Why do P2E video games use ERC-1155 tokens?

ERC-1155 is an Ethereum token normal that mixes two others: ERC-20 and ERC-721. 

ERC-20 is used for fungible property like cryptocurrencies. It permits builders to create their very own currencies on Ethereum. For instance, the stablecoin USDC, Binance Coin (BNB), or Uniswap (UNI) are all ERC-20 tokens. You may trade these fungible tokens with one other an identical foreign money of the identical worth. In P2E video games, governance and utility tokens used for worth transfers deploy ERC-20. An instance is the SAND token used within the Sandbox recreation ecosystem. 

ERC-721 is a normal used for many non-fungible property (NFTs). It’s utilized to create distinctive property which are indivisible and might’t be exchanged equivalently, in contrast to ERC-20 tokens. Recreation property like heroes, skins, equipment, and metaverse virtual lands are represented by ERC-721 tokens. For instance, Sandbox Lands use this normal. 

Why do blockchain video games want one other normal?

It was the blockchain firm Enjin that introduced the new ERC-1155 normal. The purpose was to handle the deficiencies of ERC-20 and ERC-721, significantly within the recreation trade. 

These requirements aren’t preferrred for play-to-earn video games as a result of every asset requires its personal devoted good contract. Blockchain video games embrace a whole lot, if not 1000’s, of property. Furthermore, many gamers play the video games concurrently. Because of this, transactions grow to be too gradual and costly.

A single contract copes with a number of token sorts.

A treatment to transaction issues is to make use of a normal that may signify a number of token sorts on the identical time. This fashion, you’ll be able to wrap completely different asset sorts in a single contract. Because of this, the variety of transactions, therefore the prices, could be diminished. 

You may’t bundle ERC-20 or ERC-721 property collectively into one single contract. In different phrases, it’s essential to perform a special transaction for every asset. In a P2E recreation, for instance, you’ll be able to’t promote an NFT asset and make a fee utilizing the sport’s native foreign money inside the identical transaction. 

ERC-1155 makes it doable, eliminating the necessity for a number of transactions as a result of its good contract can signify a number of token sorts, i.e., fungible and non-fungible

Batch transferring a number of property is feasible.

It’s price emphasizing that ERC-1155 permits transactions of a number of property of the identical sort as effectively. As an asset proprietor, you’ll be able to convey a number of NFT property collectively and promote them utilizing a single contract, because of the batch switch capacity of ERC-1155. This additionally ends in diminished transaction prices. 

For instance, the Sandbox asset designers can mint any variety of copies of the identical digital asset utilizing the ERC-1155 normal. This permits them to generate collections of things they’ll promote to others. 

Semi-fungible tokens

An ERC-1155 contract can embrace any mixture of non-fungible and fungible tokens. Consequently, new token functionalities emerge, similar to semi-fungible tokens (SFT).

SFTs are like occasion tickets. Your ticket is interchangeable earlier than the occasion takes place; it’s fungible. However after the occasion, the ticket can solely function a collectible; it is non-fungible

An software is Decentraland-backed Fanz, which is an NFT occasion ticketing platform. It permits customers to create safe metaverse occasions the place tickets are represented with ERC-1155. 

Protected switch perform

ERC-1155 helps resolve one other problem that goes hand in hand with ERC-721 and ERC-20 tokens. When, for instance, you ship an ERC-721 NFT to the incorrect deal with, you’ll be able to’t take your token again. Nonetheless, with ERC-1155, you’ll be able to reclaim it because of a protected switch perform. 

The underside line

Though NFTs have loved widespread use amongst avid gamers and caught public consideration lately, they’ve a protracted method to go, significantly concerning the use cases of NFTs

By introducing completely different requirements, builders are exploring new methods to deal with the shortcomings of present approaches. On this regard, ERC-1155 capabilities as a flexible and versatile normal relevant to instances the place simultaneous use of fungible, non-fungible, and semi-fungible tokens are desired. 

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