NFTs have become a viral buzz in the Web3 community. Creators now use them to create more opportunities to solve problems and generate funds. However, deploying many of these ideas is impossible if no foundational tokens standard can regulate these tokens. Hence, the ERC-1155.
Whether you are a newbie to decentralized software development or NFT artistry, it is essential to understand the fundamentals of the ERC-1155 and what it can offer. People who use Web3 innovations need to stay up-to-date because it is easy to understand how these tokens work if you know how they work.
What is ERC-1155?
ERC-1155 is a standard that contains codes for developers. The codes are the building blocks in which fungible, semi-fungible, and non-fungible assets are formed in crypto ecosystems. They are also responsible for the attachment of the tokens to contracts.
This Ethereum standard is a hybrid form of the ERC-20 and ERC-721 and provides solutions to their loopholes.
About The ERC-1155
Enjin Coin’s co-creator, Witek Radomski, alongside some developers, created the project on the Ethereum ecosystem in June 2018. It allows semi-fungible, non-fungible, and fungible to be assigned to one contract. Before it was developed, activities that demanded the integration of fungible and non-fungible valuables could only be executed with dissimilar Smart contracts. Developers could not use a crypto contract for more than one NFT collection.
It caused copy bytecode and limited some things that could be done on the Ethereum network. Therefore, the hybrid protocol was put in place to fix this problem. Unlike the native NFT standard, this hybrid protocol allows numerous non-Fungible token collections to be introduced to a crypto contract.
This feature has introduced ease and efficiency in crypto contract development and operation. It has lessened the efforts needed to include records of new activities on the blockchain. Hence, the hybrid protocol reduces gas prices and allows tokens to be redistributed between wallets in bulk.
What you should know about Fungible, Non-Fungible, and semi-Fungible tokens
Fungible tokens act like money and can be used the same way you use fiat currency. So, fungible tokens are not unique; you can trade one Token for another of the same kind. It means the value of a fungible coin or Token is the same as that of a dollar.
Non-Fungible tokens
Non-Fungible Tokens on the other hand are tokens that have their properties and cannot be exchanged with other tokens. Each token signifies a unique, separate, and different asset, value, or property. Some underlying characteristics of Non-Fungible tokens are;
- They can neither be removed nor destroyed.
- It is impossible to change the content contained in it after being stored.
- There are recorded on the blockchain. Thus, anyone can verify its authenticity and ownership from any part of the world.
Each fraction of the NFT can be sold.
Semi-Fungible tokens
These are new kinds of tokens that combine different features of previous token standards. The thing that makes these special types of tokens “semi-fungible” is that once they are retrieved, they lose their dollar amount.
How ERC-1155 works
The hybrid standard works with a technology that lets as many tokens as possible work on a single Smart contract. It is important to note that its balance of function differs from other token standards. So, compared to the ERC721, it can request balances for all wallet token IDs, i.e., how many pieces of every token are in a wallet.
This standard is a plus for crypto users and creators. ERC-1155 is highly applicable in decentralized games that reside on blockchains. These games often work with coins (fungibles) and collectible items (non-fungibles). Due to innovations, players will want their in-game collectibles to be exchanged for currency.
Hence, its hybridized system of token operation makes it an access bridge between the in-game rewards and expendable currencies. The perk is that all these in-game pieces can be retrieved as currencies or vice versa through only one contract. Implementing NFTs can easily take place through minting. The ERC-1155’s bridging ability has created benefits like gas price savings and reduced the complexities of tokens. It has also lessened the cost of launching tokens. The ERC-1155 program operates on two other functions that aid its performance:
- The balanceOfBatch
- The safeBatchTransferForm
The above-listed functions curtail the complexities and gas costs associated with querying several token balances. They are also effective when initiating an infinite number of token transactions.
What The Crypto Community Can Gain From ERC-1155
As a participant in the crypto space, these are the benefits you can receive from ERC-1155:
- Swift and seamless multi-token transactions on every Smart contract.
- Reduced gas fees on token-related activities.
- Inter-standard token transactions on every Smart contract.
- Design of tokens that can be fungible and non-fungible at any time.
- Transaction security and self-verifications.
How To Get An ERC-1155 Wallet
The ERC-1155 program has similar wallet operations to other token protocols on Ethereum’s ecosystem. However, not all wallet providers have adopted it.
You can get an ERC-1155 address on the Enjin application. The app is the primarily approved software for such tokens because its designers are the initiators of the ERC-1155 idea. Trust Wallet also has excellent compatibility with the protocol.
Once you install the Enjin app, you will be prompted to create a password for the wallet and select as many tokens and coins as you want on your display screen. Once done, you must back up the wallet.
The Enjin wallet has three basic functionalities:
- Wallet creation
- Wallet importation
- Wallet watching
The wallet allows you to see the available ERC-1155 tokens and items. Every currency has a “receive funds” button that show the address attached to it.
Trust Wallet’s address acquisition process is similar to that of the Enjin wallet. To import an existing wallet, go to “Settings” at the bottom of the screen and click on “Wallets.” There, you can import your wallet. To check your collectibles, click on the “NFTs” icon on the home interface.
Frequently Asked Questions
Where Can I Get An ERC-1155 Wallet Address?
The Enjin wallet can use to obtain an ERC-1155 address. They are available on the Android and Apple application stores.
Is ERC-1155 better than ERC-20 and ERC-721?
Although ERC-20 and ERC-721 are efficient protocols for creating fungible and non-fungible valuables, respectively, the ERC-1155 has more capabilities. It combines their operation systems with added possibilities like multiple token releasing and cross-standard single-contract compatibility.
Can I Use Trust Wallet To Store My ERC-1155 Tokens?
Yes, you can keep your assets in Trust Wallet because works effectively with the ERC-1155 system.
Difference Between ERC-1155 and ERC-721
The difference between ERC-1155 and ERC-721 is that ERC-1155 allows various tokens to reside on a contract, while the other is limited to one token per contract. Also, ERC-1155 reduces transaction times and charges.
Conclusion
ERC-1155 is regarded as the new frontier for token designs because of its unmatched advantages. It allows multiple assets from similar and different standards to interact and work on the same contract.
Semi-fungibility is one of the primary innovations of ERC-1155. The protocol is designed such that developers can build tokens that can switch their fungibility statuses. It allows more than one user to collaborate on various projects within the same crypto contract.
Although this standard is still fresh in the blockchain space, it will become the new craze in a few years.
