What is an ERC-1155?
ERC-1155 is a standard for creating multi-token smart contracts on the Ethereum blockchain. It is an improvement over the existing ERC-20 and ERC-721 token standards and enables the creation of a single smart contract that can manage multiple token types, including both fungible and non-fungible tokens.
Fungible tokens are tokens that are interchangeable and have the same value, like a currency or a commodity. Non-fungible tokens are unique and have a different value, like a collectible or a digital asset. ERC-1155 enables the creation of both types of tokens within a single smart contract, which reduces the amount of code and resources required to manage multiple token types.
The ERC-1155 standard also introduces the concept of "meta-transactions" which allow users to interact with the smart contract without having to pay gas fees, which are fees paid to the Ethereum network to perform transactions. This makes the process of using the tokens more user-friendly and accessible to a wider audience.
One of the benefits of ERC-1155 is its increased efficiency compared to previous token standards. By having multiple token types within a single contract, the amount of gas fees required to manage the tokens is reduced, leading to a more cost-effective and scalable solution.
Simplified Example
ERC-1155 is like a big toy box with different types of toys inside. Imagine you have a toy box that contains different types of toys, like cars, dolls, and action figures. Each type of toy is unique and has a different value.
Now, instead of keeping each type of toy in a separate box, you can put all the toys into one big toy box. This big toy box is like the ERC-1155 smart contract on the Ethereum blockchain.
Just like how you can keep different types of toys in one big toy box, the ERC-1155 smart contract can keep different types of tokens, including both fungible tokens (like cars that are all the same) and non-fungible tokens (like dolls that are unique). This makes it easier to manage all the different types of tokens, just like how it's easier to manage all the different types of toys in one big toy box.
So, ERC-1155 is like a big toy box that can contain different types of toys and tokens, making it easier to manage and keep track of everything.
History of the Term "ERC-1155"
Before the introduction of ERC-1155, the prevailing approach involved creating separate smart contracts for each item in a game or virtual environment, resulting in redundancy and inefficiency, especially in games with numerous items. In 2017, Witek Radomski, a developer at Enjin, identified this inefficiency and collaborated with Enjin colleagues and the wider Ethereum community to explore solutions. The collective effort led to the development of a new token standard capable of representing multiple items within a single smart contract. In June 2018, Radomski formalized the proposal as Ethereum Improvement Proposal (EIP) 1155, titled "Multi-Token Standard." This EIP outlined the specifications and features of ERC-1155, which supports both fungible and non-fungible tokens within a unified contract. After community discussions and feedback, the EIP was officially adopted, establishing "ERC-1155" as the standard term for multi-token contracts on the Ethereum blockchain.
Examples
Enjin Coin: Enjin Coin is a popular ERC-1155 token used for virtual goods and gaming items. It allows game developers to create and manage digital assets, including both fungible and non-fungible tokens, within a single smart contract.
Axie Infinity: Axie Infinity is a blockchain-based game that uses ERC-1155 tokens to represent unique creatures called Axies. Players can buy, sell, and trade Axies on the Ethereum blockchain, and the use of ERC-1155 enables the efficient management of both fungible and non-fungible tokens within a single smart contract.
The Sandbox: The Sandbox is a popular blockchain-based game that uses ERC-1155 tokens to represent virtual lands and other in-game assets. The use of ERC-1155 enables the efficient management of multiple token types within a single smart contract, making it easier for players to trade and manage their virtual assets.