ERC-1155 digital token standard was created by Enjin and offers more security in comparison to older token standards.
What Is ERC-1155?
ERC-1155 tokens are secure, tradable, and resistant to hacks. ERC-1155 can be used to create fungible tokens, which offer utility in the form of currency on various platforms.
ERC-1155 includes optimizations that make transactions more efficient and secure. Transactions could be bundled, lowering the cost of transferring tokens. ERC-1155 is an upgrade of older token standards, including ERC-20 and ERC-721.
(for fungible tokens) and ERC-721 (for non-fungible tokens, NFT
) token standards are widely used in the ecosystem. Just take a look at Etherscan to see the massive number of tokens that have been built using these standards. Both of these, however, have limitations, some of which are quite severe.
The ERC-20 and ERC-721 tokens are not interchangeable. In fact, the contracts are so dissimilar that adding functionality that connects the two would be a daunting task, with a high risk of network disruption, failure, and commission costs
. It would be much easier to program a more secure and less complex design if a single smart contract
could handle everything.
Here is when ERC-1155 was created in order to unite both worlds under a single contract, overcoming the limitations already mentioned and making their management more efficient.
The strict set of rules that a token must follow allows for an incredible feature of the ERC-1155 token standard. These tokens are the first type that is capable of executing a deterministic smart contract function simply by sending a token to an address.
Simply sending a token to a DEX exchange address could result in the exchange immediately returning another token to the sender's address. Tokens could be wrapped, converted, crafted, or escrowed without having to interact directly with the smart contract.
All a user has to do is send their token to a specific address to set off a fantastic chain of events.
The secure token transfer is one of the most promising features of the ERC-1155 token which is accomplished through a function that verifies that the transaction was completed successfully, and in case it wasn’t fulfilled, the tokens involved in the transaction are reverted back to their issuer.
This is especially useful when we make a mistake in the transcription or copying of addresses and instead send our tokens to an incorrect address
, rendering our transaction inoperable. The transfer is void in that case, and the issuer recovers the tokens, allowing it to verify the address again and retry the operation. There are also a number of rules in place to prevent double-spend attacks
When compared to ERC-20 and ERC-721
, the utility and technical superiority of ERC-1155 appears to be enormous, indicating that it will gradually take on more and more space.