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feat: added article on tokens

friedger-patch-7
Patrick Gray 4 years ago
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      src/pages/write-smart-contracts/tokens.md

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src/pages/write-smart-contracts/tokens.md

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

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