What Is a “Semi-Fungible” Token in the Context of ERC-1155?
A semi-fungible token is an asset that is fungible for a period but then becomes non-fungible, or vice-versa. For example, a concert ticket is fungible (interchangeable) before the event, but after the event, it becomes a unique, non-fungible collectible.
ERC-1155 handles this by allowing the same contract to manage both the fungible and non-fungible states of the token.
Glossar
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.
Non-Fungible
Characteristic ⎊ Non-fungible describes an asset whose individual units are unique and cannot be mutually substituted, meaning each unit possesses distinct properties, history, and value.
Fungible and Non-Fungible
Interchangeability ⎊ Fungibility, within financial instruments, denotes the property of an asset having units that are mutually interchangeable; each unit possesses equivalent value and characteristics, crucial for efficient market operation and standardized contract design.
Fungible
Asset ⎊ The core characteristic defining fungibility, particularly within cryptocurrency, options, and derivatives, centers on interchangeability.
ERC-1155
Standard ⎊ This refers to the Ethereum Request for Comment specification that defines a multi-token standard, allowing a single contract to manage both fungible and non-fungible assets simultaneously.