Crypto Terms:
Letter E
What is ERC-721?
Meaning:
ERC-721 -
a token standard for non-fungible tokens based on Ethereum.
Let's find out ERC-721 meaning, definition in crypto, what is ERC-721, and all other detailed facts.
ERC-721 is different from ERC-20 in the sense that ERC-721 tokens are non-fungible. NFTs, or non-fungible tokens, are tokens that have different features setting them apart from one another.
For example, a $20 banknote is fungible. This is the case because you can give one of these banknotes to someone, and there is no need for you to get the same one back, because they are all the same. A non-fungible example might be a concert ticket. Even though the two tickets appear to be identical, the places they provide might be completely different. As a result, they cannot be switched.
In the Ethereum community, there is a strong belief that ERC-721 might have a variety of intriguing use cases that go far beyond collecting CryptoKitties, which made this asset class popular.
A number of competing blockchains, including Binance Smart Chain, have also established token specifications that are comparable to ERC-721. These tokens aid in bringing the idea to the blockchain, making sure that sensitive information about the asset can be immortalized.
Furthermore, NFTs can also be used to provide a digital version of one-of-a-kind masterpieces. Ownership of these pieces can easily be proven via blockchain records. Thus, this can become a great tool to reduce counterfeiting.
ERC-20 token standard. However, it <strong>makes complex token trading possible<\/strong> and helps clear up any confusion over various processes like <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-minting/">minting and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-burning/">burning. This standard transforms current fungible token models and offers a safer and more effective approach to carry out the token exchange.<\/p>\n<p>Even though ERC-777 ontracts interact in the same manner ERC-20 contracts do, the distinctive feature of the former is a <strong>hook mechanism<\/strong>. It simplifies the exchange of tokens between accounts and contracts. The hook mechanism is enabled once the tokens get sent to a computer-based analytical contract.<\/p>\n<p>Besides that, the ERC-777 token standard has many more advantages. For starters, it allows anyone to <strong>add new capabilities to tokens<\/strong>. For example, you can add an emergency recovery mechanism that would assist you if you were to misplace your <strong><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private keys<\/a><\/strong>.<\/p>\n<p>Another advantage of ERC-777 is the \"<strong>tokensReceived<\/strong>\" code, which is included in a contract. It is activated when tokens are received. The code helps to avoid the duplicate call that occurs with the <strong>ERC-20<\/strong> token standard when only the ERC-20 token owner is changed during the asset transfer from one <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a> to another.<\/p>\n<p>Additionally, the ERC-777 uses the brand-new <strong>ERC-820 standard<\/strong>. It makes it possible to register meta-data for contracts, facilitating a fundamental type of introspection. In addition to expanding capabilities, this makes it possible for <strong>backward compatibility<\/strong>.<\/p>\n<p>Moving further, the token standard has a <strong>new transfer function<\/strong>. Any identification info can be added to the transfer in a field called \"bytes.\" It is then used to instantly alert the recipient contract when a transfer gets completed.<\/p>\n<p>Now, even though the early security issues of ERC-777 have been fixed, it can still have some limitations like any other token.<\/p>\n<p>For instance, since it is possible to send ERC-777 tokens to any Ethereum address, you can essentially transfer them to contracts that do not support them, completely locking them in. And, even if the tokens can be mannualy moved, it is very hard to identify who sent the tokens back and from where.<\/p>\n<p>If you're curious <strong>where to get tokens based on the ERC-777<\/strong> standard, you can acquire them on most popular exchanges like <a href=https://www.bitdegree.org/"//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a> or <a href=https://www.bitdegree.org/"//crypto//goon//bybit/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Bybit<\/strong><\/a>. For instance, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bancor-bnt/">Bancor (BNT)<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//maker-mkr-price/">MakerDAO (MKR)<\/strong><\/a>, or <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-loopring-lrc/">Loopring (LRC)<\/a><\/strong> are all based on this standard.<\/p>","definition":"a token standard for producing fungible tokens on the Ethereum network, which allows a novel token contract interaction method that is backward compatible.","status":"published","meta_title":"What is ERC-777? Definition & Meaning | Crypto Wiki","meta_description":"ERC-777 meaning: ERC-777 - a token standard for producing fungible tokens on the Ethereum network, which allows a novel token contract interaction method that is backward compatible.","meta_keywords":null}"
:prev-section="{"id":9198,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Ethereum","level":"easy","author_id":4,"created_at":"2023-07-19T10:24:32.000000Z","updated_at":"2023-12-04T08:18:24.000000Z","slug":"what-is-erc-4337","title":"What is ERC-4337?","section":"E","keyword":"ERC-4337","content":"<p>Essentially, ERC-4337 allows the creation of <strong>smart accounts<\/strong> that combine the functions of EOAs (externally owned accounts) and <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/a><\/strong> accounts, providing users with one account that allows both – creating smart contracts and making token transactions. In other words, the standard allows you to create <strong>non-custodial wallets as programmable smart contracts<\/strong>.<\/p>\n<p>Initially, it was proposed in 2021 by <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//who-is-vitalik-buterin/">Vitalik Buterin<\/strong><\/a> and other <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum developers as the EIP-4337 standard. However, only in March 2023, during the WalletCon event, it was introduced as a functional ERC-4337 standard.<\/p>\n<p><strong>What's the difference between ERC and EIP?