Token Standards Supported For NFT Development
In this modern era, Blockchain is becoming a popular technology among people which is more challenging. There are many blockchain platforms available to create tokens. Among them, Ethereum earned the best name in the crypto sector. The Ethereum was first developed in 2014 which is an open-source blockchain. It is mostly used as a cryptocurrency for trading and also a blockchain platform for creating tokens. Crypto tokens are mostly used for fundraising and exchanging. There are two types of crypto tokens such as fungible tokens and Non-fungible tokens.
Fungible tokens are those whose values will be the same, it is divisible, and can also be exchanged with the same types. Non-fungible tokens are the opposite of fungible types which will not have the same value and cannot be divisible. In 2021, there are many popular crypto tokens available in the industry. But NFT is attracting everyone because of its unique features. The first NFT introduced in 2017 is “Crypto punks” which was developed on the Ethereum blockchain. Another NFT was also developed in the same year itself as “Crypto kitties” which has gone virally.
When it comes to NFT development, there are different types of NFT token standards available in the Ethereum blockchain like ERC721 and ERC1155. Not only Ethereum but even Tron and Binance smart chain also support NFT token standards. Such as TRC721 and BEP721.
If you are not aware of Non-fungible tokens and NFT token standards. Then you have come to the correct place and this article will explain in detail about it
Come let us see…
What Is A Non-Fungible Token?
Non-fungible tokens are unique tokens and they are not like other tokens so they can not be interchanged with other tokens. These tokens may be digital items like digital art, sculptures, paintings, GIFs, or whatever. There are many more NFTs that are available in the NFT marketplace. It can also be a physical property like real estate, etc.
Among those items, digital arts and games are more popular. Now a question may arise in your mind like – why non-fungible tokens are more popular than fungible tokens? Here is your answer. It is because of its indivisibility and interchangeability. Non-fungible tokens have entirely different protocols. So it provides higher safety and security because of its uniqueness. Non-fungible tokens are actually used as collectibles. They will be mostly traded on NFT marketplaces.
Nowadays, people have gone craze on digital arts and collectibles which also makes non-fungible tokens more special. non-fungible tokens developed on some existing blockchains have been adding more features. which are also being the factor for its popularity. Some features of NFT includes,
- Immutability and provable scarcity
Now there avails a huge demand for NFT. so, create your own token using the right NFT token standards to earn profits in a short span and to reach great heights.
Popular Non-Fungible Tokens In The Marketplace
There are many non-fungible tokens available in the market. But here are some of the best tokens listed below.
- Crypto kitties
- Async. art
- Axie Infinity
- FND NFT
- NFT yourself
- POW NFT
- Binance collectibles
Reasons To Create Non-Fungible Tokens?
There are some notable reasons to create an NFT. such as
As we already know, non-fungible tokens are usually created by blockchain technology. So it is completely decentralized and non-regulated. Therefore, all transactions are done transparently.
Non-fungible tokens are always controlled by the owner. Those NFTs will be protected by the owner by using its private key. Because of this private key, NFT can be transferred to any account.
Non-fungible tokens are always indivisible. For example, A coupon of $40 cannot be divisible into two $20 coupons.
NFTs are always unique because each NFT has a unique value and it cannot be interchanged.
These are the reasons for choosing NFT over fungible crypto tokens.
Use Cases Of NFT Token Standards
The most popular use cases of NFT token standards development in the blockchain industry are listed below.
NFT for Gaming
As of now, the value of the gaming industry is more than $160 billion and in 2023 it may reach up to $200 billion. The gaming industry is the most important reason for the popularity of NFT tokens to consider a good run as of 2021. Using nft, a player can trade with other players. They can improve their gaming expertise by getting more tokens. Because of these factors, the gaming industry plays a vital role in the growth of non-fungible tokens in 2021.
NFT in digital arts
Proof of ownership and authenticity of any artwork will be provided for the non-fungible tokens in digital arts. Therefore, it provides shared ownership and identity. which has the scope of increasing monetization. It will also provide essential information like previous owners of the token and the cost quoted on the token.
