ERC-721 is a free, open standard that describes how to build non-fungible or unique tokens on the Ethereum blockchain. While most tokens are fungible (interchangeable), ERC-721 tokens are unique and can represent ownership over an asset or item.
The term "ERC" stands for Ethereum Request for Comment, and "721" is the unique proposal ID number. This standard was proposed by Dieter Shirley in 2018 and has been implemented by a multitude of projects.
The uniqueness of ERC-721 tokens has led to their use in representing digital ownership of unique items or assets, most notably in the realm of digital art and collectibles. This has given rise to the concept of Non-Fungible Tokens (NFTs), which have gained significant attention in recent years.
ERC-721 tokens have the potential to revolutionize digital ownership, intellectual property rights, and even real-world asset ownership. They can represent ownership of a unique piece of art, a specific real estate property, or even a particular seat at a concert.
While ERC-721 and ERC-20 are both standards for tokens on the Ethereum blockchain, they serve different purposes. ERC-20 tokens are fungible, meaning each token is identical to every other token; they are interchangeable like coins in your pocket.
On the other hand, ERC-721 tokens are non-fungible, meaning each token is unique and not interchangeable with any other token. It's like owning a ticket to a concert - your ticket is unique to you and gives you access to a specific seat at a specific event.
One of the most famous examples of an ERC-721 token is CryptoKitties, a blockchain-based virtual game that allows players to adopt, raise, and trade virtual cats. Each CryptoKitty is a unique ERC-721 token (NFT) owned by the player, which can be bought, sold, or traded on the Ethereum blockchain.
Another notable example is Decentraland, a virtual reality platform powered by the Ethereum blockchain. In Decentraland, you can purchase land, which is represented as an ERC-721 token, giving you ownership over that piece of virtual real estate.
The future of ERC-721 tokens is closely tied to the future of NFTs, which have already begun to disrupt the art world and could potentially impact a variety of industries, including real estate, gaming, and intellectual property rights. As more use cases for unique digital ownership emerge, the significance of ERC-721 is likely to grow.
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