Token standards: ERC-20 vs. ERC-721 vs. ERC-1155 (2024)

FAQs

What is the difference between ERC20 ERC-721 and ERC-1155? ›

In summary, ERC20 is best suited for fungible tokens, ERC721 supports non-fungible assets, while ERC1155 improves upon ERC721 by facilitating both fungible and non-fungible tokens on a single contract.

While ERC-721 has a longer development history and is well-suited for non-fungible tokens representing unique assets, ERC-1155 offers greater flexibility and efficiency in managing different token types within a single contract.

ERC-721 focuses on making each token unique and represents the claim of something special you can't copy. It's great for things like one-of-a-kind digital art or rare collectibles. ERC-1155 is more flexible. It lets you build NFTs that can be either exclusive or interchangeable.

The key difference between ERC20 and ERC721 tokens lies in their fungibility. ERC20 tokens are fungible and represent a uniform asset, while ERC721 tokens are non-fungible and symbolize a set of unique assets. Additionally, ERC721 tokens cannot be divided into smaller units.

According to EIPs, ERC721 and ERC1155 will implements EIP165. Therefore, we can use the supportsInterface of EIP165 to check whether the contract is ERC721 or ERC1155. The interface id for ERC1155 is 0xd9b67a26 , while the interface of ERC721 is 0x80ac58cd .

ERC-1155 is a flexible token standard on the Ethereum blockchain that supports the creation of fungible, non-fungible, and semi-fungible tokens within a single contract.

Erc-20 is the most widely-used token standard, and it defines a set of rules for creating fungible tokens (tokens that are interchangeable with each other) on the ethereum network.

Game developers can utilize ERC-1155 tokens to mint in-game currencies, items, and collectibles. Projects like Enjin have leveraged ERC-1155 tokens to enable seamless trading and ownership of virtual assets across different games, enhancing interoperability and user experience within gaming ecosystems.

What are the Advantages of ERC-1155? ERC-1155 is known for its efficiency, adaptability, reduction of redundancy, security features, and support for various token types. It enables the transfer of multiple token types (fungible, non-fungible, and semi-fungible) in a single transaction.

Is ERC-1155 a smart contract? ›

ERC1155 also allows for multiple NFT collections to be launched in just one smart contract instead of creating a different contract for each collection; this increases efficiency in smart contract construction and minimizes the transaction count, which is very important as it consumes less blockchain space.

ERC-1155 is a smart contract interface representing fungible, semi-fungible, and non-fungible tokens. ERC-1155 can perform the function of ERC-20 and ERC-721 and even both simultaneously. Each Token can represent a different value based on the nature of the token; fungible, semi-fungible, or non-fungible.

Finally, ERC-721 has limited functionality, as it only supports the creation and management of non-fungible tokens. On the other hand, ERC-1155 supports the creation and management of both fungible and non-fungible tokens, making it more versatile and flexible for a wider range of use cases.

The ERC20 contract from OpenZeppelin is imported and used as a base. MyToken is the name of your contract, and it extends the ERC20 contract. The constructor function initializes your token with a name ("MyToken") and a symbol ("MTK"). The _mint function in the constructor mints an initial supply of tokens.

ERC-20 tokens should not be mistaken for ether (ETH), the native cryptocurrency of the Ethereum blockchain. While ETH is used to pay for computations and network resources, ERC-20 tokens can be created to represent any real-world or virtual asset.

ERC-1155 definition: A versatile token standard on the Ethereum blockchain allowing multiple assets, such as gaming items, to be managed in a single smart contract. ERC-1155 is a multi-token standard on the Ethereum blockchain.