All of the crypto space depends on public access blockchains. While the Bitcoin blockchain was revolutionary, it remains rudimentary in terms of modernizing. It doesn’t support smart contracts, nor is it developer-friendly. That is why the Ethereum network remains the king of smart-contract-based modern blockchains. Ethereum developers community have put their heart and soul into building a diversified multi-utility blockchain. In the Ethereum Token creation, there are many token standards available in the crypto market. Among them, ERC721 token development is a great benefit for startups who are looking to enter the crypto market.
ERC721 token is a technical standard for smart contracts that create non-fungible tokens. In January 2018, four developers Nastassia Sachs, Dieter Shirley, William Entriken, and Jacob Evans, proposed ERC721 (Ethereum Request for Comment 721). It has since then become one of the staples for NFTs.
Let’s take a look at ERC721 token development, shall we?
What is ERC721 Token Development?
ERC721 token development involves creating unique, non-fungible tokens on the Ethereum blockchain, each with distinct properties and ownership, commonly used for digital collectibles and assets that require individual identification and ownership tracking. NFTs are something we’ve all heard about by now. But what is it exactly? Non-fungible tokens, that’s what it means. But what is non-fungibility? To understand that, we need to know what fungibility means. For example, imagine that there is a 100-dollar bill; we can exchange it for two $50 bills, five $20 bills, or even ten $10 bills. There is no value loss in that kind of currency exchange. And that easy exchangeability of value is called fungibility. Paper denominations are fungible. After all, we can exchange one note for another, equating to its value.
Non-fungibility is the opposite of exchangeability. Imagine an exchange in value that is not equal or cannot equate via fragmentation. For example, imagine the deed of a piece of land that’s worth $100K. And you wish to exchange your land for someone else’s, who has two pieces of land worth $50K each. Even though the value of the land can equate, you cannot exchange it. Why? Because years from now, the value of the land may change drastically, but not equally. One land may be worth more than the other. It’s not an equal-value exchange. And that is the core idea behind non-fungibility.
How can you translate this idea into digital assets like cryptocurrencies? And that is where ERC721 token development comes in. It creates an avenue for NFTs to exist on the ETH blockchain.
Benefits Of Creating ERC721 Token
In the ever-evolving world of blockchain technology, the creation of ERC721 tokens has paved the way for unique and irreplaceable digital assets. Creating ERC721 token is more beneficial for startups in the NFT world. Here is the list of some benefits,
1. Authenticity and Ownership
For businesses dealing with digital assets, proving the authenticity and ownership of their products has always been a challenge. ERC721 tokens address this issue by providing a secure and transparent platform for creating and managing unique digital assets.
2. Increased Interoperability
ERC721 tokens enhance interoperability across different platforms and marketplaces. These tokens are built on the Ethereum blockchain, making them easily tradable on various decentralized exchanges, marketplaces, and gaming platforms.
3. Collectibles and NFTs
With the rise of non-fungible tokens (NFTs), businesses have embraced ERC721 tokens to create unique and collectible digital assets. From sports memorabilia and digital artwork to virtual trading cards and virtual pets, the possibilities are endless.
4. Marketing and Loyalty Programs
Create ERC721 tokens can revolutionize your marketing and loyalty programs. By rewarding customers with exclusive tokens, businesses can incentivize purchases, enhance customer engagement, and foster brand loyalty. ERC721 tokens provide a unique way to connect with customers on a deeper level and create a sense of community around your brand.
5. Gamification and Enhanced User Experience
In the gaming industry, creating ERC721 tokens has brought a new dimension to the in-game economy and player experiences. By integrating these tokens into games, businesses can offer players real ownership over their virtual assets, creating a market for buying, selling, and trading scarce and unique items.
Seeing these benefits, Create ERC721 Tokens are definitely beneficial for businesses and can unlock new revenue streams, attract a wider audience, and stay ahead in this blockchain-powered world.
While, speaking about the benefits of the ERC721 Token you will need to know about the advantages of the ERC-721 Token standard for both the creators and buyers.
