Standards of NFTs

Standards of NFTs

Ethereum is the most adopted blockchain network for NFTs. However, did you know the meaning of ERC, instead?. Each of this blockchains has a unique feature that makes the developer or owner of the NFT marketplace choose it. In the same way, each blockchain has a token or coin belonging to it that it uses for the transactions.

In this article, will be explained and let you dive into the meaning of this code or standards!. let's learn together! Ethereum has its ERC (Ethereum Request for comment). Basically, ERC can be used for Currencies “Shares” or Collectibles. Each of these blockchains has a special feature that makes the developer or owner of the NFT marketplace to choose it.

Blockchain offers the collectible market much more security and digital scarcity. Especially to ensure assets authenticity and eliminate forging. NFTs are popular in the digital art and gaming ecosystem. But besides gaming, NFTs can be used to digitize anything considered to have value.

What is ERC-721 standards?

ERC-721 is used for non-fungible tokens, that are unique. This was the first non-fungible token standard to be created. Some NFTs are worth millions of dollars. Unlike ERC-20 tokens, the smart contracts using ERC-721 standards allow us to create a unique token ID and call some data related to the details of the NFT. Each token can be thought of as a collectible based on the uniqueness and rarity of its properties.

What are the other code or so-called standards for NFT?

Well, they have ERC1155 and ERC-998. Two notable non-fungible token standards on Ethereum, which aren't as commonly used as the ERC-721 are the ERC-998 and the ERC-1155 standards. The ERC-998 token can then be valued and traded. Since the ERC-998 token can own a unique set of digital assets. It can be thought of as a portfolio of assets or as a holding company for a diverse group of assets.

Well, what about ERC-1155?

ERC-1155 tokens allow for users to register fungible (ERC-20) and non-fungible (ERC-)721 tokens using the same address and smart contract. This token standard was developed with games in mind where fungible tokens could represent a transactional currency in a game and the non-fungible items could represent in-game collectibles and in-game exchangeable assets.

While Ethereum was the first blockchain platform with NFT capabilities it wasn't specifically built for NFTs. There will be more NFT standards to choose from in the near future. NFTs with power the next generation of games and media applications. They may also find utility in digital identity, healthcare and insurance applications.

Whichever standards you choose, you need to understand the complexity and the transactions fees of each alternative.

Reference: https://youtu.be/aHRGnuPt_Jk