Last time, we introduced and explained the ERC-21 standard, a must-know in the world of NFTs. This time, we will elaborate more on another very important and popular token standard – Ethereum Request for Comment 1155.
Made by Enjin co-founder Witek Radomski for use on the Ethereum blockchain, the creation of the ERC-1155 token was a big milestone in the world of crypto. It was able to take important characteristics of ERC-20, ERC-721, and other previous tokens, to create new opportunities to develop and use digital assets.
As token standards entail a strict set of rules that are required for a smart contract to work, ERC-20 and ERC-721 tokens are massively different and are not interchangeable, which forces smart contracts to be changed entirely to be able to support certain functions. The advantage of the ERC-1155 token standard is that it encompasses the most prominent features of other coins, to create a wider range of use for a single smart contract.
ERC-1155 tokens are capable of many things, including the abilities of previous token standards. However, the most prominent features are its ability to create tokens of different fungibilities within one smart contract including semi-fungible tokens (SFTs), and transfer them together, all in one transaction.
Fungible and non-fungible tokens are relatively straightforward, as they have been around for a relatively longer period of time, and traded daily. With the creation of the ERC-1155 token standard, semi-fungible tokens also became a reality.
A potential and easily understood use case and explanation of semi-fungible tokens is the example of an event ticket or coupon. With these items, once they are redeemed for their purpose, they will no longer hold any real value anymore.
Flexibility of Fungibility
This feature can be utilized for creating in-game assets for blockchain games. For example, assets such as weapons or skins can be fungible (meaning there are several copies that have the same value and be swapped), but also have non-fungible features as a group. This allows greater flexibility and convenience for developers, who are now able to simultaneously release fungible and non-fungible tokens under one smart contract.
Coin Transfer Capabilities
An atom swap is the name of the transfer/exchange of cryptocurrencies from different blockchains, without the use of a third-party intermediary. ERC-1155 tokens have the capability to be bundled and traded in one atomic swap transaction, to 1 person or more. This gives traders the convenience and cost effectiveness of transferring multiple different tokens at once to several people. For visual representations, please see the diagram below, created by Enjin.
Photo Credits: Enjin – Atom swap of different coins at once.
Photo Credits: Enjin – Transfer of different coins to multiple wallets, under one transaction.
Although the unique capabilities of the ERC-1155 token standard do not span several pages, the implications of such abilities has given it the reputation of being the “gold standard” of development on NFT platforms. The difference between ERC-1155 from other token standards has given users value in several important areas, such as support for multiple tokens, gas fee reduction, batch transfers, and more! So, the next time you need to analyze the potential of certain NFTs and cryptocurrencies, you have one more consideration factor!