Ethereum is a popular blockchain platform known for its token standards that create remarkable changes in the crypto world. But, as a cryptoprenuer, did you ever think why there are continuous updates in the token standards? If yes, you may be aware of the token ERC1155.
ERC1155 is a semi-fungible token standard belonging to the Ethereum family. Its smart contract can manage any number of Fungible and Non-Fungible tokens. Before the arrival of this token, the user has to pay multiple fees to transfer the value of ERC20 and ERC721 together. This is a known issue in the gaming and digital art collectible industries. And is now resolved with this token’s multi-token compatibility.
Speaking further, this token keeps the characteristics of both fungible and nonfungible tokens and supports the batch transfer. This batch transfer lowers the volume of transactions processed in the blockchain and improves blockchain performance. This advantage shifts many investors’ interest to create ERC1155 tokens.
Furthermore, due to its various use cases and the hype surrounding NFTs, this token is frequently compared to the ERC721 token. As a startup, you should understand how this ERC1155 token differs from the ERC721 token.
Comparison Between ERC721 Vs ERC1155
The ERC721 and ERC1155 tokens are gradually gaining significance as the future of cryptocurrency. This is the reason why ERC721 is only considered as a non-fungible token to date. Now the arrival of the ERC1155 token sets the necessity of deriving the difference between them. Here are some points to note,
- ERC721 token only allows the creation of non-fungible tokens. On the other hand, the ERC1155 standard is a more flexible and cost-effective solution for creating both fungible and non-fungible tokens.
- ERC1155 can support an infinite number of tokens within a single smart contract; while ERC721 requires provisioning a new smart contract for each token type. This is another advantage of ERC1155 over ERC721. For this reason, ERC1155 becomes a more scalable token.
- Additionally, ERC1155 allows batch transfers of tokens which can significantly reduce both transaction costs and time spent. On the other hand, ERC721 token development requires a separate transaction for each token you transfer. Therefore, the transfer process is time-consuming and expensive.
As a result of the comparison, it is confirmed that the create ERC1155 token standard has the required properties for future NFTs. However, from a business perspective, there is more to learn about this token.
So now let’s move on to ….
How Is ERC1155 Better Than Other Tokens?
For starting a business, knowing the significance is not enough to conclude. There are certain factors a startup should check with any token before finalizing them for business. In this regard, let us check how this token performs well considering the following factors.
Efficient Use Of Blockchain Resources
ERC1155 token standard allows multiple creations of both fungible and non-fungible tokens within a single contract. So the blockchain does not need multiple smart contracts deployment. This results in the efficient use of blockchain resources and lower gas fees.
The atomic swap feature in this token allows trading any number of tokens between two persons automatically with the help of smart contracts. The smart contract locks the token of both parties. Once the transaction is successful, the tokens are automatically release to a specific address.
With this semi fungible token, the total supply can be divide into fractional ownership. The smart contract will manage the ownership of the token as programmed. However, this is not possible in the NFTs.
This semi-fungible token supports multiple tokens within a single smart contract. Moreover, it allows the transfer of multiple tokens in a single batch. This results in operational cost reduction.
This semi fungible token can be operable with both fungible and non-fungible tokens. We can trade this token with other popular tokens like ERC20, ERC721, and more. So the token holders can easily tokenize or trade these tokens.
The above-mentioned factors clearly show create ERC1155 token helps you expand your business in terms of interoperability and efficiency. And as a startup, if your intention is tokenization, this token’s fractionality and interoperability features can make it possible. So ERC1155 has better scope than other tokens.
Along with that, knowing the characteristics of this semi fungible token can help you figure out possible business opportunities. So let us discuss the characteristics…
Characteristics Of ERC1155 Token
The remarkable characteristics of this token are,
- Batch transfer : An option for transferring multiple tokens in a single batch.
- Batch balance check : It is easy to get the balance of available tokens.
- Multi-token support : The single smart contract can support all fungible and non-fungible tokens.
- Safe token transfer : ‘Safe Transfer’ function ensures transaction validity check.
- Flexibility : Can manage any number of fungible and Non-fungible tokens.
These are the characteristics of ERC1155 tokens. So if your business goal is to create ERC1155 token that is compatible with all token-related operations, then ERC1155 token creation can match your business requirements. To check this, let us see the various use cases of this token in detail.
Use Cases Of ERC1155 Token
Gaming: The crypto gaming platform has a lot of weapons, shields, and tools that are usually represented by individual tokens. But if the gamer needs all these under one package, this token will be useful because of its batch transfer capability.
Tickets and vouchers: Create ERC1155 token can represent event tickets, travel vouchers, gift cards, and more purposes. Further, the token offers a secure and efficient way of managing them.
Collectibles: Collectibles mean, Art, Video, Music, and Sports collectibles that are represented by these tokens. ERC1155 token creation has all its particulars like the artist’s name, year of launch, and more.
Digital Assets: This token can represent a wider range of digital assets in the Ethereum blockchain like stocks, intellectual property shares, ownership of assets, and more.
Identity verification and Data Management: This token can be used to verify the digital signature, giving access to the control and managing personal data in the data storage.
So from the use cases, you may understand the possible business opportunities when you create ERC1155 tokens. It is a cost-effective solution for creating and managing a wide variety of tokens and assets on the Ethereum blockchain. It provides more flexibility, security, reliability, and most importantly compatibility with crypto businesses. You only need to spend a minimal amount on token development; however, you can generate more income as an outcome.
Further, with the ability to create multiple tokens within a single contract, ERC1155 token creation can help startups with easy tokenization. As a result, your business can grow faster and will reach a larger user base. So as a startup, are you ready to create ERC1155 tokens with professional guidance? Then approach ZAB Technologies, A prominent Crypto Token Development company.
Why Choose ZAB Technologies For ERC1155 Token Development?
ZAB Technologies is a recognized Crypto Token Development Company and one of the pioneers in this field. Our team of experts analyzes the goal of your business and finalizes the requirements accordingly. With vast experience in token development, we create ERC1155 tokens as feature-rich tokens to meet all your business objectives. This results in the performance of the token and take your business stand ahead of the global population. So engage with us to build your dream business into realization.
Talk to our experts and create your own ERC1155 token standard now!