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ERC721 VS ERC1155 Token- An Ultimate Comparison Guide of Ethereum NFT Standards

Create NFT on Ethereum Blockchain

By jacob blackPublished 3 years ago 7 min read
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Every crypto enthusiast might know about the powerful blockchain - Ethereum. It is one of the best open-source blockchain platforms for developing crypto tokens, smart contracts, and decentralized applications. Ethereum’s smart contracts revolutionized the world of cryptocurrencies and this platform currently aims to standardize the industry. Mostly every blockchain enthusiast might have heard about the popular ERC20 tokens, which are basically crypto tokens developed on top of the Ethereum blockchain platform. Currently, there are plenty of Ethereum Request for Comments(ERC) standards out there. When a developer uses token standard, then developers want to define a set of rules for all kinds of things built on the Ethereum platform and one of them is non-fungible tokens (NFTs).

The non-fungible tokens are unique items or collectible which can not be interchanged on the same type. These tokens are gaining popularity in gaming, artwork, and collectible space. non-fungible tokens include various unique items, it can be either art, paintings, digital art, tweets, GIFs, videos, audio, etc. we know that non-fungible tokens are one of the latest crypto trends which made many people become rich in the NFT marketplace. However, the use cases for non-fungible tokens are beyond gaming and collectibles. In fact, many token developers are creating virtual worlds using NFTs and these types of tokens can be widely used in a variety of sectors. Such as the art industry to music, fashion, etc.

If you are already aware of non-fungible tokens and the benefits they offer, then creating your own NFT is the right choice for making profits in the crypto space. Now, with the rise of NFTs, many startups are creating and launching their own non-fungible tokens in the NFT marketplace. To create an NFT, there are two main non-fungible token standards that you can use in the Ethereum blockchain network. The first one is the ERC721 token standard, the first NFT standard in Ethereum for single editions. The second one is ERC1155, which is a more flexible NFT standard and allows for multiple editions of the same non-fungible token.

In this article, let us deeply discuss the ERC721 tokens & ERC1155 tokens and the difference between ERC1155 vs ERC721.

Now, let us quickly start this comparison guide with…

What is ERC721 Token?

ERC721 is a technical NFT standard that is more popular and familiar among startups and speculators in the NFT marketplace. The non-fungible tokens which are created using this ERC721 standard are called ERC721 tokens. These tokens are unique and are non-interchangeable with other tokens of the same type. These tokens can either be physical property or digital property. Such as tweets, paintings, artwork, GIFs, sculptures, etc. In the NFT marketplace, most of the non-fungible tokens are ERC721 tokens, that’s why ERC721 tokens are prominent and many people are launching new ERC721 tokens to attract many users.

Despite the popularity of the ERC721 standard, there are a few major limitations associated. One of the primary limitations is the difficulty level of transactions with such tokens. Acquiring a token identifier directly is not possible while using the ERC721 tokens, so it makes transactions harder. For example, if you want to send 10 non-fungible tokens to your friend or someone. Then you need to execute ten different transactions along with an individual additional charge for each transaction. So the transaction costs associated with ERC721 tokens are high.

Another major limitation is traversing ERC721 standard tokens. Every single ERC721 token in the contract needs to be traversed. So that a response can be given to the decentralized application and the user. If an ERC721 token contract has more than 1 million tokens under its registration. A user can send a transaction to the network to know the status of their non-fungible tokens. Currently, these ERC721 tokens are very popular among traders. So creating such a token with the help of the best ERC721 token development service provider will be beneficial.

Popular ERC721 Tokens in the NFT Marketplace

At this time, most of the non-fungible tokens are developed using the ERC721 token standard with the support of NFT tools and the Ethereum network. On the flip side, many ERC721 tokens are gaining popularity among crypto traders & investors with their ideal collectible value. There are several ERC721 tokens but not all the ERC721 tokens reached a good position in the NFT marketplace. Here is the list of a few best ERC721 tokens that are prevailing in the global NFT marketplace.

