Create your own cryptocurrency tokens and track or trade digital assets. Two main categories of smart contract tokens can be distinguished:
Fungible tokens are interchangeable, divisible, and uniform digital assets. Interchangeable, because they can be exchanged for any other token of this type. Divisible, because they can be split up into smaller units. Lastly, they’re uniform because every token has the same inherent characteristics. Fungible tokens are most often used as cryptocurrencies within a blockchain.
Non-fungible tokens (NFT’s) differ from usual fungible tokens (like an erc-20 token) in that they’re not interchangeable because of each token’s uniqueness. Secondly, they can’t be split into smaller units, making them indivisible. Thirdly, they’re non-uniform because each token has different characteristics. NFT’s are most often used as digital collectibles on the blockchain, e.g. trading cards.
For an introduction to the concept of tokens, see Tokens, Cryptocurrencies & other Cryptoassets.
Blockchain-based assets offer a list of unprecedented features over any other digital asset. By leveraging the immutable nature of blockchain, developers can ensure that the ownership, transferring, and persistence of their tokens or cryptocurrencies is just as safe-guarded as the blockchain they’re created on.
Track value of digital assets (e.g., users can receive, send, and earn tokens)
Implement token-related features, e.g. rewards, staking, or voting based on token scarcity
Leverage the established ERC-20 standard including token interoperability, exchange services, and wallet integrations