What are ERC-721 and ERC-1155
Basic for new generation token
What is an ERC 721 contract?
ERC721 is a standard for representing ownership of non-fungible tokens, that is, where each token is unique. ERC721 is a more complex standard than ERC20, with multiple optional extensions, and is split across several contracts.
ERC-721 is an open standard that describes how to build Non-Fungible tokens on EVM (Ethereum Virtual Machine) compatible blockchains; it is a standard interface for Non-Fungible tokens; it has a set of rules which make it easy to work with NFTs. NFTs are not only of ERC-721 type; they can also be ERC-1155 tokens.
What is an ERC 1155?
ERC1155 is a novel token standard that aims to take the best from previous standards to create a fungibility-agnostic and gas-efficient token contract. ERC1155 draws ideas from all of ERC20, ERC721, and ERC777. If you’re unfamiliar with those standards, head to their guides before moving on.
The ERC-1155 standard allows making massive transfers natively of the tokens included in a smart contract. In this way, if, for example, we have a series of NFT tokens or fungible tokens (or both), we can transfer several of these tokens in the same operation, making a single operation make this transfer effective.
What Makes Fungible Tokens Different From Non-Fungible Tokens?
Fungible Tokens Are Not Unique
Fungible tokens are similar to fiat currencies in that they are convertible and divisible from other tokens of the same type. For example, one dollar is equal to another dollar, and one bitcoin may be purchased in minuscule parts such as 0.00000002 BTC. ERC-20 is the Ethereum blockchain’s token standard for fungible tokens like cryptocurrency, in-game character talents, and financial assets. Furthermore, when a fungible token is traded within a Smart Contract, an Application Programming Interface (API) is implemented.
Non-Fungible Tokens Are One-Of-A-Kind
Non-fungible tokens are cryptographic assets that cannot be exchanged for another token of the same type. There is just one Mona Lisa, for example, and only one “Everyday: The First 5000 Days” artwork by Beeple, which sold for $69.3 million. Each NFT has its unique identification code as well as metadata such as value, property, or characteristics. ERC-721 is the blockchain standard that allows for the trade of non-fungible tokens such as digital artwork.
ERC 1155 Token Standard
Enjin’s ERC-1155 is a multi-token standard that allows the implementation of smart contracts for fungible, non-fungible, or semi-fungible tokens. ERC-1155, like ERC-721, allows individual tokens to include information or other features. However, ERC-1155 is the next generation of token standards, allowing the transfer of numerous token kinds at the same time. This differs from ERC-721 and ERC-20, which require the deployment of a new contract for each non-fungible or fungible token. As a result, ERC-1155 eliminates the necessity for token contracts to be approved independently, lowering transaction costs and time. Furthermore, ERC1155 allows for atomic exchanges or escrow trading of tokens, as well as the description or mixing of several token kinds inside a single contract.
ERC 721: First Standardized Interface For Creating And Trading NFTs
ERC-721, written in Solidity language, was the first standardized interface created for establishing and trading NFTs and is currently regarded as the gold standard. ERC-721 is now the most extensively used token standard that necessitates the deployment of single contacts for individual NFTs. This makes ERC-721 sluggish and costly, but it also allows you to adjust the settings of individual NFTs and provides better security. Furthermore, minting or selling NFTs using ERC-721 smart contracts requires the authors to follow tight transaction criteria.
Benefits Of ERC-1155
> Semi-fungible tokens can now be converted and traded.
In addition to fungible and non-fungible tokens, ERC-1155 allows for the deployment of semi-fungible tokens. Semi-fungible tokens can be either fungible tokens turned into NFTs or NFTs transformed into fungible tokens. Unlike ERC-20 and ERC-721, ERC-1155 is the next generation of token standards since it may transform digital or real-world assets into tokens at the same time.
> Multiple token kinds can be deployed in a single smart contract!
Traditional token standards (ERC-20 and ERC-721) required each non-fungible or fungible token to have its smart contract. The ERC-1155 token standard, on the other hand, allows users to deploy an unlimited number of token kinds (NFT, fungible, and semi) under a single contract. It also allows for large-scale token transfers within a single smart contract. ERC-1155 enables the quick transfer of cash and tokens by enabling several token IDs to be combined into a single transaction. For example, an ERC-1155 smart contract including fungible and non-fungible tokens issued by an artist reduces the effect on the network and speeds up transaction times.
> All transactions are encrypted.
The functionality of checking an acceptable or unacceptable transaction is available in smart contracts that use the ERC-1155 token standard. If the transaction fails to complete, the function ensures that the tokens are returned to the issuer’s wallet. Furthermore, this function prevents the token from being sent to the incorrect address and allows for safe and hassle-free token transfer. ERC-1155 also keeps track of everything from the time a token is created until the time it is burned.
Other Advantages Of ERC-1155
- Low gas fee: Previously, the ERC-721 token standard was notorious for a high gas fee and long transfer time. ERC-1155 standard can help cut gas fees by 90% by deploying an individual contract for different tokens.
- Enhanced DEX (decentralized exchanges) support: Unlike ERC-721, ERC-1155 can be beneficial for decentralized finance. This is because ERC-1155 comes with a built-in code that a DEX can benefit from by fulfilling some aspects of the smart contract.
- Less workload: Filling individual details of an NFT with the ERC-721 token standard makes the process monotonous and consumes much more time than needed. Fortunately, ERC-1155 addresses this issue and allows the issuer to input fewer details, thus saving time.
- Dynamic meta-data: The ERC-721 token standard uses static metadata that gets built within a smart contract. Whereas, the ERC-1155 token standard can maintain innumerable amounts of Uniform Resource Identifier or URI codes.
ERC 1155 VS ERC 721: Which One Is The Future Standard For Tokens?
Although ERC-1155 is rapidly gaining popularity because of its reduced gas charge and transaction speed, the ERC 721 standard will not be forgotten anytime soon. Individual non-fungible and fungible tokens can be released using the ERC 721 and ERC 20 protocols, respectively. The ERC 1155 standard, on the other hand, is ideal for issuing several tokens at once, as well as the option to include both fungible and non-fungible tokens. The sole disadvantage of ERC-1155 is that it keeps less reliable data to save time and money on transactions. As a result, the ERC 1155 standard will continue to gain popularity in the future for issuing a group of tokens, while older standards will be ideal for individual tokens.
Conclusion
Here we learn about ERC-721 and ERC-1155, their difference, use, and future scope, we also saw how advanced is the town life is moving and how all this will be affecting our tech world.
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