Comparing NFT Standards: ERC-721 vs ERC-1155

The development of non-fungible tokens (NFTs), which are unique virtual collectibles verified on the blockchain, stands out as one of the most remarkable and ambitious applications of blockchain technology. To streamline the creation of NFTs, developers have established standardized procedures.
For Ethereum and other blockchain networks utilizing the Ethereum Virtual Machine (EVM), ERC-721 and ERC-1155 have emerged as the predominant NFT standards. In this comprehensive analysis, GetBlock compares these two standards, outlining their advantages and disadvantages.

Exploring NFT Standards: ERC-721 and ERC-1155 Key Features

Similar to other Ethereum Request for Comments (ERC) standards, ERC-721 and ERC-1155 are widely recognized frameworks for minting tokens on Ethereum. They are employed to create both non-fungible and semi-fungible tokens.

• ERC-721 and ERC-1155: These acronyms stand for "Ethereum Requests for Comment" and denote the prevalent NFT standards applicable not only to Ethereum but also to numerous Ethereum Virtual Machine (EVM) blockchains like Polygon, BSC, and Arbitrum.
• Standardized Creation: Both ERC-721 and ERC-1155 delineate the standardized process for generating non-fungible tokens within blockchain networks.
• Historical Context: ERC-721 was introduced in late 2017 by Dapper Labs, the creators of CryptoKitties, a pioneering mainstream commercial NFT project. In Q2 of 2018, ERC-1155 was conceptualized by Witek Radomski, the co-founder, and CTO of Enjin Coin, a leading blockchain dedicated to NFTs.
• Key Differences: While ERC-721 and ERC-1155 share similarities, ERC-1155 introduces enhanced functionalities. Smart contracts under ERC-1155 can support diverse functions. Moreover, ERC-1155 tokens can be transferred in batches, enabling multiple tokens to be wrapped within a single transaction.
• Semi-Fungible Tokens: Notably, ERC-1155 can be employed for semi-fungible tokens and incorporates a "safe transfer" mode, facilitating transaction reversals.

As of 2023, both standards are widely utilized in NFT marketplaces, gaming platforms, and metaverse decentralized applications (dApps) across Ethereum-like blockchains.

Understanding NFTs:

Non-fungible tokens (NFTs) are unique cryptocurrency tokens that cannot be interchanged with one another. Unlike fungible tokens, which can be easily swapped on a one-to-one basis, each NFT possesses distinct characteristics and is securely recorded on a specific blockchain through cryptographic contracts.

• Fungible Tokens: The majority of cryptocurrency tokens, such as USDT stablecoins, Bitcoin (BTC), and Ethereum (ETH), are fungible. This means that 1 unit of a token is identical in value to another unit of the same token, regardless of the issuing blockchain.
• Non-Fungible Tokens: NFTs, on the other hand, are exceptional in that each token is unique. These tokens can be associated with specific content like videos, images, texts, and more. Due to their distinct features, NFTs, such as Bored Ape Yacht Club #1111 and Bored Ape Yacht Club #2222, cannot be exchanged on a one-to-one basis since they are inherently different and verifiable.

The popularity of NFTs surged between 2020 and 2021. Initially, many NFTs represented digital collectibles, often characterized by primitive artworks. Notable NFT collections during this period included Crypto Punks (“Punks”), Bored Ape Yacht Club (“Apes”), Mutant Ape Yacht Clubs (“Mutants”), and Azukis, which captured significant attention and hype within the NFT market.

Understanding ERC in Web3 Development:

In the realm of Web3 development, ERC stands for Ethereum Request for Comments, representing a standardized approach for creating tokens within the Ethereum ecosystem and other blockchains utilizing the Ethereum Virtual Machine (EVM).
In essence, rather than reinventing tokens from scratch repeatedly, Ethereum developers reached a consensus on a uniform procedure for token creation. This standardization ensures consistency and efficiency across token development processes.
On a broader scale, ERCs are integral components of EIPs, known as Ethereum Improvement Proposals. These proposals serve as recommendations for advancing Ethereum networks. For instance, EIP-20, defining the standard for EVM-based cryptocurrencies, laid the foundation for ERC-20 tokens, marking a significant milestone in the evolution of token standards within the Ethereum ecosystem. Similar progressions have been made with subsequent EIPs and their corresponding ERCs.