NFT in real estate
Here non-fungible tokens can be created using real estate and property rights. Otherwise, you can tokenize your virtual lands and can sell them on the market quickly.
NFT in sports
Here Non-fungible tokens can be used for the representation of the most entertaining and dramatic moments. You can also use pics that are in high demand. It includes tokenization of video clips and implementation of digital bids.
Popular NFT Token Standards In The Crypto Marketplace
NFTs can be created and deployed across different networks. As discussed earlier, NFTs are indivisible, interoperable, and interchangeable. Non-fungible tokens can be created using different types of NFT token standards like,
- ERC721- Ethereum blockchain
- ERC1155- Ethereum blockchain
- TRC721- Tron blockchain
- BEP721- Binance smart chain
ERC721 is one of the technical NFT token standards used for the creation of Non-fungible tokens in the Ethereum blockchain. ERC721 token standard is the very first standard developed in the Ethereum blockchain. It is used to represent Non-fungible tokens. It is the most popular NFT standard that has unique characteristics so that this token standard became highly valuable. A smart contract will be signed for trading and managing tokens in the creation of NFTs. Some of the popular non-fungible tokens created using ERC721 are Cryptokitties, Cryptoflowers, Axie, avastar, and SWAPO, and many more. Thus many startups have been interested in choosing the ERC721 token standard for the creation of NFTs.
ERC1155 is the most advanced NFT token standard. It also became the game-changer among the token standards. It is the only standard that is used for creating both fungible and non-fungible tokens. The main advantage of this token is the creation of smart contracts that supports both fungible and non-fungible tokens. So, it became more effective than ERC20 and ERC721 tokens. This token standard was created to overcome the limitations of ERC20 which sends the tokens wrongly to some other address.
In ERC721, only separate transactions can be done so it increases the overall transaction cost. To overcome all these limitations ERC1155 tokens are created. ERC1155 allows a large amount of transferring both fungible and non-fungible tokens. So, it reduces the transaction cost and the workload of the ledger. Another advantage of this token standard is issued tokens can be returned to the current holder if it is sent to the wrong address.
TRC721 is a token standard where you can create non-fungible tokens in the Tron blockchain. It is more compatible than the ERC-721 token. TRC721 is used to tokenize the collectibles. It provides risk-free deployment of TRC721 for your unique collectibles. For example, cryptoflowers is a famous game like crypto kitties which is an ERC721 token. Here you can exchange your unique cryptoflowers by using smart contracts in the Tron blockchain in an uncomplicated manner.
BEP721 is a binance smart chain token standard. BEP721 is the extension of the ERC721 token standard which is used for the creation of NFT. BEP721 tokens are compatible with Ethereum Virtual Machine(EVM). As discussed earlier, Non-fungible tokens can be created like ERC721 and TRC721.
Non-Fungible Token Development
Developing an NFT is not a tedious task. It is simple when you have enough knowledge of the NFT token standards and blockchain. As already discussed, Non-fungible tokens can be created using three prominent NFT standards like ERC721, ERC1155, TRC721, and BEP721. For creating your very own NFT, you should consider some important factors like token name, token symbol, smart contract, and the collectible You’re going to use for developing the non-fungible token. You should not commit even a single mistake in the programming part which will wholely affect the NFT development process. Secondly, you can hire a team of blockchain developers from the leading NFT development service provider which would help you to launch an NFT at a reasonable cost.
It is mostly expected that the future will be promising for non-fungible tokens and their marketplaces. The NFT market is crossing more than $300 million as of now!! Blockchain experts predict that the new crypto users will give 50% of their entry in non-fungible tokens. For starting your business in the NFT marketplace, you have to develop your own non-fungible tokens with the right NFT token standard. All you need to do is hire a well-experienced team of blockchain developers from the reputed Non-fungible token development service provider. There you’ll get the top-notch NFT development service at an affordable price and will get the perfect result.