Categories: Glossary

ERC-721

Understanding ERC-721 Tokens

ERC-721 is a token standard that has been specifically designed for the Ethereum blockchain. It is commonly known as non-fungible tokens (NFTs), which gained significant popularity in the later part of 2020 and the beginning of 2021.

NFTs are tokens that are unique and possess distinct characteristics, which sets them apart from other tokens. Unlike fungible assets, such as a $10 note, which can be exchanged for any other $10 note, non-fungible assets like a plane ticket or a trading card cannot be swapped on a like-for-like basis.

ERC-721 tokens bring the concept of uniqueness to the blockchain, allowing for the preservation of specific details about an asset. They enable the creation of digital representations of one-of-a-kind artworks, with ownership easily proven through blockchain records. This feature is particularly useful in combating counterfeiting.

The Ethereum community strongly believes that ERC-721 tokens have immense potential beyond the well-known collectible CryptoKitties. Other blockchains, such as Binance Smart Chain, have also introduced token standards that are similar to ERC-721.

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