Thread by @cjohnchak

A Crypto-Native's Guide to the World of Warcraft
🤴🏻🧵👹

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❓What's this thread really about?

Distinctions btw different token types such as fungible tokens, NFTs, and semi-fungible tokens.

❓Why now?

There has been confusions around the community about what it means to be a semi-fungible token and I'd like to address them here.

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❓But ... why #WoW?

Because The #Ethereum ⬇️ and the fact that it's the single greatest MMORG ever created. (There, I said it.)

So, without further ado, let's get to it!

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FT (fungible token) is a token that is interchangeable with one another. All standard WoW currencies: Gold, Silver, and Copper, are considered fungible.

Main crypto parallels of the WoW money are 99.999% of cryptocurrencies such as Bitcoin, Ether, SOL, or BNB.

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NFT (non-fungible token) is treated as one-of-a-kind. Owning items flagged as unique (e.g., Warglaive of Azzinoth) means only one copy of the gear is ownable.

In Wow, multi players can own a WoA each whereas only ONE address could own ONE crypto NFT. Key difference.

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SFT (Semi-fungible token) is trickier because there isn't exactly a consensus on what semi-fungible really means ... yet.

Two largest perspectives into the semi-fungibility of a token are #ERC1155 Multi Token Standard & #ERC3525 Semi-fungible Token.

Let's go over each.

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Sending multiple copies of the same item is easy in WoW, but the same task in a blockchain game would lead to hefty gas fees.

ERC1155 resolves this by enabling multiple transfers of the same (or multiple) token types in just ONE transaction, significantly saving gas.

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So in a hypothetical universe where WoW runs on the blockchain, you could gift your Alchemy friend 100x Felweed and 200x Earthroot with 1155 in just one transfer.

Without it, you'd need to make a total of 300 transfers + extraordinary amounts of gas fee. Yuck!

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Being able to send multiple items at once is all well and good, but what if you want to socket different number of gems into the theRobes of Riven Dreams and still want to send them all in one transfer?

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Or imagine being able to send in one transaction 9999 Cryptopunk NFTs, all of which are unique in appearance but still bounded by that Wittgensteinian familial resemblance: The "Cryptopunk-ness."

Here's where you'd need #ERC3525.

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The secret weapon of #ERC3525? The SLOT mechanism.

What is SLOT?

In #ERC3525, SLOT is a grouping mechanism that allows users to flexibly establish a common ground between every two other non-fungible items.

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Consider the two mutually non-fungible items:

· Robes of Riven Dreams + 1 Red Socket
· Robes of Riven Dreams + 1 Yello Socket

#ERC3525 lets users establish "Robes-of-Riven-Dreams-ness" as the commonality of the two and use it as a group mechanism for further operations.

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Apparently, 3525 does everything 1155 can do, PLUS even more flexibility and optionality to manage various game items.

Nevertheless, in a scenario involving the transfer of a group of highly standardized items, 1155 offers more feasibility than 3525.

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...Which brings us to the huge point in token infra: it's a myth that one token standard is definitively better than the other.

It's all about what you use it for and how you use it.

1155 works better in blockchain games; 3525's forte is finance and asset tokenization.

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In a bond issuance, a user may define a ERC3525 bond's SLOT as

· Issuer's ID
· Maturity date
· APY

Except for the face value.

So that two bond SFTs from the same issuance could be quantitatively (by the face value) added or subtracted flexibly.

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But I digress.

That's it! I hope you enjoyed the thread. If you've learned nothing, please still consider a RT - for the #Horde. :)

ERC-3525 Semi-fungible Token was recently approved by the Ethereum Foundation as a final standard. Read more here:
eips.ethereum.org/EIPS/eip-3525

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