What is ERC-721? The Ethereum NFT Token Standard

The emergence of non-fungible tokens, or NFTs, has taken technological innovation to the next level. These tokens serve as distinctive digital identifiers in the blockchain domain. Now the main question you might be wondering ‘What is ERC-721?’

ERC-721 stands as one of the prominent Ethereum Improvement Proposals (EIPs) that defines a standard for non-fungible tokens (NFTs) on the Ethereum blockchain. Unlike fungible tokens like cryptocurrencies (where each unit is equal and interchangeable), ERC-721 tokens are unique and indivisible, each possessing distinct properties and value.

This standard has been accepted by all developers. By following similar ERC standards, the code-writing process becomes easier. Moreover, it also helps to increase the level of predictability. Although the ERC-721 standard is entirely voluntary in nature, by following it, the level of compatibility can definitely improve.

The concept of ERC-721 first came into existence in the year 2018. ERC basically stands for Ethereum Request for Comments. This standard is responsible for implementing an application programming interface (API) for tokens in Smart Contracts. ERC-721 offers a diverse range of functionalities that you need to be aware of. One of the chief functionalities is that you can transfer tokens from one account to another without any issues.

A brief history of ERC-721

Although ERC-721 made its official presence in 2018, there is a history to it. In September 2017, Dieter Shirley took the very first step towards ERC-721. An Ethereum Improvement Proposal (EIP721) was introduced. The NFT Project CryptoKitties was a stepping stone in the creation of ERC-721.

By December 2017, the project had gained immense popularity, as a result of which it led to the congestion of the Ethereum network. During the same month, the launch of Opensea took place. In June 2018, ERC-721 made a big leap as it reached its final stage. Hence, a consensus was arrived at by Ethereum developers to accept ERC-721 as a standard.

Since the emergence of the ERC-721 standard, it has become an integral component of the NFT landscape. It emphasizes the safety aspect of the NFT transfer process, which is of immense value for users. You need to have a thorough insight into the standard so that you can develop unique tokens on Ethereum.

What makes ERC-721 unique?

You might be wondering what is so unique about ERC-721. Well, the answer is quite simple. Each ERC-721 token is unique in itself. Therefore, when an ERC-721 token comes into existence, it is just the only token to exist. There can be no other token that shares its features or attributes.

The ERC-721 token as a non-fungible token has given rise to the idea of unique assets on the Ethereum landscape. Because of the distinctive nature of these tokens, they are also known as deeds. When a person has possession of an ERC-721, it implies that he solely has the right to it.

The makers of ERC-721 have opted for the term NFTs instead of deeds. This is due to the fact that people may associate deeds with the property. ERC-721 tokens can be used for a diverse range of purposes which automatically expands its potential application base.

A brief history of ERC-721

What makes ERC-721 unique?

How can you possess ERC-721 tokens?

Now that you have better clarity on – What is ERC-721? You might be wondering how to get these tokens. The good news is that it is pretty simple to get a hold of them. In fact, with the pace at which technology is advancing, it was never easier to purchase and store non-fungible tokens. The concept of NFT gained popularity in 2021. Over the years, a large number of marketplaces and projects relating to NFTs have come into existence. Due to such a trend, you have a much higher opportunity to own ERC-721 tokens.

The perfect way to acquire ERC-721 tokens is through reliable NFT marketplaces. Since numerous marketplaces have come into existence, you can easily get your hands on them. However, a key thing to keep in mind is that the NFT marketplace that you ultimately choose to make the purchase transaction must be reliable. In case you are unsure about some top marketplaces, then you can surely consider Rarible or Opensea. In order to make the most of the token, you have to connect it to your Ethereum wallet. Having an ERC-721 wallet is a wise choice that you must definitely consider.

In case you have the assumption that you must be super rich to possess ERC-721 tokens, then you are mistaken. You can browse the marketplaces and choose a product that is within your price range. Hence this way, by buying the token, you will not burn a hole in your pocket. The icing on the cake is that the purchase process is quite simple.

With the click of some buttons, you will be able to purchase an ERC-721. However, there is a catch! You must have knowledge about the top ERC-721 token list. This knowledge can make your purchase process simpler. Some of the key tokens that belong to the ERC-721 token list are Ether Capsule (ECAP), PepeZuki Token (PZUKI), and The Moment3!

Main benefits of ERC-721

ERC-721 gives rise to a host of benefits for holders. Even though it has emerged in recent times, it has been revolutionizing the use of NFTs on Ethereum. Any ERC-721 tutorial is incomplete without highlighting its core benefits and advantages. Below is the list of key benefits that you can enjoy thanks to ERC-721.

