The other most common Ethereum token standard provides the opposite utility to a fungible token. It creates a form of value that isn’t interchangeable but is unique, a Non-Fungible Token aka an NFT.
You would have to be living off-grid not to have heard mention of NFTs. NFTs function as receipts of ownership for things like artwork or a plot of land in both digital and physical formats. Two separate ERC standards describe NFTs: ERC-721 and ERC-1155.
What is the ERC-721 standard?
Because NFTs follow a standard, they give anyone with an Ethereum supported wallet the opportunity to tokenise and exchange almost any unique item of value. The focus to date has been on digital art, which encapsulates the crypto culture, Cryptopunks or Bored Apes, but NFTs are powering all kinds of other applications:
- In-game items & characters
- Plots of land in the Metaverse
- Deeds of ownership for physical properties
- Ownership of Songs, Albums or Digital Media
Though ERC-20 and 721 are by far the most commonly used Ethereum token standards, several others play an essential role in scaling Ethereum’s use cases.
ERC-1155 the multi-token standard
ERC-1155 is a multi-token standard that enables a Smart Contract to support fungible, non-fungible and specific configurations of both token types. It also improves token transfer through batching, allowing transfers, approvals, and balance queries to be applied in batches rather than individually.
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