ERC-721:Understanding the NFT Token Standard for Ethereum

ERC-721 is an Ethereum token standard for non-fungible tokens developed by William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs. It is a cornerstone of the ecosystem, supporting NFTs valued at billions of dollars.

ERC-721:Understanding the NFT Token Standard for Ethereum
ERC-721:Understanding the NFT Token Standard for Ethereum

Blockchains are taking the current world by storm, and their usage is predicted to continue showing bullish momentum. Before the ERC-721 token standard, most tokens represented on the blockchains served as monetary value. Still, nowadays, it has become easier to generate unique tokens that could be tied to any digital content, such as artwork, music, and footwear.

In other words, the ERC-721 standard is a set of guidelines that streamlines apps running on the blockchains in a more structured way. This way makes it easier to implement it on any platform as they ensure interoperability with a broad range of applications, including exchanges, dapps, and wallets.

NFTs, or non-fungible tokens, are digital assets that can be shown as one-of-a-kind. They may be used to represent both physical and abstract objects.ERC-721 is an Ethereum token standard for non-fungible tokens (NFTs). Fungible refers to anything that can be swapped out for another. Bitcoin is fungible since any Bitcoin may be swapped out for another. On the other hand, each NFT is one-of-a-kind. One NFT cannot be used in place of another.

What makes ERC-721 NFTs so unique?

The key feature of ERC-721 tokens is that they are all one-of-a-kind. When an ERC-721 token is produced, there is only one of that kind of token in existence. On Ethereum, a token is merely a smart contract or a piece of code. ERC-721 tokens are produced by writing code in a smart contract programming language such as Solidity that follows the same fundamental template or base code.

Following the basic template, you may choose unique features about the token you're generating, such as the owner, the token's name, symbols, etc. You can add more functionality to your NFT, but the true fun is in seeing how it interacts with other smart contracts.

How can you get ERC-721 NFTs?

On Ethereum, there exists a plethora of ERC-721 NFTs; at the time of writing, Etherscan shows over 72,000 token contracts. They range from well-known NFT collections like the Bored Ape Yacht Club to obscure individual NFTs developed by crypto enthusiasts.

OpenSea, Raible, and SuperRare are some markets where Ethereum NFTs may be exchanged. You'll need an Ethereum wallet to hold your NFT, either a software wallet like MetaMask or a hardware wallet like Trezor.

ERC-721 tokens were originally intended to be used as digital collectibles, but they've recently emerged in decentralized applications (dapps) like games to represent virtual objects. There are games like Decentraland and Gods Unchained among them. The metaverse, a permanent virtual environment in which individuals interact as avatars, is generally predicted to make substantial use of NFTs as it grows in popularity.

 New token standards have emerged. As a result, many of which are based on ERC-721. Other NFT token standards, such as ERC-875, ERC-1155, and ERC-998, have also developed on Ethereum with varying popularity, each with its own set of capabilities. ERC-721 is still going strong, helping to tokenize everything that's one-of-a-kind. This might include everything from a person's birth certificate to real estate, art, and rare video game items. The most intriguing potential will be to see how ERC-721 tokens may be utilized in smart contracts to build whole new business models and transaction methods.