While there are plenty of token standards for Ethereum (ETH), ERC-20 and ERC-721 remain the most widespread standards.

Understanding ERC-721:

ERC-721 is a crucial Ethereum (ETH) token standard that revolutionized the concept of non-fungible tokens (NFTs). Proposed in 2017 by Dapper Labs, the creative force behind CryptoKitties, the first widely recognized mainstream NFT project, ERC-721 introduced a groundbreaking framework.

The primary focus of ERC-721 was to preserve the uniqueness of each token, preventing replication and ensuring the transparent recording of ownership history. Unlike fungible tokens, ERC-721 tokens are distinct entities, each with its own unique value and characteristics. This distinctiveness was safeguarded, allowing anyone to verify ownership histories through public platforms like Etherscan.
Designed for seamless transfer between on-chain wallets, akin to ERC-20 tokens, ERC-721 tokens are easily traceable to specific owners. Their transparent supply mechanism ensures clarity regarding the quantity of tokens in circulation.
Most NFTs serve as digitized certificates of ownership for various forms of content, including images, videos, photos, in-game assets, and more. Imagine an ERC-721 contract representing a tokenized version of the GetBlock logo, embodying a unique digital asset with distinctive ownership properties.

In general, ERC-721 is the most widespread NFT standard suitable for basic speculative, entertainment, GameFi, and Play-to-Earn use-cases.

Understanding ERC-1155:

ERC-1155 stands as another pivotal token standard designed for non-fungible assets. Introduced in 2018 by Witek Radomski, the CTO of Enjin Protocol, ERC-1155 was born out of the need for a versatile token standard that combined both fungible and non-fungible token features.
The unique aspect of ERC-1155 lies in its ability to represent "semi-unique" assets, a feature particularly valuable in on-chain games. Picture it akin to general admission tickets for specific concerts: these tokens aren't tied to exact seats (exhibiting a "fungible" quality) but cannot be exchanged for tickets to a different concert (displaying a "non-fungible" characteristic). ERC-1155 tokens allow the transfer of assets in batches, enhancing efficiency. Moreover, they support the "safe transfer" option, providing the capability to reverse cryptocurrency transfers sent to incorrect addresses, ensuring a level of security and flexibility in transactions.

ERC-721 vs ERC-1155: A Neutral Comparison

Let's delve into a fair comparison of the technical features, utility aspects, and security designs inherent in ERC-721 and ERC-1155 tokens.

ERC-721 vs ERC-1155: Fundamental Concepts
In essence, both ERC-721 and ERC-1155 serve as cryptocurrency token standards within the Ethereum and EVM ecosystem blockchains. Their primary purpose is addressing the issue of fungibility, ensuring the uniqueness of each crypto token. Both standards are commonly associated with non-fungible tokens (NFTs).
However, it's crucial to recognize the nuanced differences between ERC-721 and ERC-1155 regarding their approach to fungibility. ERC-721 stands as the standard for "classic" NFTs, where each token is inherently unique and cannot be exchanged for other tokens.
On the contrary, ERC-1155 offers a more flexible approach. It caters to semi-fungible tokens, blending the functionalities of ERC-721 and ERC-20 (fully fungible) assets. ERC-1155 can also be converted into non-fungible assets, a capability not present in ERC-721.

ERC-1155: The "Multi Token Standard
Often referred to as the "Multi Token Standard," ERC-1155 is capable of representing both fungible tokens (similar to ERC-20) and non-fungible tokens (similar to ERC-721) within a single smart contract. It essentially expands upon ERC-721, offering a richer array of functions.