For Creators
The ERC-721 standard offers a host of benefits to creators, enhancing their role in the NFT ecosystem. This new standard emphasizes increased responsibility on the part of creators, which is pivotal in shaping the preferences of potential buyers. With ERC-721, creators gain a newfound level of autonomy and control over their NFT projects. They can tailor various aspects of their NFTs, including setting the redemption period and incorporating other unique features. This empowerment allows creators to fine-tune their NFTs to align with their vision and objectives, providing a more personalized and distinct experience to their audience.
For Buyers
For buyers and crypto collectors, the introduction of the ERC-721 standard marks a significant milestone. It heralds a substantial improvement in terms of protection against potential scams. In essence, ERC-721 functions as an insurance policy for buyers, safeguarding their investments and assets. This level of security and trust is invaluable in an environment where NFTs have gained immense popularity but have also faced their fair share of challenges. With ERC-721, buyers can approach the NFT marketplace with increased confidence, knowing that their acquisitions are backed by a robust and reliable standard that prioritizes their interests and safety.
Also Read: ERC20 Token Development – A Comprehensive Guide For Startups
Contents of the ERC721 Token
ERC-721 token has many functions coded within it. There are methods and events in the code. So essentially, it provides a framework for the NFT smart contract to execute automatically in the right conditions. And this is a part of ERC721 token development.
- Name: To specify the name of the token.
- Symbol: To specify the crypto symbol of the token.
- Balance Of: This function shows the balance of a token owner’s account. This is necessary for audits and verification from a third party.
- Owner Of: This function represents the uniqueness of the NFTs and is hence necessary to find the owner address of the token.
- Transfer From: This function executes the transfer of the token from a specified address.
- Safe Transfer Form: This function transfers the token ID from ‘from’ to ‘to’ after checking the contract recipients first. (To prevent tokens from being locked permanently in a null address.)
- Approve: This function allows users to withdraw the specified crypto token from the authorized account.
- Transfer: Transfer is an event, not a function. The event happens when the transfer is successful.
- Approval: Approval is also an event. This is a record of an approved event.
- Approval For All: This event authorizes the smart contract to move tokens from a user’s cryptocurrency wallet at a later date.
Also Read: ERC1400 Token Development – To Create ETH’s Security Token
Features Of ERC721 Tokens
Even if this is just a rudimentary staple for all ERC721 contracts, there are unique cases where more functions are needed. Let me list the most used additional features and functions and events during ERC721 token development.
- Mintable: Authorized accounts can increase the supply of the tokens.
- Mintable (Auto Increment IDs): Newly minted NFT tokens will be automatically assigned an incremental ID for on-chain ease.
- Burnable: This function is for token holders so that they can destroy their tokens. (Mostly for record-keeping purposes.)
- Pausable: This function is for emergency response, so authorized accounts can pause the transfer in the case of illicit action.
- Votes: DAOs run via online governance from the community. This function in ERC20 token development is for keeping track of individual units for voting in on-chain management.
- Enumerable: This function allows an on-chain tally of tokens or those owned by an account.
- URI Storage: This allows updating token URIs for individual token IDs.
All these complicated crypto transactions are only possible because of ERC721 token development. As the crypto ecosystem grows, there will be even more upgrades and sophisticated transfer systems. As a startup, you may think about how to create a feature-rich ERC721 token. No worries! Let us see…
How To Create ERC721 Token Efficiently?
The creation of ERC721 tokens has revolutionized the way businesses interact with digital assets and engage with their customers. If you are very interested in token creation and are familiar with the token development process, you can create tokens yourself. However, when doing the token generation yourself, you may encounter technical or difficult problems to solve. When you contact a Reputed Token Development Service Provider like Coinsclone, We will guide you to make a token on Ethereum with customizations according to your business needs and requirements.
Why Choose Coinsclone For ERC721 Token Development?
We are a software company that specializes in creating crypto token and blockchain development. And we offer cost-effective blockchain-based software solutions. We have significant experience creating smart contracts for the ETH network and building flawless smart contracts. Coinsclone is the best Ethereum Token Development Services providing company in the crypto industry. Our team has an extensive track record in developing robust and secure blockchain-based platforms. We have a deep understanding of the underlying technologies and protocols that power cryptocurrencies. Our team of experts will help you to create ERC721 tokens and crypto wallets for your business in an efficient way.