ERC-20 and ERC-721 tokens allow for new blockchain companies to build their own token on the Ethereum blockchain. Singapore based Enjin have however been working on a new alternative protocol, which in turn will see the development of a brand new Ethereum based token, named ERC-1155.
In order to appreciate the scale of this, let’s take a look at some of the current ERC-20 and ERC-721 tokens/projects in circulation.
TRON (though this is soon to change), Binance Coin, VeChain, Bytom, Augur, Mixin, Golem, Loopring, Dentacoin, aelf (to name a few).
0x Protocol, Toshi, Axiom Zen, Decentraland, Auctionity, 0xcert Protocol (to name a few).
We must also consider tokens such as EOS and TRON TRX which use ERC-20, though this is of course due to change.
So, what is the problem with these protocols? Why have Enjin adapted ERC-1155?
According to Ethereum World News:
“The most significant inefficiency of current token standards is that they require projects to deploy a separate smart contract for each and every token type. This means every ERC-20 token and every ERC-721 collectible contains boundless amounts of repeated data. The bulk of the blockchain is comprised of the same set of repetitious code being used over and over again—millions of times over. Because of the blockchain’s immutable nature, this code will remain forever on thousands of machines, which is an enormous waste of storage space, processing power, and electricity.”
“The ERC-1155 standard is the first token standard to provide a solution to this problem. The bulk of the code for each token variation is stored in a central contract and given an identification number. From there, each new token that requires use of that code can be assigned an ID, and all of the coding is applied to the token without the need to copy and paste data.”
What will all of this mean?
It obviously gives new projects a new platform to build upon, something that could indeed prove to be advantageous, especially as the ERC-1155 format seems to promise much more in terms of efficiency. Moreover, this gives current projects a chance to possibly move over onto the new platform, simply in order to engage their users and generate a bit of media attention, that alone is often enough to help bolster the value and reputation of a blockchain project. Either way, its pretty exciting, ERC-1155 has some cool implications for the future of new and existing altcoins.
You can see more about ERC-1155 in the piece by Ethereum World News, here-