Non-Fungible Tokens on Bitcoin SV
Our previous token solution aims at fungible tokens. We invent another solution to cope with non-fungible ones. They can represent unique and non-divisible assets, such as real estate and collectibles.
Similar to fungible tokens, inside each UTXO, there are two parts associated with a non-fungible token in the data part of the token contract:
- A public key: to control issuance or transfer of a token
- An integer: to uniquely identify a token.
Again, the token in a UTXO is transferred by signing using the private key corresponding to the public key. The difference is that each UTXO only stores one unique token, instead of multiple exchangeable/fungible tokens.
One special token UTXO containing the issuer can be split into multiple UTXOs to issue new tokens. Below is an example of splitting into two and thus issuing a new token i to Alice.
The relevant code is listed below with self-explanatory comments inline.
A token in a UTXO can be transferred as follows.
The relevant code is listed below.
The following diagram shows the operation of a non-fungible token.
We have only shown the basics of non-fungible tokenization. It is straightforward to extend it, e.g.,:
- Issue multiple new tokens at once in one transaction
- Transfer multiple tokens in a single transaction
- Place a cap on total supply
- Burn tokens