The ERC721 token standard

There are many positive developments in the world of crypto currencies despite the price fluctuation. Ethereum is moving to the ERC721 token standard, which is considered a significant improvement.

The ERC721 token standard

Most Ethereum users are now familiar with the topic of ERC20 tokens. It is the form of the digital asset, which is e.g. found on most ICOs. One of the main aspects of the ERC721 is that it can be used for non-fungible or cryptographically unique and non-replaceable tokens (NFTs). A good example is the CryptoKitties project, which recently set up digital assets on the Ethereum Blockchain. Although these were issued as ERC20 tokens, technically it was not the best solution. Since these assets are all unique in their own way, their fungibility is completely different than with normal ICO tokens.

A game changer

The bigger question is how people will respond to the ERC721 standard. This is not the first time that a new token standard has been introduced. Both the ERC725 and the ERC735 are also interesting, but more for other purposes. These two standards focus mainly on verifying your own references or identities. ERC721 is a completely different creature in this regard and a significant advance over an ERC20.

It also depends on how many non-fungible assets are created in the future. It is still a niche market within the cryptocurrencies and the blockchain. But that does not mean there will not be more projects like Cryptokitties. The ERC721 standard is still at an early stage of development and has not yet been officially finalized.

With the introduction of the blockchain in the game industry interesting application possibilities could emerge. The tokenization of items and assets in the game itself may lead to wider acceptance of ERC721. It also continues to demonstrate the potential of the blockchain for the gaming industry.

image by shutterstock