NFT : Token Standards ( ERC-20 , ERC-721 , and ERC-1155 )
ERC stands for Ethereum Request for Comments. But what are ERC-20, ERC-721 and ERC-1155?
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These standards have a great impact on the development of the ongoing NFT schemes.
### ERC-20 (2015) :
- It introduces the concept of fungible tokens that can be issued on top of Ethereum once satisfying the requirements.
- ERC-20 is a fungible token used for identical entities
- The standard makes tokens the same as another one (in terms of both type and value).
- An arbitrary token is always equal to all the other tokens.
- This stimulates the hype of Initial Coin Offering (ICO) from 2015 to present.
- Creating stablecoins (Tether, USDC and DAI are a few of the prime examples), ICO (Initial Coin Offering),
### ERC-721 (2018) :
- It introduces a non-fungible token standard that differs from the fungible token.
- This type of token is unique that can be distinguished from another token.
- It provides a unique opportunity for creating a marketplace for artists, gamers or basically anyone who has something valuable or unique to sell
- Further, the tokenId can be used as an input to generate special identifications such as images in the form of zombies or cartoon characters
### ERC-1155 (Multi Token Standard) (2019) :
- It extends the representation of both fungible and non-fungible tokens.
- To sum up, ERC-1155 is the hybrid between ERC-20 and ERC-721
- It provides an interface that can represent any number of tokens.
- In previous standards, every tokenId in contact only contains a single type of tokens. For instance, ERC-20 makes each token type deployed in separate contracts.
- ERC-721 deploys the group of non-fungible tokens in a single contract with the same configurations. In contrast, ERC-1155 extends the functionality of tokenId, where each of them can independently represent different configurable token types.
- ERC-1155 is the Secure Token Transfer
Due to its unique utilities, we can foresee more and more projects taking on the ERC-1155 standard.