Blockchain: An introduction to ERC721 and token standards
ERC721 is a special type of token that is used to create unique, non-fungible tokens (NFTs). It is a standard that was created on the Ethereum blockchain, which is a special kind of digital ledger that keeps track of all the transactions that happen with Ethereum-based tokens.
One of the great things about ERC721 is that it is an open standard, which means that anyone can use it to create their own NFTs. This has led to a large and diverse ecosystem of NFTs, with everything from digital art to in-game items being created as ERC721 tokens.
Digital Artwork
Another key features of ERC721 is that each token that is created is unique and has its own special identifier. This means that you can't trade one token for another, because they are all different. This is different from other types of tokens, like ERC20, where each token is the same and can be traded for any other token.
While it might seem strange to buy and sell digital art, NFTs have opened up a new market for the art world. By using ERC721 tokens, artists can create unique and one-of-a-kind pieces of digital art that can be verified on the blockchain. This brings up a philosophical question about the nature of art and ownership. In the past, art collectors would buy a physical piece of artwork, which they would then own and be able to display.
With digital art and NFTs However, the collector may not actually own the artwork, but rather the proof of ownership in the form of an NFT. This has led to debates about the value of digital art and whether it can truly be owned in the same way as physical art. Nonetheless, the popularity of NFTs has shown that there is a growing market for digital art and that collectors are willing to pay significant sums for a unique and verified piece of artwork.
Other standards
There are also other standard variations of ERC721 that have been created to add new features or functionality to the basic ERC721 standard. Here are some examples:
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ERC1155: This standard allows for the creation of both fungible and non-fungible tokens. This means that you can create a set of tokens that are all the same (like ERC20 tokens), but also include some tokens that are unique (like ERC721 tokens).
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ERC998: This standard allows for the creation of "composable" NFTs, which means that NFTs can be combined or broken down into smaller parts. This could be used, for example, to create a game where players can collect different pieces of equipment and then combine them to create a more powerful item.
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ERC1400: This standard is designed for "security tokens," which are tokens that represent ownership in a real-world asset, like a piece of property or a company. It includes additional features for compliance with securities regulations.
Conclusion
ERC721 is a standard for creating unique, non-fungible tokens on the Ethereum blockchain. It is often used for digital art, but can be used for other types of assets as well. While it is a great standard, there are many other standards that have been created to add new features or functionality to NFTs. By combining different standards, developers can create even more powerful and unique tokens that can represent a wide range of assets and values.