What are ERC-20, ERC-721, ERC-1155? What is the difference?

 ERC-20, ERC-721 and ERC-1155 are the three major protocols used on the Ethereum blockchain, or the three token standards that operate in the ecosystem. Create tokens corresponding to three different modes and usage functions. At present, Ethereum is the most used and most representative blockchain in the market, so the three protocols mentioned above are also the most widely used token standards. Each token standard has specific functions, which are introduced here in the order of development of the protocol.

Due to the rapid development of blockchain and various protocols, users and developers are not satisfied with the use of a single token, which in turn promotes the evolution of the three tokens. As the first token introduced in the Ethereum blockchain, ERC20 Development company ERC-20 is still used as a homogenized token for human transactions on Ethereum. Later, the system introduced a new token standard: ERC-721, the main The emergence of these token standards, which are used to create non-fungible tokens, and ERC-1155 in 2019, which is a mixture of the former two, has further contributed to the success of Ethereum so far.

The evolution of token standards ECR-20

The token standard ERC-20 was proposed in 2015, and was finally officially installed on Ethereum in 2017. In a decentralized ecosystem, this standard token standard is widely used for a variety of purposes. Since ERC-20 itself is a set of standards for regulating blockchain behavior, it is not only accepted by most individual users, but also quite popular by some organizations or institutions. It can be said that the ether under the ERC-20 specification, It is very beneficial for ICO, crowdfunding, stablecoin establishment and other activities on Ethereum.

To put it simply, if a token is based on the ERC-20 standard, its most important feature is the “homogenization” between tokens, for example, the 10 yuan coin in your hand and the 10 yuan in my wallet The money is the same as the coin, the value of both is exactly the same, and there is no particular problem with which coin is more special.

Generally speaking, ERC-20 homogenized tokens have two characteristics, which are fungibility and divisibility:

Substitutability: It means that each cryptocurrency has the same value and the same function. There is no difference between the ethers in the hands of different users. They can be exchanged with each other at will, and can be traded at a predetermined price.
Divisibility: Unlike the fiat currency that we often use, the minimum unit when purchasing fiat currency is 1 yuan. Although cryptocurrencies use pieces or pieces as the unit, they do not need to be traded in integers. For example, when using ether to buy NFT, It can be traded with 0.08 ether, which is its divisibility.

ERC-721

Different from the former, ERC-721 aims to create non-fungible and indivisible tokens, that is, the familiar non-fungible token-NFT (Non-Fungible Token).

Irreplaceability: Each NFT has its uniqueness, it is unique and irreplaceable, and after it is also stored on the chain, it cannot be deleted at will.

Indivisible: Unless allowed by smart contracts, NFTs cannot be split into smaller shares for transactions like cryptocurrencies.
So what can be created with ERC-721?

In fact, as long as an object can have special value, it is suitable to be created with this token standard, such as artistic creation, music, or the most common personal avatar and PFP. Generally speaking, there is no way to find another value that is completely correct. etc. ERC-721 tokens.

NFT can also be regarded as the ownership of a digital creation or asset. Unlike previous works of art, NFT, as a unique digital token, creators can continue to receive income in each transaction through royalties, even if The same goes for buyers and sellers without creator involvement.

ERC-1155

ERC-1155 is a multi-token standard, the full name is Multi Token Standard. The purpose of ERC-1155 is to reproduce, package or combine one or more Token Types or NFT Collections, so that Token Types or NFT Collections have functions such as inheritance, multi-type, and encapsulation.

For example, Xiaoming wants to buy a game’s hat + clothes + pants + shoes. In the past, the game could only let Xiaoming buy one by one, one transaction per transaction. With ERC-1155, the game project party can sell Xiaoming’s whole body The set is complete, and the four NFTs can also be called to Xiao Ming at one time.

The main function of this protocol is that the capacity of the blockchain is not unlimited, so it is necessary to prevent developers from developing unlimited smart contracts. The traditional object-oriented concept reduces the number of smart contract releases and improves development efficiency. The additional effect is to increase the user experience, allowing users to have rich choices such as suits and multi-type tokens.

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