If you are familiar with ERC-20 and ERC-721, you might have heard of ERC-1155. But what is an ERC-1155 token? ERC-1155 is a token standard that enables the efficient transfer of fungible and non-fungible tokens in a single transaction.
What is an ERC-1155 token?
ERC1155 is a novel token standard designed to draw from previous standards to create fungibility-agnostic and efficient token contracts. ERC1155 draws inspiration from ERC20, ERC721, and ERC777.
ERC-1155 is a token standard for creating semi-fungible tokens, which means that you can launch both fungible and non-fungible tokens in a single smart contract. In order for NFTs and the wider token ecosystem to grow and expand to other applications, it is clear that the community needs to create a new standard. If gaming platforms and other types of token-based dApps (decentralized applications) want to incorporate NFTs, they must find a new way to minimize transaction volumes and contract inefficiencies. Thus, ERC -1155 was born.
How does ERC-1155 work?
The original motivation behind ERC-1155 was to solve the challenges faced by blockchain game developers and players. There are many examples of ERC-1155 being used outside of games. However, games are a good reference use case to understand how ERC-1155 works.
Using ERC1155, it is now possible to transfer different types of tokens in one instance, saving transaction costs. Additionally, transactions can be created in the form of atomic swaps and custody of multiple tokens on top of the ERC1155 standard. The system no longer needs to approve token contracts individually, as ERC1155 has eliminated this redundant step.
So now you know what is an ERC-1155 and how ERC-1155 works. ERC 1155 also serves as the basis for new improvements to simplify the Ethereum ecosystem by increasing efficiency and value. ERC 1155 has significant advantages and is simply a revolutionary intervention.
