Fungible Cryptocurrencies to Non-fungible Tokens?
Bitcoin is both fungible and divisible. Fungibility is an important aspect for Bitcoin to become mainstream as a currency. Just as two one-dollar bills, even though one of them is smudged, hold the same value, two bitcoins are virtually indistinguishable and hold the same value, unless one of them was the first Bitcoin to be mined by Satoshi Nakamoto. In that case, it becomes a collectible. In the Cryptokitties example, each cat has a unique set of properties in terms of age, colour, and breed that makes it unique and distinctive.
Most Ethereum tokens out there follow the ERC20 and ERC223 standards a.k.a Fungible Token Standards. The ERC721 token standard was pioneered by the Cryptokitties team to create non-fungible tokens (NFTs). The ERC721 standard is better suited for collectibles as its value is unique, rare, indivisible (lucky kitties!) and associated with the characteristics of the token at the time of creation. The ERC721 standard can be used not only for creating collectibles, but it can also be used for tokenizing real life non-fungible assets like houses, cars, etc.
One of the biggest innovators in the space of collectibles and non-fungible tokens is Decentraland.
They are developing a new non-fungible token standard called ERC821 standard and using it to design and build in-house virtual games, as well as sell acres of virtual land.
The field of digital collectibles and NFTs is still a fledgeling one and the number of projects is pretty much in single digits. However, driven by changing preferences of millennials allied to ongoing work around development of trustless designs to hold digital collectibles in a safe and secure manner, we expect this space to witness greater developer mindshare and market size growth in the future.
With that, we are now off to focus on our secret ‘cryptotrumpie’ project. There is going to be a ton of customisation options, and it is going to be ‘yuuge,’ we assure you!
ZPX is actively looking for blockchain and crypto enthusiasts who can join us in revolutionizing traditional markets. You can visit our careers section here
Also, Team ZPX is in NYC to attend Consensus 2018 and Token Summit. Please drop us a line at email@example.com
. We would love to meet up with you over coffee.
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