From the early days of the Ethereum cryptocurrency launch, developers have come up with the ERC-20 (Ethereum Request for Comments) standard that lays the groundwork for tokens developed on Ethereum.

As a result, tokens based on the ERC-20 standard have exploded with hundreds of virtual currencies and millions of contracts. By 2018, the almost similar standard, ERC-721, was introduced. At that time, these were the standards for the very new concept of NFT.

The truth is that there was a time when the number of smart contracts based on the ERC-721 standard reached 19,000 contracts.

Let’s learn about ERC-721 with us!

What is ERC-721?

ERC-721 is a token standard on Ethereum for non-fungible tokens (NFTs). Bitcoin is fungible because any Bitcoin can be replaced by any other Bitcoin.On the other hand, each NFT is unique and cannot be replaced by any other form. That is what makes NFTs valuable.

A token is a smart contract or piece of code on Ethereum. ERC721 is created by writing code in smart contracts according to a common standard in a language like Solidity.

With the agreed standard, you can change information such as the owner, token name, token symbol, etc. You can also program more functions for your NFT.

History of the birth of ERC-721

  • September 2017–Dieter Shirley announces EIP721.
  • December 17, 2017 –CryptoKitties cause a craze that leads to Ethereum network congestion.
  • June 2018: ERC-721 was officially accepted by a large number of developers.

The difference between Non-Fungible Tokens (NFT) and Fungible Tokens (FT)

A Fungible Token (FT) can be understood as each token being the same, interchangeable, and divisible. For example, fiat currencies like dollars are fungible: A $1 bill in New York City is worth the same as a $1 bill in Miami. A fungible token can also be a cryptocurrency like Bitcoin: 1 BTC is worth 1 BTC, no matter where it is issued.

An NFT (Non-fungible token) is a type of digital asset that uses blockchain technology (blockchain)-similar to Bitcoin-to create a unique chain of code that represents something and cannot be replaced. These strings of codes are often used to identify digital versions of works of art, songs, or internet phenomena.

We often see NFT used to create unique digital items. These items can be real-life products, in-game items, works of art,…

Another application of NFT is real-world asset encryption. These NFTs can represent fractions of real-world assets, which are then stored and traded as tokens on the blockchain.

Some notable ERC-721 token applications in blockchain 

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club (BAYC) has always been a name that attracts the attention of the cryptocurrency market, not only because of its high prices to “crazy” but also because the big names in the entertainment industry can be too. show interest in these NFTs. It is an NFT collectible built on Ethereum. It is a set of animated apes. Yuga Labs is the team behind Bored Ape Yacht Club.

Ethereum Name Service

The Ethereum Name Service is a distributed domain name system built on the Ethereum platform. Simply understanding each Ethereum wallet address will be a long, complex, and difficult task for the vast majority of users. To make things easier to transfer money back and forth, the Ethereum Name Service solution was born. At this point, complex wallet addresses will be replaced with domains ending in.ETH. The Ethereum Name Service helps users generate ERC-721 NFTs. These NFTs represent the tenant’s.eth domain.

Digital art

Digital art is understood as a work of art that uses digital technology as an integral part of the process of composing or presenting. With the arrival of ERC721, artists can profit from the work. Specifically, they will use ERC721 to encrypt their work and publish it on the Ethereum Blockchain.

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