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ERC 1155 Defined: What are ERC-1155 tokens?

ERC-1155 is a digital token standard created by Enjin that can used to create both fungible (currencies) and non-fungible (digital cards, pets and in-game skins) assets on the Ethereum Network. By using the Ethereum network, ERC-1155 tokens are secure, tradable and immune to hacking. To find out more about the specifications of the ERC-1155 standard, check out EIP 1155.

ERC-1155 a new way of creating tokens that allow for more efficient trades and bundling of transactions – thus saving costs. This token standard allows for the creation of both utility tokens (such as $BNB or $BAT) and also Non-Fungible Tokens like CryptoKitties.

For more information about the creators of ERC-1155, check out our Enjin Coin Guide.

ERC-1155 includes optimizations that allow for more efficient and safer transactions. Transactions could be bundled together – thus reducing the cost of transferring tokens. ERC-1155 builds on previous work such as ERC-20 (utility tokens) and ERC-721 (rare one-time collectibles).

Summary

  • ERC-1155 tokens were developed by Enjin.
  • It is a way of creating both fungible (currencies) and non-fungible (digital cards, pets and in-game skins) assets.
  • They can be used to represent assets or items across Enjin’s ecosystem of blockchain games. So one asset can be used in multiple games.
Most Expensive ERC-1155 Assets in Existence. These are traded on Enjin’s marketplace

What are Fungible vs Non-Fungible vs Semi-Fungible Tokens?

Fungible tokens: ERC-1155 can be used for the creation of fungible tokens- utility coins that act as currency for various platforms. The advantage of ERC-1155 is that it allows the creation of many different tokens under the same contract (with ERC-20, a new contract needs to be deployed for every token). ERC-1155 is more suitable for multi-token economics, for example if a project has one token is designated as a security token (STO) and another Utility token.

Non-Fungible Tokens (NFTs): NFTs can take the from of digital collectible cats (such as crypto kitties) or video game weapons. What sets NFTs apart is that each token is unique.

Every Cryptokitty is unique – they cannot be exchange with each other (ie non-fungible)

For example, every cryptokitty is unique with different stripes and patterns. This means that cryptokitties are not “fungible”, and cannot be replaced with one another (imagine if someone swapped your pet cat with another – you’ll notice the difference immediately). When it comes to cryptocurrencies, this property of being unique and not swap-able is called “non-fungible“.

Non-Fungible Tokens Explained

With ERC-1155, NFTs hold unique metadata which can be modified with time. For example, this metadata can hold information about the lineage of a cryptokitty.

For more information about the creators of ERC-1155, check out our Enjin Coin Guide.

An Amazon Gift card could be a “semi-fungible” token

Semi-fungible tokens: This a new type of token that could “seat a concert” or a “$50 dollar Walmart coupon”. In the case of a Walmart coupon, each token is fungible (same as each other) until the token is redeemed or used in store. Once a coupon is redeemed, it no longer holds value and hence shouldn’t be traded as a normal token. In this example, the coupon is “fungible” until it is redeemed (“non-fungible”), hence the name semi-fungible token.

Superior Design

The superior design of ERC-1155 Crypto Items allows for a swap of any amount of tokens in only 2 simple steps (source: EnjinCoin Blog)

The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur. 
Disclosure: Authors are invested in cryptocurrency projects and have cryptocurrency holdings - including those covered on this website. 

Michael
I’m Michael Gu, Creator of Boxmining. I’ve been involved in the digital asset and Blockchain space since 2012. Something I immediately noticed was that accurate information is hard to come by in this space. More often than not, we find extremely biased information that exploits the complexity of blockchain to obscure facts. Having been around before bitcoin or blockchain was even “cool” meant that I had to do a lot of discovery myself, and along the way, I had many successes, but also made mistakes. I started Boxmining in 2017 mainly as a passion project, to educate people on digital assets and share my experiences. Being based in Asia, I also found a huge discrepancy between digital asset trends and knowledge gap in the West and China. So I leveraged my knowledge and positioning to bridge that information gap and let people know what is truly happening. This journey has been nothing short of exhilarating for me, starting from when I mined Bitcoin in grad school to appearing on China’s national television as an overseas expert on blockchain technology, and having the honour of interviewing leading crypto entrepreneurs, including Binance CEO Changpeng Zhao and FTX founder Sam Bankman-Fried.

2 COMMENTS

  1. Hi Michael! I saw your Youtube video and it was great, I did have a question about erc-1155 upgrade, say you make an erc-1155 token to preserve royalties and lineage on an art piece for every sale in the future, is there a limit in how many tokens you can make within that smart contract? if so, does cryptokitties create new erc-1155 tokens often? or do they use their own custom smart contract? Id like to do a series of game cards and maintain royalties. thanks!

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