What is the Ethereum Request for Comments-1155 (ERC-1155)?
Ethereum Request for Comments-1155 (ERC-1155) is an ERC token standard that is used to create fungible and non-fungible tokens on the Ethereum network by deploying a single smart contract interface. The standard sets the rules of what a token can do, so the ERC–1155 defines the properties of certain types of tokens.
The ERC-1155 standard features:
- A combination of functions from the ERC-20 and ERC-721 standards.
- Batch transfers: a single contract can execute multiple assets in a single transaction. This minimizes transaction costs and improves transaction security and efficiency.
- Support for fungible, non-fungible, as well as semi-fungible tokens.
- The safe transfer of tokens: if the tokens are delivered to the wrong address, they can be reclaimed easily by the issuer.
- Fewer transactions, as there is no need to approve token contracts separately.
- Lower gas fees forminting tokens, because there’s no need to use individual smart contracts.
What is the Difference Between ERC-721, ERC-20, and ERC-1155?
ERC-1155 is a hybrid token standard that combines both ERC-20 and ERC-721 token standards.
ERC-20 is a fungible token standard. Fungible tokens are identical. Take Bitcoin as an example – one unit of Bitcoin is similar to another Bitcoin and can be interchanged with each other. Stablecoins and other tokens like the BAT (Basic Attention Token) and UNI (Uniswap) are based on the ERC-20 standard.
On the other hand, the ERC-721 token standard is used to create non–fungible tokens like NFTs. Non-fungible tokens are one-of-a-kind tokens that cannot be interchanged with other tokens. Each ERC-721 token has a unique ID, and it cannot be divided into smaller parts. This standard is commonly used for creating digital collectibles, art, and gaming assets.
Both ERC-20 and ERC-721 use individual smart contracts to create new tokens. They do not support semi-fungible tokens (SFTs) which are a combination of fungible and non-fungible tokens.
In contrast, ERC-1155 tokens are designed to be more efficient and cost-effective by allowing multiple types of tokens to be managed within a single smart contract. It allows Ethereum developers to create fungible, non-fungible, as well as semi-fungible tokens.