Creating a token

Before we start, what kind of assets can I tokenise though?

Anything that can be independantly audited with an offchain liquidity supply.

Setting up and minting SFT tokens involves creating 'asset classes', defining schemas, utilizing IPFS and blockchain technology, and maintaining transparency through regular audits.

1. Setting up a new SFT

When it comes to setting up a new Semi Fungiable Token (SFT), the first step is to create an empty token. At this point, no roles or mints have been established.

2. SFT Roles

Once you have your token, it's essential to choose roles to set authorities for that tokens function, for example who can mint new tokens. More info. explaining each role can be found here.

3. Minting/ redeeming

Minting involves creating a new batch of tokens; this process requires specific information about what you're minting, using a chosen asset class. An asset class is variations of that asset, such as in the case of a gold token, it's weight and carat -supporting documentation is crucial.

Note: this documentation is public. Expect regular audits of your token against real-world assets to ensure accuracy and compliance.

After minting a batch amount, you receive 2 things of that same amount: ERC1155 tokens Non Fungiable Tokens (NFT) and ERC20 Fungiable Tokens (FT) tokens. The ERC20 represents something tradable within the SFT ecosystem.

ERC20 is an Ethereum standard, it generates an ERC1155 in the same quantity. An ERC1155 is a non-fungible token (NFT) serving as a receipt for the minted assets.

More on understanding the Asset Class

To initiate minting, you must select from an asset class you have already made, or make a new one.

Create an asset class by selecting 'New asset class.'

Labeling Asset Classes

Asset class labels help distinguish different categories. For instance, you could have 'Canadian Gold Bars' as one label and 'Australian Gold Bars' as another.

Schema - Structuring Content

A JSON schema defines the structure of content, ensuring consistency. It specifies fields like weight, purity, and size for a gold bar, maintaining uniformity within an asset class. There are many resources available online to create and understand JSON schemas better. We recommend starting here.

Once you have your schema, paste it into the system and click 'Create new asset class'. This data is then added to IPFS. Note that IPFS support for personal setups is on the roadmap.

The Role of IPFS and Blockchain

IPFS (InterPlanetary File System) stores data and assigns a hash. This hash is recorded on the blockchain, making it crucial. Any IPFS node can access content associated with this hash.

This combination of IPFS and blockchain ensures public and permissionless access to audit information. Individuals worldwide can review the data without any restrictions.

Subgraph and Blockchain

Subgraft is the technology used to read the blockchain, but its specifics are not as vital as the fact that all the information is stored on the blockchain. Even if Subgraft were replaced, the data would remain accessible on the blockchain.