Understanding ERC-1155 Token and ERC-721 Tokens in NFTs

Non-fungible tokens (NFTs) have grown in popularity within the digital assets sphere, mainly powered by the Ethereum blockchain network. Two widely known token standards include the ERC-1155 and ERC-721, which play crucial roles in defining how these tokens work.

What is an ERC-721 Token?

ERC-721 is a free, open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain network. It was one of Dieter Shirley’s main inspirations, which contributed to the widespread use of NFTs. These tokens are differentiated from each other and can be owned individually.

For easy comprehension, think about ERC-721 tokens like unique collectibles. Each token, although it falls under the same category, has differing attributes that grant it unique value. A good example of this is the CryptoKitties game, where each digital kitty is an ERC-721 token with distinct traits.

What is an ERC-1155 Token?

It’s common to refer to Enjin’s ERC-1155 token standard as a multi-token standard. This means it can represent both fungible tokens (like ERC-20 tokens) and non-fungible tokens (like ERC-721 tokens). Thus, it introduces a new way to recognize and manage assets in a more efficient, effective, and multi-functional manner in Ethereum’s smart contract platform.

The beauty of ERC-1155 is the flexibility it offers. With this standard, a single contract can produce and manage an almost infinite number of tokens.

Key Differences Between ERC-1155 and ERC-721

Single vs. Multi-Token Standard

ERC-721 is a single-token standard, meaning each token minted has its own, unique contract. In contrast, ERC-1155 is a multi-token standard that can produce many tokens from a single contract, thereby making it more versatile and less resource-demanding.

Efficiency

Sending multiple ERC-721 tokens in a bulk transfer requires individual transactions for each token, which increases the cost and time. Conversely, ERC-1155 enables batch operation, which means several tokens can be sent in a single transaction, saving time and reducing gas fees.

Flexibility

ERC-721 is strictly for NFTs, so each token is unique. Meanwhile, ERC-1155 is more flexible; it can create both fungible tokens (FTs), having identical properties, and non-fungible tokens (NFTs), where each token possesses unique characteristics.

Ending Note

Both ERC-721 and ERC-1155 play pivotal roles in NFTs and have contributed to their massive growth over the past few years. While ERC-721 was significant for its pioneering role in the NFT space with distinctive tokens allowing individual ownership, ERC-1155 has taken it a step further with its ability to handle FTs and NFTs, optimizing efficiency, reducing costs, and providing greater flexibility for token creators and users alike. As an NFT trader or investor, understanding these differences is vital in making informed decisions.