  • Axie
  • Crypto kitties
  • Avastar
  • VNFT
  • Swapo
  • Sorare
  • God unchained cards
  • DCL registrar

The above-mentioned tokens are the prominent ERC721 tokens and all these NFTs are completely developed on the top of the powerful Ethereum blockchain network.

Highlights of ERC721 Tokens

List of the top key highlights in the ERC721 standard tokens

  • Subscriptions
  • Affiliate program
  • Embeddable web3 check out
  • Multiple products
  • Role-based permissions
  • CLI admin tools
  • Full ERC721 compatibility

Now, let us see…

What is ERC1155 Token and How Does it Compare to ERC721 Token?

ERC1155 is a multi-token standard that is the next evolution in the NFT marketplace. ERC1155 tokens are unique tokens that are more similar to the ERC721 tokens. This standard supports both fungible and non-fungible tokens. ERC1155 tokens are faster when compared to other NFTs and more efficient to use in batch token transfers. By using Ethereum’s ERC1155 token standard, you can create a Non-Fungible & fungible token or digital asset. For instance, if you want to sell your art or painting as a non-fungible token(only one copy exists). Then you can use either ERC1155 standard or ERC721 to mint an NFT with your art or painting. In case, you want to sell several editions of your collectible art or painting, then you can use the ERC1155 token standard to make several fungible copies of the same painting.

The ERC721 standard works great for tokenization and the creation of unique non-fungible tokens. But such tokens are often slow and sometimes it might be inefficient. This is why many traders and investors turned towards ERC1155 tokens. These tokens overcome many of the limitations that are seen in the ERC721 standard tokens. The ERC1155 standard is often used for its multi-token approach. They support batch transfers of multiple tokens and it will be faster than an ERC721 token.

Each developer is able to deploy a smart contract that is often used to develop unlimited fungible and non-fungible tokens in a hassle-free manner. As we know that the ERC721 standard can produce only non-fungible tokens. It means that NFT developers need to deploy a new smart contract for each ERC721 token. On the other hand, NFT developers will use the ERC1155 standard to create a smart contract, and then they will create non-fungible tokens in no matter of time. They will utilize one smart contract for creating several fungible and non-fungible tokens.

Key Features of ERC1155 Tokens

Here I list some of the key features that you can get in ERC1155 tokens.

  • Batch transfers
  • Strict rules
  • ID substitution
  • Localization
  • Both fungible and non-fungible functions
  • High compliance
  • Faster transactions
  • Easy transfers
  • Tightened security system

Difference Between ERC721 vs ERC1155

If you are creating an NFT by using the ethereum blockchain, then you must know the difference between the ERC721 token standard and the ERC1155 token standard. Knowing the difference between ERC1155 vs ERC721 tokens will help you to choose the right token standard and create an NFT on the Ethereum blockchain. There are various benefits associated with using the ERC1155 standard when compared to the ERC721 standard token. ERC1155 standard allows non-fungible token developers to make the logic in one smart contract and develop a system in a single address. Besides, it helps users to execute batch transfers in the same contract with lower costs. The main idea behind the ERC1155 standard is that a smart contract can govern several tokens. Now, let us figure out the difference between ERC721 vs ERC1155 with a simple comparison table.

Closing Words

Both ERC721 and ERC1155 standards can be used to create non-fungible tokens. So which one is better? Some people only buy non-fungible tokens that are ERC721 standard. Because many NFT investors see it as the golden standard. On the other hand, creating an ERC1155 standard token is cheaper. Because these tokens will cut down gas fees by 90%. So it is the most affordable and preferable token standard to create an NFT. The choice is yours when it comes to ERC721 or ERC1155 token. Based on your personal preference and business needs, you can choose the standard and start your NFT business with the help of the leading Ethereum in the industry. They will assist you to create a secure NFT as Non-fungible token development service provider per your business requirements at the best price in the market.

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About the Creator

jacob black

Crypto Enthusiast

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