Ownership

You are already aware of the uniqueness that comes with ERC-721 tokens. So, it is not a surprise that its chief benefit is the ownership of the token holders. By possessing the token in your ERC-721 wallet, you can own digital assets in a secure way. Wait, that’s not all!! In addition to this, you can even manage and transfer unique digital assets in a hassle-free manner.

Reliability in the digital realm

Regardless of the immense popularity of NFTs among people, it is a relatively new concept. Within the past few years, it has come under the limelight and become a global hit. Even today, the concept is undergoing change due to the evolving nature of technology. The distinctive attribute of ERC-721 shows that it is going to thrive in the market in the long run. The unique properties of the token will help it to sustain and create value for its holders.

Robust programmability

The ERC-721 standard is of immense value for the community of creators. It gives rise to new kinds of opportunities for them to create and integrate additional functionalities into their non-fungible tokens. For instance, they can introduce new elements such as in-game elements and utilities and royalties for diverse artists.

Interoperability

Interoperability is a key feature in the digital arena that makes it possible to exchange information. When it comes to ERC-721, it makes it possible for non-fungible tokens to engage with varying marketplaces on Ethereum. Moreover, NFTs can even interact with varying dApps and wallets, which enhances their utility within the Ethereum network. Such a feature also makes NFTs more accessible and convenient tools.

Safeguarding Intellectual Property (IP)

In the current times when theft can take place in the blink of an eye, you need to safeguard your Intellectual Property at all costs. With the help of ERC-721, you do not have to worry about the compromise of your Intellectual Property. ERC-721 tokens can come to your rescue and offer an ample level of protection in terms of Intellectual Property. By leveraging these instruments, artists, as well as online content creators, are able to prevent the theft of their original work. It can basically help you with an immutable record of your work. Moreover, you will also be in a position to keep track of their usage.

Ways of using ERC-721 non-fungible tokens

Understanding the use cases of ERC-721 NFTs is crucial to derive maximum benefits from them. Before you consider watching an in-depth ERC-721 tutorial, you must understand the different ways you can use ERC-721 NFTs.

Gaming purposes

If you are into gaming, then ERC-721 tokens are the best things that you can get your hand on. You can use these tokens in a broad range of games that rule the blockchain universe. By acquiring these tokens, you will be able to trade, sell and acquire in-game assets effortlessly. It can make your gaming experience more engaging, immersive, and enjoyable.

Virtual worlds

Today, virtual worlds are nothing less than the physical world. By being a part of the virtual world, you have a broad range of possibilities at your disposal. If you possess ERC-721 NFTs, you can purchase, sell, and trade diverse assets in open marketplaces. If you are passionate about digital assets like buildings, land parcels, etc., then you must surely consider purchasing ERC-721 tokens.

Healthcare domain

The presence of the immensely of ERC-721 NFTs can be felt in the healthcare setting. There are a handful of blockchain-based firms that are allowing patients to use ERC-721 smart contracts for packing their medical data. This data is then passed on to healthcare and medical professionals. Such an approach is a boon as it can increase the level of security and privacy for patients. Moreover, with the help of these NFT tokens, it is possible for individuals to monitor their medical information.

Event ticketing

When it comes to events such as concerts, sports games, and conferences, the use of ERC-721 tokens is instrumental. Currently, these tokens have become popular tools for creating unique tickets for events. Since each ticket has a unique token, the level of security is high. Moreover, it also simplifies the ability of users to transfer tickets among themselves.

Digital art industry

One of the main areas where ERC-721 has given rise to high value is digital art. The digital art setting has undergone a transformational evolution thanks to ERC-721 NFTs. It has made it possible for digital artists to utilize unique tokens for monetizing their hard work. There is a broad range of platforms that they can use for creating as well as selling their artwork.

NFT Banking

The massive demand for ERC-721 NFTs has shown that it has high potential as an investment asset. In fact, it is being treated as an investment asset in the digital setting. By investing in ERC-721 tokens, users are able to generate value from them over time. The tokens open up new opportunities for users to invest in a smart and intelligent manner.

In the decentralized finance work, the tokens have already been put to use. These NFTs have made it possible to create unique types of financial instruments that were not possible in former times. It is possible to create tokenized real estate or bonds. Similarly, insurance policies can also be created with the help of these tokens.

Although the use is in the nascent stage in the practical finance world, it has given rise to new possibilities. By leveraging ERC-721, the degree of flexibility and innovation in the banking and finance world can get a major boost. The emergence of ERC-721 has been bringing about a radical change across various industries and sectors.

In summary, ERC-721 standardizes the creation and handling of non-fungible tokens, enabling developers and users to establish ownership, exchange unique assets, and build applications that leverage the uniqueness and scarcity of these tokens within the Ethereum ecosystem. Its functionality has revolutionized the way we perceive and trade digital assets, opening doors to new possibilities in digital ownership and asset representation.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.