ERC-721 vs ERC-1155: A Comprehensive Comparison of Two Major NFT Standards
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ERC-721 vs ERC-1155: A Comprehensive Comparison of Two Major NFT Standards

Tags
Common Questions
NFT
Date
Feb 22, 2023

Introduction

With the rise of non-fungible tokens (NFTs), many creators are looking to deploy their unique digital assets on the Ethereum blockchain. Two popular NFT standards on Ethereum are ERC-721 and ERC-1155. While both standards are used for NFTs, they differ in their underlying technology and the features they offer. In this article, we will compare ERC-721 and ERC-1155, discussing their motivations, the number of deployed NFTs, generated revenue, and examples of successful projects.
 

The motivation behind choosing ERC-721 for NFT deployment

ERC-721 is a standard for creating unique, non-fungible tokens on the Ethereum blockchain. The motivation behind choosing ERC-721 for NFT deployment is its ability to create one-of-a-kind digital assets that cannot be duplicated or replicated. This is especially useful for digital art, music, and collectibles, as it creates scarcity and exclusivity, making the asset more valuable. Additionally, ERC-721 allows for a unique token ID, which can be used to verify the authenticity and ownership of the asset.
 

The motivation behind choosing ERC-1155 for NFT deployment

ERC-1155 is a standard for creating semi-fungible tokens on the Ethereum blockchain. The motivation behind choosing ERC-1155 for NFT deployment is its ability to create both unique and interchangeable tokens. This is useful for creating a series of digital assets that share common traits, but with individual variations. This makes it ideal for gaming and sports collectibles, where players can collect different versions of the same asset. Additionally, ERC-1155 allows for more efficient storage and lower gas fees, making it cheaper and more accessible to users.
 

The number of deployed NFTs on ERC-721 vs ERC-1155

As of September 2021, the number of NFTs deployed on ERC-721 is significantly higher than on ERC-1155. According to NonFungible.com, ERC-721 has over 11 million NFTs deployed, while ERC-1155 has just over 2 million. This is likely due to the fact that ERC-721 has been around longer, and is better suited for digital art and collectibles, which make up the majority of NFTs on the market.
 

Revenue generated by ERC-1155 NFTs

While ERC-1155 has fewer NFTs deployed, it has generated a significant amount of revenue. According to DappRadar, as of September 2021, the top three ERC-1155 NFT marketplaces have generated a combined total of over $2 billion in sales. This is likely due to the popularity of gaming and sports collectibles, which are well-suited to the features offered by ERC-1155.
 

Revenue generated by ERC-721 NFTs

As of September 2021, ERC-721 NFTs have generated over $10 billion in sales, making it the most popular NFT standard in terms of revenue generated. This is due to the popularity of digital art and collectibles, which have sold for millions of dollars on various marketplaces. However, it is important to note that while ERC-721 has generated more revenue, it also has a larger number of NFTs deployed, which means that the average price per NFT is lower than that of ERC-1155.
 

Generating passive income with ERC-721 or ERC-1155 NFTs

Both ERC-721 and ERC-1155 NFTs can be used to generate passive income through various means. One way to generate passive income is through royalties, where the creator earns a percentage of every subsequent sale of the NFT. Additionally, both standards allow for the creation of in-game assets that can be traded or used within a game, allowing players to earn passive income through the sale or use of their assets. Some NFT marketplaces also offer staking, where users can lock up their NFTs to earn interest or other rewards. These features make NFTs a viable option for those looking to generate passive income.
 

Examples of successful ERC-721 NFT projects

Some notable examples of successful ERC-721 NFT projects include CryptoKitties, which was one of the first NFT projects to gain widespread popularity, selling for millions of dollars. Other examples include Rarible, which allows users to create, buy and sell digital art, and OpenSea, which is a marketplace for various types of NFTs.
 

Examples of successful ERC-1155 NFT projects

Some notable examples of successful ERC-1155 NFT projects include Enjin, which is a blockchain-based gaming platform that allows users to create, trade, and use in-game assets. Another example is Sorare, which is a fantasy soccer game that uses ERC-1155 tokens to represent player cards, which can be traded and used within the game.
 

The average price of ERC-1155 and ERC-721 NFTs

As of September 2021, the average price of ERC-1155 NFTs is around $1,000, with some rare collectibles selling for much higher prices. The average price of ERC-721 NFTs is around $800, with some digital art pieces selling for millions of dollars. It is important to note that these averages can vary widely, depending on the rarity, popularity, and uniqueness of the NFT.
 

Conclusion

In conclusion, both ERC-721 and ERC-1155 are popular standards for creating NFTs on the Ethereum blockchain. While ERC-721 is better suited for digital art and collectibles, ERC-1155 is more suitable for gaming and sports collectibles. Both standards have generated significant revenue and can be used to generate passive income. The choice between the two standards ultimately depends on the use case and the goals of the creator.