Beyond Gaming – Exploring the Utility of ERC-1155 Token Standard!
Exploring the Utility of ERC-1155 Token Standard and What is an ERC Token Standard and Why We Need One?
ERC stands for ‘Ethereum Request for Comments.’ It is a technical document created by smart contract developers at Ethereum that defines a set of rules. A developer coding a new token needs to follow these rules to implement tokens for the Ethereum ecosystem. Before becoming a standard, an ERC must be revised, commented and accepted by the community.
But why define rules?
The answer to this question lies in the very fabric of the Ethereum eco-system. To perform specific functions in the ecosystem, Ethereum supports decentralized apps (Dapps). Depending on these specific functions which solve the purpose of the Dapp, it might need to produce tokens that would act as a currency or represent assets like gold or property. Now, these tokens need to be stored in wallets and traded on popular cryptocurrency exchanges. Otherwise, they won’t hold any value. These wallets, exchanges etc. also follow the rules define in the ERC documents to ensure compatibility, and support all the tokens that are based on specific ERC token standards.
Read more: What Are Dapps? The New Decentralized Future
So, it’s simple – ERC documents define standard guidelines that everyone can follow to build compatible tokens and the apps that would support them.
The Gaming ERC-1155 Token Standard – Combining the Utility of ERC-20 & ERC-721
The ERC-1155 token standard allows the creation of fungible, semi-fungible and non-fungible tokens in a single token standard. This feature gives ERC-1155 token standard an edge over the ERC-20 and ERC-721, that allow either the creation of fungible tokens (ERC-20) or non-fungible tokens (ERC-721).
Read more: ERC20 Tokens: A Comprehensive Origin Story
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