ERC-1155 and ERC-721: The Battle of Two Token Standards on the Blockchain

Why Choose Between ERC-721 and ERC-1155?

When entering the world of NFTs and tokens on the blockchain, developers often face an important decision: use ERC-721 or ERC-1155? This question is not simple, as each standard has its own advantages and disadvantages. To understand better, we need to explore the nature of each standard and when to apply them.

ERC-721: The First Recognized NFT Standard

What is ERC-721?

ERC-721 was introduced as the first standardization in Solidity language aimed at building and trading (non-fungible tokens). Each ERC-721 token is unique and cannot be exchanged on a one-to-one basis with any other token, even if they share the same name or type.

Designed more complex than ERC-20 with multiple optional extension contracts, ERC-721 is a standard interface built on EVM-compatible (Ethereum Virtual Machine) blockchains. It provides a clear set of rules to simplify interaction with NFTs.

Features of ERC-721:

• Each token is unique and non-fungible
• Requires deploying a separate contract for each NFT or NFT group
• Offers high customization and better security
• Higher gas fees and longer processing times due to complex transactions

ERC-1155: The Next-Generation Token Standard

What is ERC-1155?

Developed by Enjin, ERC-1155 is considered a versatile standard supporting (fungible), (non-fungible), and (semi-fungible) tokens within a single contract. This standard inherits the best features of ERC-20, ERC-721, and ERC-777, creating a comprehensive solution.

Main differences of ERC-1155:

• Allows deploying multiple token types within one smart contract
• Supports transferring multiple token types in a single transaction
• Significantly reduces gas fees (up to 90%) compared to ERC-721
• Eliminates the need for separate token approval contracts

Detailed Comparison: ERC-721 vs ERC-1155

Advantages of ERC-1155 over ERC-721

1. Cost Savings

ERC-721 is known for high gas fees, but ERC-1155 addresses this by allowing a single contract to manage multiple tokens, reducing costs by 90%. This is especially useful for projects issuing mass tokens.

2. Support for Multiple Token Types

Unlike ERC-20 and ERC-721, which require separate contracts for each token type, ERC-1155 enables developers to deploy unlimited varieties of (NFT, fungible, and semi-fungible) tokens within one contract.

3. Higher Security

All transactions in ERC-1155 are encrypted and include automatic verification functions. If a transaction fails, tokens are returned to the wallet. This prevents tokens from being sent to wrong addresses and ensures safe transfer processes.

4. Reduced Workload

Entering metadata details for each NFT via ERC-721 is complex and time-consuming. ERC-1155 allows issuers to input less data thanks to support for dynamic metadata, significantly saving release time.

5. Optimized for DeFi

ERC-1155 comes with built-in useful code snippets for decentralized finance protocols (DEX), enabling more efficient interaction with this standard.

When to Use ERC-721?

ERC-721 remains the best choice for unique NFTs, high-value digital assets, or projects requiring high customization. It offers high security and flexibility for individual tokens.

When to Use ERC-1155?

ERC-1155 is ideal for projects issuing mass tokens, combining NFTs and interchangeable tokens, or aiming to reduce transaction costs. This standard is especially suitable for gaming applications, metaverse, or complex token ecosystems.

Future: Both Standards Will Coexist

Although ERC-1155 is rapidly gaining popularity due to lower gas fees and performance benefits, ERC-721 will not be forgotten. These standards will develop together, each serving different needs:

• ERC-721 continues to be the preferred choice for individual NFTs and tokens requiring high uniqueness
• ERC-1155 will become the norm for mass token issuance and DeFi applications

While ERC-1155 offers better cost efficiency, its drawback is less reliable data storage compared to ERC-721, so the final choice depends on the specific needs of the project.

Reference: Medium