- Overview of ERC-1155 Tokens:
- Overview of ERC-721 Tokens:
- Comparison of ERC-1155 and ERC-721 Tokens:
The Ethereum blockchain has become the backbone of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems. Two of the most popular token standards used in these ecosystems are ERC-1155 and ERC-721. While both of these standards have been designed to create and manage tokens on the Ethereum blockchain, they differ in several ways, including their purpose, functionality, and use cases!
Read out below to know a detailed comparison between ERC-1155 and ERC-721 tokens where we will explore the features and benefits of each token standard, and how they differ from each other, for you to make a suited decision based on specific needs.
What are the similarities and differences between these two types of tokens?
ERC-1155 and ERC-721 are both Ethereum-based standards for creating non-fungible tokens (NFTs), which are unique digital assets that cannot be replicated or replaced. While they share some similarities, there are also key differences between the two standards.
- Both ERC-1155 and ERC-721 are built on top of the Ethereum blockchain and use smart contracts to create and manage NFTs.
- Both standards allow for the creation of unique, non-fungible tokens with distinct properties and attributes.
- Both ERC-1155 and ERC-721 support ownership tracking, which enables users to transfer ownership of tokens to other addresses.
- ERC-1155 allows for the creation of both fungible and non-fungible tokens, while ERC-721 only allows for non-fungible tokens.
- ERC-1155 tokens are more efficient in terms of gas costs, as they can batch transfers and are designed to be more scalable than ERC-721 tokens.
- ERC-1155 tokens can have multiple properties, meaning they can represent multiple assets or types of assets in a single token. ERC-721 tokens, on the other hand, are designed to represent a single, unique asset.
- ERC-1155 tokens can be used to create gaming assets, where multiple different types of assets can be represented by a single token, while ERC-721 tokens are typically used for one-of-a-kind collectibles.
In summary, both ERC-1155 and ERC-721 are important standards for creating and managing NFTs on the Ethereum blockchain. While they share some similarities, ERC-1155 is more versatile and efficient in terms of gas costs, while ERC-721 is more focused on creating unique, one-of-a-kind assets.
Overview of ERC-1155 Tokens:
ERC-1155 is an Ethereum-based token standard that was introduced in 2018 by Enjin, a blockchain gaming company. It is a multi-token standard that allows for the creation and management of both fungible and non-fungible tokens on the Ethereum blockchain.
ERC-1155 is an extension of ERC-721, which is a standard for creating non-fungible tokens (NFTs). While ERC-721 only allows for the creation of unique, one-of-a-kind tokens, ERC-1155 allows for the creation of both fungible and non-fungible tokens. This makes ERC-1155 a more versatile and flexible standard, suitable for a wide range of use cases.
ERC-1155 tokens can have multiple properties, which means that they can represent multiple assets or types of assets in a single token. This makes them particularly well-suited for use cases in the gaming industry, where they can be used to create gaming assets such as weapons, armor, and other items that can be traded or used within the game.
Overall, ERC-1155 is a versatile and efficient standard for creating and managing tokens on the Ethereum blockchain, suitable for a wide range of use cases beyond gaming as well, such as representing real-world assets, art, or collectibles, among others.
What is the purpose of ERC-1155 Tokens?
The purpose of ERC-1155 tokens is to provide a flexible, efficient, and cost-effective standard for creating and managing both fungible and non-fungible tokens on the Ethereum blockchain.
ERC-1155 is more efficient than previous standards, such as ERC-20 and ERC-721. It uses a single smart contract to manage multiple token types, reducing gas costs and making creating and managing multiple tokens at once easier. In addition, ERC-1155 tokens can be batch transferred, meaning multiple tokens can be sent in a single transaction, further reducing gas costs.
What are the features of ERC-1155 Tokens?
- Supports an infinite number of tokens(Unlike ERC 20 and ERC-721) which require a new smart contract for each type of token.
- Supports semi-fungible tokens(Tokens that are fungible at first but become non-fungible after an event happens).
- STF feature: The ERC-1155 token standard introduces a safe transfer function which enables users to reclaim their tokens in case of a misspelt receiver’s address.
- Signing fewer transactions: If you’re using an ERC-1155 token contract, there’s no need to “approve” individual token contracts.
Overview of ERC-721 Tokens:
Due to limitations in the ERC-20 interface, William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs developed ERC-721 – The Non-Fungible Token Standard, through an Ethereum Improvement Proposal (EIP) made on January 24th, 2018.
The primary distinction between the ERC-721 standard tokens and other kinds of tokens is that the ERC-721 standard tokens have a unique value and unique information, making them non-fungible.
What is the purpose of ERC-721 Tokens?
The purpose of ERC-721 tokens is to create unique, non-fungible tokens (NFTs) on the Ethereum blockchain. Each ERC-721 token represents a specific asset or item and is assigned a unique identification number (ID).
ERC-721 tokens are commonly used for representing digital assets such as art, music, videos, and other creative works. They are also used for representing physical assets such as real estate, collectibles, and other unique items.
What are the features of ERC-721 Tokens?
- Each ERC-721 token has a unique value. They are non-interchangeable, unlike fungible tokens.
- The major distinction between the ERC-721 standard tokens and other kinds of tokens is that the ERC-721 standard tokens have unique metadata. Also, They can be created with the same method and in whatever number the user desires.
- It offers a wide range of features, including the ability to move tokens between accounts, locate the owner of a particular token, and find out how many total tokens are currently in circulation on the network.
- Compared to other token standards, ERC-721 is more complicated and has a variety of potential expansions.
Comparison of ERC-1155 and ERC-721 Tokens:
|Batch transfers||The ERC-1155 token standard enables the batch transfer of tokens from different standards(ERC 20 & ERC-721) under a single transaction.||The ERC-721 standard is inefficient in executing batch transfers since the standard is solely for NFTs.|
|Cost & time||Batch transfer of tokens helps in saving a lot of cost in terms of gas fees and time taken to execute otherwise individual transactions under different smart contracts.||The time and cost involved in executing a transaction under the ERC-721 costs more and takes more time since individual transactions are to be validated.|
|Security of tokens||The Safe transfer feature in ERC-1155 makes transactions simple and permits the issuer to reclaim tokens that were delivered to the wrong address.||In ERC-721 standard, it is impossible to revert transactions in case of transferring assets to the wrong address.|
|Support for Semi-Fungible tokens||The ERC-1155 enables the creation of semi-fungible tokens along with the support of converting digital or real-world assets into NFTs and vice-versa.||The ERC-721 standard works with Non-Fungible Tokens only.|
The way in which ERC-1155 solves the shortcomings of ERC-721 is the primary point of distinction between the two standards. ERC-1155 provides the characteristics needed for upcoming non-fungible tokens, whereas ERC-721 provided the framework for such tokens.
In terms of NFTs’ long-term potential, ERC-1155 has the advantage. Semi-fungible tokens and batch NFT transfers have been made possible by the new token standard, which was introduced in 2019. In fact, the ERC-1155 token standard can make NFTs more usable and remove obstacles.