cryptocurrency, options, and derivatives, centers on interchangeability.
Semi-Fungible Tokens
Valuation ⎊ Semi-Fungible Tokens represent a nuanced asset class within cryptocurrency, bridging the gap between wholly fungible tokens and non-fungible tokens (NFTs); their value derives from fractionalized ownership of underlying assets or rights, necessitating dynamic pricing models beyond simple market capitalization.
Supply Chain
Provenance ⎊ Supply Chain integrity within cryptocurrency, options, and derivatives relies heavily on verifiable data lineage, extending beyond traditional financial record-keeping to encompass cryptographic proof of ownership and transaction history.