ERC-721 Definition
ERC-721 is a free, open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain. While most tokens are fungible (every token is the same as every other token), ERC-721 tokens are all unique.
ERC-721 Key Points
- The ERC-721 standard is used for creating non-fungible tokens (NFTs) on the Ethereum blockchain.
- Every ERC-721 token is unique and can represent ownership over an asset, digital or physical.
- ERC-721 tokens have gained popularity through their use in virtual reality platforms, games and collectibles.
What is ERC-721?
ERC-721 is a standard for representing ownership of non-fungible tokens, where each token is unique compared to the other tokens. Think of them as rare, one-of-a-kind collectables. This ability to ascribe unique characteristics to each individual token has opened up a whole new world of possibilities for blockchain applications, particularly in the world of gaming and digital collectibles, real estate, identification and voting systems.
Who Uses ERC-721?
ERC-721 tokens are utilized by developers building decentralized applications (dApps) on the Ethereum blockchain that require each token to be unique. These dApps include games like CryptoKitties which uses ERC-721 tokens to represent ownership of the unique digital cats, digital art platforms that allow artists to tokenize their work as unique digital assets, and platforms for tokenising real world assets like properties or vehicles.
Where is ERC-721 Used?
ERC-721 tokens are intrinsically tied to the Ethereum blockchain, where they are created and traded. Thus, they can be used wherever Ethereum is accepted and particularly excel in use cases that need to leverage the transparency, security, and immutability properties of blockchain technology.
When Was ERC-721 Created?
The ERC-721 standard was proposed by developer Dieter Shirley in late 2017 and was quickly adopted by the broader Ethereum community, despite not being formally finalized until June 2018.
Why is ERC-721 Important?
ERC-721 is important because it allows for the creation of unique digital assets on the Ethereum blockchain, expanding its use cases exponentially. They are key to the world of digital collectibles, powers up blockchain gaming, and enables the possibility of tokenizing and selling/buying unique digital or real-world assets.
How Does ERC-721 Work?
ERC-721 works by allowing for the creation of a smart contract where each individual token is tracked separately, thus attributing unique characteristics to each token. This individual tracking and attribution make each token distinctive from the others (non-fungible) and therefore each can represent a unique digital or physical asset in the real world.
