ERC-721

What Is ERC-721?

It is a non-fungible Ethereum token standard. ERC-721 tokens are distinct from ERC-20 tokens in that they are non-fungible. This implies that every token is different and, as a result, cannot be interchanged. 

Explaining the Concept of ERC-721

The acronym ERC refers to Ethereum Request for Comments. It is not a technology or platform; instead, it provides technical construction help to developers. There is a total of nine final Ethereum Requests for Comments as of December 2018. 

ERC-20, ERC-55, ERC-137, ERC-162, ERC-165, ERC-181, ERC-190, ERC-721, and ERC-1167 are all examples of ERCs. In addition, developers can create ERCs by filing an Ethereum Improvement Proposal (EIP). 

Because of ERC-20 interface limitations, William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs developed ERC-721 - The Non-Fungible Token Standard. On the 24th of January 2018, an Ethereum Improvement Proposal (EIP) was created.

An Example of the Concept of Non-fungible 

A non-fungible item is something like an airline ticket or a trading card. So, for example, even though two air tickets may appear identical, one may promise an economy fare to New Jersey. But, at the same time, the other guarantees first-class travel to Saint Lucia. They cannot be exchanged like for like.

ERC-721 tokens aim to apply this notion to the blockchain, ensuring that an asset's unique characteristics can be preserved. For example, NFTs can be utilized to offer a digital version of one-of-a-kind artwork, having ownership easily proven through blockchain records. 

This may help to reduce counterfeiting. The Ethereum community is convinced that ERC-721 might have a wide range of fascinating applications that go far beyond the collecting CryptoKitties that makes this asset class popular. To generate an ERC-721 token, the contracts should support both the ERC-721 as well as ERC-165 interfaces. Moreover, the introduction of non-fungible tokens on the blockchain enables

• physical possession (artwork, houses, and vehicles)

• Collectibles on the Internet (Cryptokitties, collectible cards, and rare pepes)

• Negative-value assets (loans)