SFTs are the new standard for web3 gaming and metaverse items, digital fashion, memberships and more!

Take a dive in with us on Medium.

SFTs have great versatility as they combine the characteristics of fungible tokens and NFTs.

SFTs use the ERC-1155 standard and can be exchanged one-for-one (1:1) with other identical SFTs, but an SFT cannot be exchanged (1:1) with a non-identical SFT.

This means that SFTs are well-suited for most digital items that have more than one copy. SFTs open up new design space for developers, make markets more efficient, and enable better user experiences.

In our latest article, we dive into the use cases for SFTs such as for games like Sunflower Land, Galaxy Fight Club, The Sandbox and Skyweaver, digital fashion and membership access.

SFTs are especially great for gaming as they enhance video games by enabling liquid and healthy markets, delivering user and developer benefits, and birthing new use cases. Traditional game items are like SFTs, but without the web3 benefits!

Most web2 game items have multiple copies, instead of each item being unique. The downside to traditional video game items is that you can’t really own them and trading is usually prohibited

So why are SFTs great for gaming?

Let’s dive into the characteristics that make SFTs great for gaming!

  • The SFT standard can represent almost any kind of asset, which leaves the design space open for creators

  • SFTs have the ability to integrate numerous tokens into a single contract and make them highly cost-efficient for developers

  • SFTs enable batch transfers of fungible tokens and NFTs

  • SFTs also enable multi-transfers

  • The multi-transfer capabilities reduce gas costs for users too

The ERC-1155 standard is also highly suited to the digital fashion market as its dynamic characteristics allow for personalization.

This benefits creators looking to capture a share of the expanding market of customizable virtual goods that enable self expression. In our article we dive deeper into the case of RTFKT - which is Nike owned - showcases an innovative digital fashion application using SFTs which leverages the capability ERC-1155 has to change state.

SFTs can be also be utilized for membership access by providing tiered levels of utility which is a valuable use case for membership programs. We dive deeper into the Adidas Originals Into the Metaverse collection, an example of a membership SFT.

While NFTs have emerged as the go-to standard for digital art and real estate, SFTs are changing the game and are set to become the prominent tradable assets for web3 gaming and collectibles.

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