Crypto Terms: Letter E

What is ERC-1155?

ERC-1155 - an Ethereum-based token standard that offers higher security and tradeability compared to the older ERC standards.
2 minutes

Let's find out ERC-1155 meaning, definition in crypto, what is ERC-1155, and all other detailed facts.

ERC-1155 are tokens based on the Ethereum blockchain. They are considered to be secure, hack-proof, and tradeable. ERC-1155 can be utilized to create new fungible tokens that can serve as currencies on different platforms.

ERC-1155 tokens are optimized to improve the efficiency and security of crypto transactions. The cost of token transfer is reduced thanks to the option to bundle the transactions.

ERC-1155 token is an upgraded version of the older Ethereum token standards, such as the fungible ERC-20 or the non-fungible ERC-721. Both of the older standards are widely used in the Ethereum ecosystem. However, they come with certain limitations and issues that have been patched with the release of newer token standards.

The ERC-20 and ERC-721 tokens provide completely different functionalities and cannot be used interchangeably. Attempts to do so may lead to network disruptions or failure. The ERC-1155 token was developed as a single contract that implements features of both – ERC-20 and ERC-721 token standards.

ERC-1155 provides more efficient token management and expands past some of the limitations of the older standards. ERC-1155 tokens can execute a deterministic smart contract function by sending a token to a specific address.

If a token is sent to a decentralized exchange (DEX) address, another token can immediately return to the sender’s address. Using ERC-1155, tokens can be easily wrapped, converted, or escrowed without any direct contact with the smart contract. The users can simply send the token to a specific address to initiate the process.

ERC-1155 stands out for its secure token transfer capabilities. These tokens contain a function used to verify the completion of the transaction. If the transaction is not fulfilled, the tokens are returned back to the sender’s wallet.

If a user makes a mistake when setting up a transaction or mixes up the wallet addresses, leading to the tokens being sent to the wrong recipient, the ERC-1155 standard declares the transfer void and the tokens can be recovered. This functionality is not possible with the older ERC standards. The mechanics of ERC-1155 also help prevent double-spending attacks.

In general, ERC-1155 offers wider functionality and more flexibility than the ERC-20 and ERC-721 standards. It is expected that the ERC-1155 tokens will become increasingly popular in the Ethereum ecosystem, possibly dethroning the older, non-interchangeable tokens.