ERC-721, also known as Ethereum Request for Comments 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 (every token is the same as every other token), ERC-721 tokens are all unique.
Understanding ERC-721
The ERC-721 standard was proposed by William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs in January 2018. It was inspired by the success of CryptoKitties, a blockchain-based virtual game that allows players to purchase, collect, breed and sell various types of virtual cats. CryptoKitties was the first game built on Ethereum to gain significant popularity, and it demonstrated the potential of non-fungible tokens.
ERC-721 tokens are used to represent ownership of unique items or assets. These can be real-world assets like real estate or digital assets like virtual pets or characters in a game. Each ERC-721 token is tied to a specific asset and contains information that makes it distinct from every other token. This uniqueness and the ability to prove ownership make ERC-721 tokens particularly useful for digital collectibles and online gaming.
Impact on the Market
The introduction of ERC-721 has had a significant impact on the blockchain and cryptocurrency markets. It has opened up new possibilities for tokenization and has led to the creation of a new market for digital collectibles. According to a report by NonFungible.com, the total market capitalization of all ERC-721 tokens was over $210 million in 2020, with the top three projects being CryptoKitties, Decentraland, and Sorare.
Moreover, the ERC-721 standard has also influenced the development of other token standards. For example, ERC-1155, a more advanced token standard, allows for the creation of both fungible and non-fungible tokens within the same contract.
Trends and Future Applications
ERC-721 tokens are not just for games and collectibles. They have potential applications in various industries. For instance, they could be used in real estate to represent ownership of individual properties, in the art world to prove the authenticity of artworks, or in supply chain management to track unique items.
Furthermore, with the rise of decentralized finance (DeFi), ERC-721 tokens could also be used as collateral for loans or to represent shares in an investment fund. The possibilities are endless, and as the technology matures, we can expect to see more innovative uses for ERC-721 tokens.
ERC-721 on the MEXC Platform
On the MEXC platform, ERC-721 tokens can be traded just like any other cryptocurrency. Users can buy, sell, and hold ERC-721 tokens, and they can also participate in ICOs or other token sales that issue ERC-721 tokens. MEXC supports a wide range of ERC-721 tokens, including popular ones like CryptoKitties and Decentraland.
In conclusion, ERC-721 is a powerful and versatile standard that has significantly expanded the capabilities of the Ethereum blockchain. By enabling the creation of unique, non-fungible tokens, it has opened up new possibilities for digital ownership and has created new markets for digital collectibles and other unique assets. As the technology continues to evolve, we can expect to see even more innovative applications for ERC-721 tokens.
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