dcSpark, a product-based blockchain startup, has announced Fracada, a new Cardano-based project. Its source code will be made available on Tuesday.
With the help of the Plutus programming language, Fracada will be able to convert non-fungible tokens into “fractions.”
Fractionalization has emerged as a new trend in the NFT sector, allowing those who cannot afford the entire transaction to participate.
In layman’s terms, the process of severing expensive NFTs can be compared to dividing a public company’s equity into a large number of shares.
Owners of F-NFTs, on the other hand, should not expect a return on their investment. Otherwise, token issuers may face regulatory action for failing to comply with security laws, according to David Carlisle of Ellipti:
Fractionalization raises a number of questions, such as whether people participating in the purchase through fractionalization are ultimately functioning as a “investment syndicate” expecting a return on their investment.
According to ULTCOIN365, dcSpark has also recently begun work on an Ethereum Virtual Machine-compatible sidechain on the Cardano blockchain.