What is NFT Token Standard?

NFTs are non-fungible tokens that everyone should know about. Because with the speed of NFTs, they cover all aspects of human life. What is a token, what is the standard token of NFTs, which blockchains are NFTs and, what kind of token do they have, how is their development? We will answer all these questions in this article. Our series of articles teach NFT tokens from zero to hero in simple language, so stay tuned.

What is a token?

In blockchain technology, a cryptocurrency unit is called a token. Token means sign. The word token is used in different fields. For example, in a casino, we get tokens for paying money so that we can play in the casino, or to join a group by buying tokens, we can become a group member and receive special services. Also, there was a concept of tokens in computers, but this word has found a new and developed concept in blockchain technology, which, thanks to NFTs, we are all familiar with it today.

NFT token development platform

NFT tokens are unique and non-fungible digital assets created as digital contracts. Today’s NFT market includes artworks, games, music, video, etc. Products that are valuable and profitable with the smart contract and tokenization and the identity of their ownership can be tracked at any moment. This is one of the advantages of NFTs. But we have to tell you that NFTs, with all their benefits and advantages, unfortunately also have disadvantages. Are you aware of the disadvantages of NFTs?

The high demand for NFTs has attracted investors, gamers, and artists to this market. This has led to the creation of NFT tokens with different standards, such as BEP-721, TRC-721, ERC-721, and ERC-1155. In the following, we explain some of these standards in more detail. But first, let’s clarify what is meant by the standard, or what is the ERC-20 standard that is being talked about everywhere.

What is the ERC-20 standard?

When cryptocurrencies were created, anyone who wanted to have a blockchain-based project had to build a new blockchain, but when the wheel was invented, why make it from scratch?! So now, using Ethereum and the ERC-20 standard, anyone can create tokens without building a new blockchain.

ERC stands for Ethereum Request for Comment, and the number 20 is its exclusive number, and it is a set of rules that must be implemented on a token to create a token on the Ethereum platform. Tokens implemented with ERC-20 rules are stored and transferred on all digital wallets. The ERC-20 rules and regulations help you create a smart contract on the Ethereum blockchain and create your own token.

Various NFT Token Standards

Because of the interest and popularity of NFT, they have grown a lot. NFTs have been developed based on the Ethereum blockchain network with the help of smart contracts. The Ethereum NFT standard is called ERC-721, but with the expansion of NFTs, other blockchains were also created to produce and develop NFTs. Like the Binance Smart Chain, which has the BEP-721 standard. So ERC-721 was the first NFT token standard that created a map of unique addresses to reveal the owner’s identity.

Also, the ERC-1155 standard was created on the Ethereum platform for the NFT world to display assets in batches and be transferable. In this way, the user doesn’t need to select the token address every time to buy several types of assets from one type of NFT. For example, in a game, many assets can be selected by displaying the ID, reducing the number of smart contracts, and increasing the speed of buying and selling. The ERC-1155 standard is a mixture of ERC-20 and ERC-721 standards used to store fungible and non-fungible tokens in one contract.

The Tron blockchain is also created with the TRC-721 standard for buying and selling NFT tokens. The development of NFT with this standard is simple and cost-effective.

The Polygon blockchain, which initially started with the name of Matic, is one of the networks based on the Ethereum blockchain platform. This network was designed to solve the problems of scaling and building compatible networks with Ethereum. Polygon is fully compatible with the Ethereum network infrastructure. Due to the high transaction speed and low cost, it can be said that Polygon is a type of Ethereum network, but much faster and cheaper.

For this reason, many NFTs and projects have been launched on the Polygon platform. Like the Bored Hamster NFT project, which is based on Polygon.

NFTs or non-fungible tokens can be used for unique digital assets. They give acceptance to assets. Also, one NFT differs from another NFT because each has its characteristics. NFTs can only be bought and sold on the NFT marketplaces due to their irreplaceability.

Conclusion

This article taught us what a token is and what standards and platforms NFTs are created with. Today, you can easily tokenize any digital image, artwork, etc., in the top NFT marketplaces and get ready for buying and selling and exponential profits in the NFT market. But before that, it is necessary to raise your understanding and awareness of the NFT market like any other investment to succeed in the digital world. Thank you for being with us on this path.