tagawa.hogai88
2 months ago  Karma: 10
Why was ERC721x needed and how does ERC721x compare to ERC20?

Why was ERC721x needed and how does ERC721x compare to ERC20?
Thanks for your​ answer!

en
ethereum
ERC20
erc721x
tagawa.hogai88
2 months ago  Karma: 10
Why was ERC721x needed and how does ERC721x compare to ERC20?

Why was ERC721x needed and how does ERC721x compare to ERC20?
Thanks for your​ answer!

en
ethereum
ERC20
erc721x

ONE ANSWER
oto_mazal
2 months ago Karma: 100

To understand why ERC721 was needed, you first have to be aware of the differences between ERC20, ERC721, and ERC1178 token contracts:
- ERC20: all tokens are of one class. This type of token is not well suited for non-fungible assets.
- ERC721: a class is defined for each individual token, based on its token id. It is suitable for non-fungible assets but the gas costs of creating tokens with classes are pretty high. Also, the implementation is complex.
- ERC1178: multiple classes can be defined but it lacks support for non-fungible assets

So, before ERC721x was developed, no token was able to provide out of the box support for both multiple classes and non-fungible assets. As a result, batch transfers of NFT tokens were expensive.

How does ERC721x solve this issue? It simply adds support for non-fungible tokens to ERC1178, and wraps it with an ERC721 compatibility layer which also makes the token backward compatible with existing wallets and marketplaces.

To understand why ERC721 was needed, you first have to be aware of the differences between ERC20, ERC721, and ERC1178 token contracts:
- ERC20: all tokens are of one class. This type of token is not well suited for non-fungible assets.
- ERC721: a class is defined for each individual token, based on its token id. It is suitable for non-fungible assets but the gas costs of creating tokens with classes are pretty high. Also, the implementation is complex.
- ERC1178: multiple classes can be defined but it lacks support for non-fungible assets

So, before ERC721x was developed, no token was able to provide out of the box support for both multiple classes and non-fungible assets. As a result, batch transfers of NFT tokens were expensive.

How does ERC721x solve this issue? It simply adds support for non-fungible tokens to ERC1178, and wraps it with an ERC721 compatibility layer which also makes the token backward compatible with existing wallets and marketplaces.

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