Referral program is live!
Learn More ➤
A token standard or smart contract is the feature of the token. Ethereum token standards start with the abbreviation ‘ERC..’ The acronym stands for Ethereum Request for Comments. ERCs are application-level standards that contain name registries, libraries, token standards, and more.
NFTs are digital tokens that represent ownership of items. They let us tokenize items such as audio and video. Each NFT has a unique code for identification and interaction with other tokens on the blockchain. Furthermore, NFTs can be applied to virtual assets for monetization.
The NFT space has gotten bigger, with many projects reaching outrageous floor prices — the lowest price an NFT can be sold. But, before launching your collection, we recommend understanding well-known NFT token standards and terminologies.
A token standard or smart contract is the feature of the token. For context, smart contracts are self-executing codes that contain data and instructions. There are many standards on different blockchains. The popular categorization would be fungible and non-fungible tokens.
For context, fungible items are mutually interchangeable with another, e.g., Bitcoin, a $100 bill. You cannot interchange non-fungible tokens for another, hence their uniqueness. With the increase of successful NFT projects, the Ethereum blockchain has become popular among creators. Now, most NFTs get deployed on Ethereum.
Ethereum token standards start with the abbreviation ‘ERC..’ The acronym stands for Ethereum Request for Comments. ERCs are application-level standards that contain name registries, libraries, token standards, and more. All Ethereum code is built on ERC, and anyone can create/develop their tokens. At the same time, ’20, 223' is the identification suffix number for the proposal.
The first Ethereum token standard was ERC-20. ERC-20 tokens have great flexibility. Yet, the token standard rules must be followed on the network for the token to interact with other tokens. ERC-20 tokens function like regular crypto. But, you can only use them on Ethereum. Additionally, they are tokens meaning they provide access and utility to holders.
The most popular NFT standards on Ethereum are ERC-721 and ERC-1155.
This standard creates NFTs for single assets. Each ERC-721 token contains data about the item and transaction history. ERC-721’s main purpose is to register ownership of the asset on the blockchain. Also, ERC-721 handles each NFT resale royalty payment as it records transaction history.
ERC-1155 is a universal smart contract as it works with ERC-20 and ERC-721 tokens. You can create, hold, and manage non-fungible and fungible tokens. Also, ERC-1155 can offer escrow services for marketplaces.
It is important to note that ERC-1155 is modeled after previous token standards — ERC-20 and ERC-721. However, it came with its improvements. For example, with ERC-721, you have to deploy a separate smart contract for each NFT collection you want to mint. This anomaly filled Ethereum with unnecessary transaction data, leading to more network congestion. Also, the tokens had limited functionalities by separating each contract into different addresses.
ERC-721 is the most recognizable and first used NFT standard. The standard has an interface that allows you to create, trade, and manage your NFTs. It is important to note that ERC-721 tokens require at least two fields (name and image) to display the NFT on the blockchain. The NFT metadata standard dictates the fields. Furthermore, the standard does not restrict adding functions and features to the NFT.
A key feature of NFTs is that they do not contain the digital assets themselves but just point to the location where they are actually stored. This means the blockchain does not need to host the data, and rightfully so: blockchain is not designed to store large amounts of data like images or documents. That’s why the NFT smart contract usually references off-chain resources.
While ERC-721 has been great for NFT deployment, ERC-1155 brings novel improvements. ERC-1155 is an improvement of ERC-721 since it does not only work for NFTs but also for semi-fungible ones. ERC-1155 allows the creation of semi-fungible tokens. However, what are semi-fungible tokens? They are tokens that combine all properties of previous tokens. Think of it as having the best of both worlds.
That said, at Zero Code NFT, we offer some contract types for your NFT development, such as:
What’s more, you do not need any smart contract development skills. We provide you with all the tools you need, plus an easy-to-use dashboard for managing your project.
To get started, book your call with Ihor Bodnarchuk, Founder & CEO of Zero Code NFT.
.png)