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@ -9,23 +9,63 @@ images: |
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## Introduction |
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TK |
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A fundamental use of blockchain technology is the representation, store, and transfer of value between users of a |
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blockchain. Cryptocurrency is a very common use of blockchain technology, and remains one of the primary drivers |
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of adoption of blockchain technology. Cryptocurrencies are represented by blockchain tokens: representative units |
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within a given blockchain ecosystem. Blockchain tokens can extend beyond just digital currency, however, and recent |
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developments throughout the cryptocurrency community have demonstrated potential for the use of blockchain to tokenize |
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and represent not just money but other tangible assets. |
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A blockchain token is a digital asset that can be verifiably owned by a user of a blockchain. Blockchain tokens are |
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governed by a set of rules that are defined by either the blockchain itself (in the case of native tokens) or by a |
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smart contract on a blockchain. Rules can vary depending on the nature and the use of the token. |
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Tokens on a blockchain fall into two general categories, depending on their properties: [fungible][] or |
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[non-fungible][]. The following sections discuss the properties of both types of tokens, and provide information about |
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implementation of the two types of tokens on Stacks. |
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## Fungible tokens |
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TK |
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A core property of any token on a blockchain is fungibility. A fungible token is a token that's mutually interchangable |
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or capable of mutual substitution. In other words, one quantity or part of a fungible token can be replaced by an |
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equal quantity or part of the same fungible token. Fungible tokens are often used to represent real-world fungible |
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assets like currency. The STX token is an example of a fungible token. Other examples include stablecoins, tokens that |
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represent voting rights in a DAO, or tokens that algorithmically track the price of stocks. |
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Fungible tokens form one of the most important value propositions for blockchain technology, the ability to store value |
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and exchange that value through both internal and external transactions. Because fungible tokens can be divided into |
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smaller parts and recombined into the same value representation, they serve a great utility for transferring value |
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between blockchain users. |
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The primary fungible token on the Stacks blockchain is the native token, STX. Because the Stacks blockchain allows for |
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the creation of [smart contracts][], other fungible tokens can be created on the Stacks blockchain as well. [SIP-010][] |
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specifies the standard for fungible tokens on the Stacks blockchain. This specification defines the functions and traits |
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that a fungible token on Stacks _must_ have. By complying with this standard, fungible tokens on Stacks can be easily |
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represented by wallets that support Stacks. |
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## Non-fungible tokens (NFTs) |
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TK |
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Non-fungible tokens (NFTs) are a type of token that are not interchangeable. NFTs have unique traits (usually in the |
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form of attached metadata) that restrict the abillity to replace them with identical tokens. An NFT is a token that is |
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unique, such as a piece of art, or ownership rights to a real-world asset such as a house. |
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## Further reading |
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NFTs alone don't have an inherent value, like a currency. The value of an NFT is derived from the assets that the NFT |
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represents. The use of NFTs are myriad, including digital art, collectibles, domain names, and representation of |
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ownership of content rights. NFTs can be used as digital certificates that track the authenticty of real world items, or |
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digitize the ownership rights to property. |
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As with fungible tokens, NFTs on the Stacks blockchain are created with [smart contracts][]. [SIP-009][] specifies the |
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standard for NFTs on the Stacks blockchain. This specification defines the functions and traits that an NFT _must_ have, |
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but most NFTs have more functions or traits attached than those solely described by the specification. By complying with |
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this standard, non-fungible tokens on Stacks can be easily represented by wallets that support Stacks. |
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TK |
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## Further reading |
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## Scratch |
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- [The Difference Between Fungible and Non-Fungible Tokens](https://101blockchains.com/fungible-vs-non-fungible-tokens/) |
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- [Explain It Like I Am 5: NFTs](https://messari.io/article/explain-it-like-i-am-5-nfts) |
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- Good content in here: https://messari.io/article/explain-it-like-i-am-5-nfts |
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- 101 Blockchains article on FT vs. NFT - https://101blockchains.com/fungible-vs-non-fungible-tokens/ |
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- SIP-009 |
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- SIP-010 |
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[fungible]: #fungible-tokens |
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[non-fungible]: #non-fungible-tokens-nfts |
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[smart contracts]: /write-smart-contracts/overview |
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[sip-010]: https://github.com/hstove/sips/blob/feat/sip-10-ft/sips/sip-010/sip-010-fungible-token-standard.md |
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[sip-009]: https://github.com/friedger/sips/blob/main/sips/sips/sip-009-nft-standard.md |
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