# SFT

The essence of SAT20 lies in SFT, where FT or NFT is just one of its manifestations. The nature of SAT20's SFT stems from two aspects:

1. The base asset, satoshis, is inherently non-fungible, which can be reflected through the numbering of satoshis.
2. Satoshis can also be bound to different data, which brings unlimited possibilities for the use of SFT.

We illustrate the attributes of SAT20's SFT through the following examples:

## Pizza

SFT minted based on rare satoshis that showcases the characteristics of graphic representation. The quantity and attributes of satoshis determine the visual style of the pizza, such as a pile of pizzas, a single pizza, or a fraction of a pizza. The toppings can also change based on different satoshi attributes.

## Stablecoins

Issuing multiple sets of stablecoins with different denominations, such as $1, $10, $100, $1000, etc. Each set can mint multiple NFTs as needed, with each satoshi representing a coin. Minting stablecoins on satoshis and allowing satoshis to flow to Layer 2 networks serve as transaction media, reducing the demand for a large amount of BTC on Layer 2 networks.

## RWA (Real-World Assets)

Taking real estate as an example, a Ticker can be issued for a building, and each room can be represented as an NFT. This NFT can be further divided into multiple fractions, facilitating trading and circulation.

## Game Equipment

Game equipment can be continuously adjusted by the attributes of the satoshis that constitute the NFT, effectively activating trading.

## Summary

SFT possesses infinite potential, and Ethereum's ERC3525 is a good example of this. It demonstrates the various possibilities and applications of SFT in the blockchain ecosystem.


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