Ethereum is home to various token standards that offer significant quality of life improvements. While most users know ERC-20 and ERC-721, it is equally crucial to look further. There are many uses for ERC-1155, as we will explain below.
Uncovering ERC-1155’s Purpose
ERC-1155 is a standard for tokens on the Ethereum blockchain. It was proposed by Enjin Coin in 2017 and allowed for the creation of tokens that can represent both physical and virtual assets. ERC-1155 tokens can represent anything from game items to loyalty points and can be traded or exchanged like any other cryptocurrency.
The primary benefits of ERC-1155 include:
Allows for the creation of fungible and non-fungible tokens: ERC-1155 allows for both fungible (interchangeable) and non-fungible (unique) tokens to be created on the Ethereum blockchain. This flexibility is not possible with other token standards, such as ERC-20.
Increased security: ERC-1155 tokens are stored in a smart contract rather than in a centralized server, providing increased security and decentralization.
Reduced transaction costs: With ERC-1155, a single transaction can create or transfer multiple tokens. That approach reduces gas fees and makes creating or trading large numbers of tokens more economical.
Improved functionality: ERC-1155 tokens can have different functions depending on their use. For example, they can be used as currency, loyalty points, or game items. This flexibility makes them more versatile than other token standards.
Five Successful Projects Building On ERC-1155
The five most successful projects using ERC-1155 are Enjin, WAX, GameCredits, Kyber Network, and Bancor.
Enjin is a gaming platform allowing game developers to tokenize their in-game items using the ERC-1155 standard easily. It will enable players to trade their items with each other in a decentralized way and also provides developers with a new way to monetize their games.
WAX is a decentralized exchange that allows users to trade virtual assets such as in-game items and cryptocurrency tokens. The platform makes use of the ERC-1155 standard to tokenize these assets, which makes it possible to trade them in a trustless and censorship-resistant manner.
GameCredits is a gaming currency that one can use to purchase in-game items and services. The currency is based on the ERC-1155 standard, which enables it to be used for various purposes within the gaming industry.
Kyber Network is a decentralized exchange that allows users to trade Ethereum-based tokens. The platform makes use of the ERC-1155 standard to tokenize these assets, which makes it possible to trade them in a trustless and censorship-resistant manner.
Bancor is a protocol that allows users to convert between different Ethereum-based tokens. The protocol uses the ERC-1155 standard to tokenize these assets, making it possible to convert them trustless and censorship-resistantly.