What is NFT and SFT?

<p id="isPasted">NFTs (Non-Fungible Tokens) and SFTs (Semi-Fungible Tokens) are both digital assets recorded on a blockchain, but they differ in their fungibility. NFTs represent unique, one-of-a-kind digital assets, while SFTs combine characteristics of both fungible and non-fungible tokens, meaning they can be interchangeable like fungible tokens (like cryptocurrencies) up to a certain point, after which they become unique and non-interchangeable.&nbsp;</p><p>NFTs (Non-Fungible Tokens):</p><p>Unique and irreplaceable: Each NFT is distinct and cannot be directly replaced by another NFT.&nbsp;</p><p>Examples: Digital art, collectibles, virtual real estate, in-game items, and other unique digital assets.&nbsp;</p><p>Verifiable ownership: NFTs use blockchain technology to verify and track ownership of the asset they represent.&nbsp;</p><p>Examples: A specific piece of digital art or a unique virtual land deed.&nbsp;</p><p>SFTs (Semi-Fungible Tokens):</p><p>Hybrid nature:</p><p>SFTs can behave as fungible tokens initially (interchangeable) and then transition into non-fungible tokens under certain conditions.&nbsp;</p><p>Examples:</p><p>Concert tickets, in-game items that gain unique properties over time, or loyalty points that can be exchanged initially but become tied to specific user actions.&nbsp;</p><p>Flexibility:</p><p>SFTs offer flexibility by allowing for both fungibility (easy exchange) and uniqueness (specific attributes or history).&nbsp;</p><p>Use cases:</p><p>SFTs are useful in situations where an asset's value or characteristics change over time or based on usage.&nbsp;</p><p>Example:</p><p>A concert ticket might be fungible before the event, but once used, it becomes non-fungible as it represents a specific entry.&nbsp;</p><p><br></p>