ERC-721 vs ERC-1155: Technological Advancements and Security
ERC-1155 introduces innovative features to enhance functionality. Notably, it supports "batch transfers," enabling multiple tokens to be transferred in a single transaction. This significantly improves gas efficiency, as only one gas fee is incurred, unlike ERC-721, where each transfer necessitates a separate fee.

Additionally, ERC-1155 employs a different metadata approach. While ERC-721 assigns individual metadata to each token, ERC-1155 allows large groups of tokens to share metadata. This feature proves invaluable for minting and transferring semi-fungible tokens.

Moreover, ERC-1155 supports native batch functions like balanceOfBatch and safeBatchTransferFrom, streamlining operations involving multiple tokens. It adopts a Uniform Resource Identifier (URI) pattern, allowing token metadata definition either on-chain or off-chain (in IPFS), offering versatility in metadata management.

ERC-721 vs ERC-1155: Diverse Applications
The technical disparities between ERC-721 and ERC-1155 have paved the way for diverse applications in the realms of GameFi, trading, Play-to-Earn, and more. ERC-721 caters to NFT collections associated with artworks, videos, texts, and images, prioritizing uniqueness over gas efficiency.

Conversely, ERC-1155 finds its significance in GameFi, particularly for in-game assets. It allows seamless transactions of fungible assets within specific games while ensuring they retain their unique attributes. Additionally, ERC-1155 holds potential in applications requiring verified and cryptographically secure documents, certificates, and diplomas, leveraging shared metadata for enhanced authenticity.

As the NFT landscape continues to grow, the utility of ERC-1155 is expected to expand in tandem with increased adoption.

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In Conclusion:

In summary, ERC-721 and ERC-1155 stand as two pivotal Ethereum Virtual Machine token standards prominently utilized in the digital collectibles arena. Proposed by Dapper Labs in 2017, ERC-721 laid the foundation, while ERC-1155, introduced by Enjin in 2019, brought forth groundbreaking features.
Notably, ERC-1155 surpasses its predecessor with an array of advanced functions such as safe ("reversible") transfer, batch transfer, and shared metadata. These capabilities empower developers with unprecedented flexibility, ensuring seamless operations, especially when managing diverse and extensive token sets within a single application or platform.
ERC-1155, with its enhanced functionality and efficiency, has emerged as a versatile choice in the realm of digital collectibles, revolutionizing the way we interact with unique tokens in the digital landscape.

ERC-721 vs ERC-1155: Frequently Asked Questions

In this brief FAQ, we will address common queries regarding the technical features and possibilities offered by ERC-721 and ERC-1155 tokens on the Ethereum blockchain.

What are ERC-721 and ERC-1155 tokens?
ERC-721 and ERC-1155 represent the prevailing non-fungible token standards for Ethereum and other programmable blockchains utilizing the Ethereum Virtual Machine. ERC-721, introduced in 2017 by Dapper Labs, paved the way, while ERC-1155, showcased by Enjin in 2019, brought advanced features.

How do ERC-721 and ERC-1155 differ?
In essence, ERC-721 and ERC-1155 employ slightly varied technological architectures. ERC-1155 is a more sophisticated standard: it facilitates "safe transfers," supports batch transfers, and accommodates semi-fungible tokens. Furthermore, it has the capability to convert NFTs into semi-fungible tokens, making it notably versatile.

ERC-721 and ERC-1155: Which one is better?
The choice between ERC-721 and ERC-1155 depends on specific requirements. ERC-1155 is a technologically advanced standard that combines the strengths of ERC-721 and ERC-20. It is resource-efficient, feature-rich, and highly adaptable, making it the preferred choice for many applications.

Are ERC-721 and ERC-1155 tokens scams?
No, both standards are inherently legitimate and have been rigorously tested by the Ethereum community. However, it's crucial to exercise caution, especially in the NFT markets, as they can be susceptible to manipulations and scams. Therefore, prudent trading practices are strongly advised when dealing with ERC-721 and ERC-1155 tokens.