78% of all non-fungible token (NFT) transactions are on the Ethereum blockchain. While we are witnessing more NFT projects being built on other blockchains, the vast majority utilize the ERC-721 token standard, specialized for NFTs. But have you heard about its variations?
Read: Your Guide to NFTs
What is ERC-721?
The ERC-721 token standard was proposed by William Entriken, Dieter Shirley, Jacob Evans, Nastassia Sachs — who felt that NFTs deserve a standard of their own — and later created in 2018.
Any token under this standard represents the value of a non-fungible digital asset on Ethereum. They are non-identical and thus not interchangeable with another similar asset. While many NFTs are PFP projects, ERC721 is also widely used in GameFi as in-game assets, and as virtual real estate.
Launched in 2019 by Witek Radomski, who is CTO of NFT development platform Enjin, ERC1155 is an all-inclusive token standard.
ERC-20 and ERC-721 require a separate contract to be deployed for each token type or collection. As developers — especially in GameFi — create thousands of token types for in-game activities, this may lead to redundant code on the blockchain or limited functionality. ERC1155 was created to solve this.
It introduces new functionality:
- Development of non-fungible and fungible assets
- Developers can code multiple fungible or non-fungible token types in one contract
- Users can trade or transfer multiple tokens in a single transaction to save on transaction costs
- Anyone building an ERC1155 contract can allow the public to create their own tokens using it
Microsoft’s digital badge rewards program Azure Heroes, ERC-1155 token standard
adidas Into the Metaverse (Phase 1), ERC-1155 token standard
Created by the team behind NFT PFP project Azuki, ERC721A enables the minting of multiple NFTs for the same cost of minting a single NFT. This is useful for combating high gas costs when minting popular NFT projects on Ethereum.
Estimated gas saved, assuming 300 gwei and $3500/ETH
This smart contract improvement was arguably one reason why Azuki received so much attention.
The founder of NFT analytics project Exodia, Elie Steinbock, developed ERC721R, which introduces a groundbreaking refund option for NFTs. Steinbock’s motivation came from preventing rugpulls and establishing trust within the NFT community.
Exodia implemented the standard with a 14-day refund period that 5% of minters used. Steinbock also cited the example of Curious Addys’ Trading Club, who implemented the standard with a 100-day refund period and a 10% refund rate.
That said, users will still have to pay gas to mint and refund. Twitter crypto personality Popeye also said that the standard has ‘fundamental flaws’.
Tweet credit: @PopeyesNFTs
Whichever the case, it’s clear that changes are afoot for Ethereum token standards. Their evolution would bring advancements for the Ethereum blockchain in the coming years.
The views expressed in this article are the author's alone and do not necessarily represent the views of ApolloX.
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