<\/strong> Well, EIP (Ethereum Improvement Proposal) is the proposal of a potential new contract or token standard that is yet to be approved or denied. EIP becomes ERC (Ethereum Request for Comment) once it is authorized as an acceptable change through the on-chain governance.<\/p>\n<p>It's worth noting that this was not the first proposal for bringing account abstraction to Ethereum. There was also the <strong>EIP-2938<\/strong> standard proposed in the past, which also had the possibility of achieving account abstraction. However, <strong>it did require consensus layer changes<\/strong>, which is one of the reasons why it was not approved.<\/p>\n<h2>What is Account Abstraction?<\/h2>\n<p>Overall, Ethereum has two types of accounts - <strong>EOAs and smart contract accounts<\/strong>. EOAs are <a href=https://www.bitdegree.org/"//crypto//best-cryptocurrency-wallet/">wallets that users control and manage manually from outside the Ethereum blockchain, whereas smart contract accounts are smart contracts that act as cryptocurrency wallets.<\/p>\n<p>However, smart contract accounts don't have private keys or seed phrases, which means you can only carry out a specific activity when an EOA transaction activates the smart contract code. Therefore,<strong> a user must have an EOA in order to manage a smart contract account<\/strong>.<\/p>\n<p>Account abstraction is all about removing the need for separate accounts, combining EOAs and smart contract accounts into one \"<strong>smart account<\/strong>.\"<\/p>\n<h2>How Does ERC-4337 Operate?<\/h2>\n<p>The ERC-4337-based smart accounts function through the use of <strong>UserOperations<\/strong>. As the name suggests, UserOperations represent operations that are waiting to be carried out on the user's behalf. Every UserOperation is routed to the <strong>mempool<\/strong>, which functions as a holding area.<\/p>\n<p><strong>Bundlers<\/strong>, who resemble <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-node/">nodes that validate standard transactions, group these UserOperations requests into bundles. Then, these bundles are included in a block, where each individual UserOperation is verified and put into action. The bundlers pay gas for the bundled transactions, but they are <strong>compensated with fees from each execution of a UserOperation<\/strong>.<\/p>\n<h2>Key Benefits of ERC-4337-based Smart Accounts<\/h2>\n<p>Firstly, smart accounts created with ERC-4337 have a completely different type of wallet recovery compared to traditional EOAs. You see, <strong>this standard doesn't rely on private keys or seed phrases<\/strong>. Instead of that, you can assign a device, a person, or some sort of third-party program as your \"<strong>wallet guardian<\/strong>\" (or guardians, as you can assign more than one). If you misplace your credentials, wallet guardians can be used to assign new credentials for accessing your smart account.<\/p>\n<p>Moreover, the ERC-4337 standard allows you to <strong>batch several transactions<\/strong> and approve them at the same time. This can save both time and gas. In addition to that, you can <strong>automate transactions<\/strong> because you can establish a variety of characteristics, including access to particular tokens, gas limits, specific actions depending on pre-defined triggers, and much more.<\/p>\n<p>Lastly, you can <strong>create shared accounts (team wallets)<\/strong> with different levels of access. So, for example, you can create a wallet that can be accessed by five people. However, you can determine certain limits for the other four users, allowing them to access only a certain amount of crypto.<\/p>","definition":"an Ethereum standard that allows account abstraction without altering the consensus layer.","status":"published","meta_title":"What is ERC-4337? Definition & Meaning | Crypto Wiki","meta_description":"ERC-4337 meaning: ERC-4337 - an Ethereum standard that allows account abstraction without altering the consensus layer.","meta_keywords":null}"
:model="{"id":315,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Non-fungible_token#Standards_in_blockchains","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-01T05:12:42.000000Z","slug":"what-is-erc-721","title":"What is ERC-721?","section":"E","keyword":"ERC-721","content":"<p>ERC-721 is different from <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-20/">ERC-20 in the sense that <strong>ERC-721 tokens are<\/strong> <strong>non-fungible<\/strong>. <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs, or non-fungible tokens, are tokens that have different features setting them apart from one another.<\/p>\n<p>For example, a $20 banknote is fungible. This is the case because you can give one of these banknotes to someone, and there is no need for you to get the same one back, because they are all the same. A non-fungible example might be a concert ticket. Even though the two tickets appear to be identical, the places they provide might be completely different. As a result, they cannot be switched.<\/p>\n<p>In the Ethereum community, there is a strong belief that ERC-721 might have a variety of intriguing use cases that go far beyond collecting <strong>CryptoKitties<\/strong>, which made this asset class popular.<\/p>\n<p>A number of competing blockchains, including Binance Smart Chain, have also established <strong>token specifications that are comparable to ERC-721<\/strong>. These tokens aid in bringing the idea to the blockchain, making sure that sensitive information about the asset can be immortalized.<\/p>\n<p>Furthermore, NFTs can also be used to provide a <strong>digital version of one-of-a-kind masterpieces<\/strong>. Ownership of these pieces can easily be proven via blockchain records. Thus, this can become a great tool to reduce counterfeiting.<\/p>","definition":"a token standard for non-fungible tokens based on Ethereum.","status":"published","meta_title":"What is ERC-721? Definition & Meaning | Crypto Wiki","meta_description":"ERC-721 meaning: ERC-721 - is a token standard for non-fungible tokens based on Ethereum.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
:chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart 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Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo 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current-chapter="E"
current-section="what-is-erc-721">
