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Ethereum request for comment (ERC) token standards are documents for token development, distribution, and deployment. They are crucial for smart contract development to enable basic functionalities and compatibilities with existing decentralized exchanges. There are multiple ERC tokens, but ERC-1155 has emerged as a multi-token standard for Ethereum blockchain application development services.
This article entails the ERC-1155 token standard, features, benefits, and use cases.
ERC-1155 Token Standard
ERC-1155 is an Ethereum token standard for smart contracts that handles multiple token types. It integrates the functionalities of ERC-20 and ERC-721. This standard enables the transfer of fungible, semi-fungible, and non-fungible tokens in a single transaction.
ERC-1155 enables smart contract development that represents and manages numerous token types. The standard improves previous standard functionalities and makes them more efficient. Additionally, it can rectify implementation flaws in the ERC-721 and ERC-20 standards.
ERC-1155 token enables storing various items in a single smart contract. Users can send any number of things to multiple recipients in a single transaction. This functionality is specifically beneficial in gaming where players can send fungible assets (coins) and non-fungible assets (swords) in a single transaction.
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The Need for ERC-1155 Token Standard
ERC-1155 token standard combines the benefits of ERC-20 and ERC-721 in a single token standard by enabling the transaction of various types of tokens. Previously, the most common token standards were ERC-20 for fungible tokens and ERC-721 for non-fungible tokens.
You cannot wrap these two standards in the same smart contract. It resulted in the need for multiple transactions when transferring different types of tokens, making the process inefficient and costly.
However, ERC-1155 has solved this issue by integrating both token standards. This new standard allows for the seamless transfer of fungible and non-fungible tokens in a single transaction, making the process much more efficient.
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Functions and Features of ERC-1155 Token Standard
We have listed the following features and functions of the ERC-1155 token standard:
Batch Transfer
The batch transfer enables users to share various ERC-1155 tokens in a single transaction. So, the standard support an infinite number of tokens, saving network congestion and reducing gas costs. Comparatively, ERC-20 and ERC-721 standards require a new smart contract for every new token type.
Batch Balance
With batch balance, users can retrieve various asset balances of assets in just one request. They get the number of different tokens their accounts have.
Token Support
ERC-1155 token standard support fungible, non-fungible, and semi-fungible tokens. So, users can share all these types of tokens in a single transaction.
Batch Approval
This functionality facilitates collective approval of token contracts, removing the requirement to approve individual token contracts separately. It implies signing fewer transactions, saving time, and streamlining the user experience.
Safe Transfer Rules
ERC-1155 has a safe transfer functionality that enables token reclamation when send to the wrong address. This function is unavailable in ERC-20 and ERC-721 token standards.
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ERC-1155 Token Standard Use Cases
ERC-1155 token standard is a flexible and versatile standard that one can apply to various cases with fungible, non-fungible, and semi-fungible token requirements. Below we have enlisted its use cases:
Reward and Loyalty Programs
ERC-1155 standard enables the development of loyalty programs and rewards, offering different token types (points, badges, or exclusive digital items). Companies can efficiently handle these tokens using a single smart contract. It will simplify the redemption process.
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Tokenized Real-world Assets
Individuals can represent their tokenized real-world assets using ERC-1155. These tokenized assets may be fungible or non-fungible tokens, including real estate, intellectual property, or precious metals.
Users can manage all these assets in a single smart contract thanks to ERC-1155. It will facilitate efficient transfers and trades.
Collectibles and Digital Arts
Artists or creators can employ ERC-1155 to develop and manage any type of digital art, such as images, videos, or audio files. They can also use this standard for unique collectibles like limited-edition art. The standard gives the advantages of flexibility and efficiency to users.
Decentralized Autonomous Organizations (DAOs)
The functioning of Decentralized Autonomous Organizations (DAOs) needs fungible, semi-fungible, and non-fungible tokens utilization. ERC-1155 is beneficial for on-chain DAOs. The standard provides the management of various token types in a single contract.
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Conclusion
ERC-1155 token standard is a functional, versatile, and powerful tool for efficient management and token transfer in a single contract. It brings innovation and adoption in multiple industries.
Businesses can leverage its applications in gaming, decentralized finance (DeFi), virtual worlds, and more. This standard will remain in use for its flexibility to launch fungible and non-fungible tokens in a single smart contract.
If you wish to use ERC-1155 token standard to develop new tokens, then Oodles can help you. Our skilled blockchain developers can assist you in creating your desired token. Contact us today to discuss your project needs.
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