NFT Token Standards: What is The Difference Between ERC-721 and ERC-1155

Non-Fungible Tokens (NFTs) are just like digital pieces, arts, and collectibles that adorn the blockchain world. With each NFT, there’s a creative story, an event, a memory, or a simple expression of pure talent. A beneficial offshoot of blockchain technology allows us all to maintain art and the creative world in digital form.

Token standards play a crucial role in the development and adoption of NFTs. They provide a set of rules and guidelines that govern how NFTs are created, managed, and transferred on the blockchain. Regarding NFTs on the Ethereum chain (which is by far the chain with the highest trading volume), the two prominent token standards are ERC-721 and ERC-1155, each with its own set of features and advantages.

This article looks into these standards to understand their differences and implications. Let’s get into it.

What is the ERC-721 Standard?

ERC-721 stands for Ethereum Request for Comments 721, which is a standard interface for non-fungible tokens (NFTs) on the Ethereum blockchain. Unlike fungible tokens, which are interchangeable with one another, each ERC-721 token is unique and indivisible. This uniqueness makes ERC-721 tokens ideal for representing ownership of assets like digital art, collectibles, virtual real estate, and more. The ERC-721 standard was proposed by William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs in 2018 and gained widespread adoption due to its simplicity and effectiveness in representing non-fungible assets on the blockchain.

ERC-721 tokens cannot be divided into smaller units. They are whole and cannot be broken down into fractions. ERC-721 tokens represent ownership of unique assets, and ownership can be transferred from one Ethereum address to another.

What is the ERC-1155 Standard?

ERC-1155 is a token standard on the Ethereum blockchain that was proposed by Enjin. It is designed to be a more flexible and efficient alternative to ERC-721, which is the standard used for non-fungible tokens (NFTs). Unlike ERC-721, which is specifically for single, unique tokens, ERC-1155 supports both fungible and non-fungible tokens within a single contract. This means that developers can create both NFTs and semi-fungible tokens (SFTs) using the same smart contract, offering greater versatility in tokenization.

One of the key features of ERC-1155 is its ability to efficiently transfer multiple tokens in a single transaction. This is particularly useful for applications such as gaming, where players may acquire or exchange multiple items at once.

Differences between ERC-721 and ERC-1155

Ownership Model

ERC-721 tokens are renowned for their unique ownership model, where each token represents a distinct, non-divisible asset. In practical terms, this means that each token within an ERC-721 contract is one-of-a-kind and cannot be broken down into smaller units. This model is particularly well-suited for representing individual, unique assets such as digital art pieces, collectible items, or real estate properties.

Contrary to ERC-721, ERC-1155 tokens utilize a semi-fungible ownership model, offering more flexibility in asset representation. Fungible tokens are divisible and interchangeable, much like traditional currencies, while non-fungible tokens retain their uniqueness and indivisibility. This hybrid model enables the creation of multiple tokens under a single contract, each with varying degrees of uniqueness and divisibility. Ownership of ERC-1155 tokens can be singular, with one address owning the entire supply of a particular token, or shared among multiple addresses, allowing for fractional ownership.

Gas Efficiency

Gas efficiency refers to the number of computational resources required to execute a transaction on the Ethereum blockchain. In the case of ERC-721 tokens, transferring multiple tokens in a single transaction can be inefficient in terms of gas costs. Since each token transfer requires a separate transaction, conducting batch operations or managing large-scale transactions with ERC-721 tokens can incur higher gas fees.

However, ERC-1155 tokens offer superior gas efficiency compared to ERC-721, particularly for batch operations. Because ERC-1155 supports batch transfers natively, multiple tokens can be transferred within a single transaction, significantly reducing overall gas costs. This efficiency makes ERC-1155 well-suited for applications involving frequent token transfers or managing large quantities of assets. For example, gamers might want to make multiple transactions at once.

Flexibility in token types

ERC-721 tokens are primarily designed to represent unique, non-fungible assets, making them ideal for use cases where distinct ownership and scarcity are paramount. Examples of ERC-721 applications include digital art marketplaces, collectible card games, and tokenized real estate.

ERC-1155 tokens offer greater flexibility in token types, allowing developers to create both fungible and non-fungible assets within the same contract. This versatility enables a wide range of use cases, including tokenized currencies, in-game items, and asset bundling.

Batch transfers

Batch transfers are not inherently supported by ERC-721, as each token transfer requires its own transaction. This lack of native support for batch operations can make managing multiple tokens cumbersome and inefficient, especially for applications with high transaction volumes.

In contrast, ERC-1155 tokens natively support batch transfers, allowing multiple tokens to be transferred within a single transaction. Batch transfers on ERC-1155 improve asset management and scalability, particularly for applications with large numbers of token transactions.

How batch transfers work:

NFT batch transfers are aimed at achieving cost efficiency and timeliness, especially when you have a large collection or need to distribute NFTs to multiple recipients.

Gas fees on several blockchain networks, particularly Ethereum-based NFTs, are expensive and may be unsustainable for users who have to complete several transactions, as you would be required to pay separate gas fees for each transaction.

Fortunately, batch transfer software like the Cwallet Bulk payment tool solves this problem by allowing users to send fungible and non-fungible cryptocurrencies at once without paying gas fees for each transaction. So, you can easily distribute your collections to other collectors or your community members without handling each transfer differently.

The Cwallet Bulk payment tool also allows you to make NFT bulk transfers from your MetaMask wallet and save time and money.

Managing Your NFTs with Cwallet

Knowing all of these differences and how they affect you is important; however, having a wallet that supports your NFT tokens is even more important.

With Cwallet, you can easily buy, sell, and swap NFTs on Cwallet. Regardless of whether you have a non-fungible or semi-fungible token, you can easily manage and transfer them with Cwallet.

With Cwallet, you can enjoy cheap, cost-effective transactions, even on the high-gas Ethereum Network.

The best part is that Cwallet transactions are ABSOLUTELY FREE! You aren’t required to pay anything to sign up, use the bulk payment service, or use other Cwallet tools!

Don’t delay! Explore Cwallet today and manage your NFT assets with ease!