ERC-721 is a Non-Fungible Token (NFT) standard built on the Ethereum blockchain. It defines an API for creating, managing, and transferring unique tokens within smart contracts. These tokens can represent various digital or physical assets, such as artwork, collectibles, or real estate, and can be traded on the cryptocurrency market.
ERC-721 tokens are called NFTs (Non-Fungible Tokens), implying that each token has a unique, non-replaceable value. This is a fundamental distinction from the ERC-20 tokens, which are fungible and represent identical values.
Each NFT is defined by a single ERC-721 token with a unique identifier, distinguishing it from the others. Through this, the NFT gains its uniqueness.
The ERC-721 enables interoperability between NFTs, ensuring that various applications — such as wallets, brokers, or auction platforms — can work with any NFT created with this standard.
The ERC-721 standard operates by defining rules for creating and managing non-fungible tokens. Each NFT contains information to verify its authenticity and prevent duplication.
The ERC-721 standard employs smart contracts to define token creation, storage, and transfer rules. This enables the development of platforms and applications that facilitate easy and secure management of non-fungible tokens.
NFTs have gained popularity in recent years, and ERC-721 is one of the most critical standards that has contributed to the growth of the digital asset market. It allows for creating and exchanging unique digital assets securely and transparently.