What Are ERC-721 Tokens? The Ethereum NFT Standard Explained

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Did you know the global NFT market surpassed $22 billion in trading volume in 2021? At the heart of this digital revolution lies ERC-721 – the Ethereum token standard powering Non-Fungible Tokens (NFTs) and redefining ownership of unique digital assets.

Why ERC-721 Matters

ERC-721 tokens provide:

👉 Discover how NFTs are transforming digital ownership


Understanding ERC-721

Core Functions

FunctionPurpose
balanceOfCounts NFTs owned by an address
ownerOfIdentifies holder of specific token
safeTransferFromSecures token transfers with smart contract checks

Technical Breakdown

  1. Smart Contract Blueprint: Standardizes NFT creation
  2. Immutable Ledger: Records all ownership changes
  3. Metadata Support: Links to off-chain asset details

8 Game-Changing Benefits

  1. Digital Scarcity: Verifiable limited editions
  2. Fractional Ownership: Split high-value assets
  3. Cross-Platform Utility: Works in games, art, metaverses
  4. Royalty Automation: Built-in creator commissions

👉 Explore real-world NFT use cases


Creating ERC-721 Tokens: Step-by-Step

pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC721/ERC721.sol";

contract MyNFT is ERC721 {
    constructor() ERC721("MyNFT", "MNFT") {}
    
    function mint(address to, uint256 tokenId) external {
        _mint(to, tokenId);
    }
}

Key Development Steps:

  1. Set up Hardhat/Truffle environment
  2. Implement metadata storage (IPFS recommended)
  3. Deploy to testnet (Goerli)
  4. Conduct security audit

Industry Applications

SectorImplementation
GamingIn-game items
ArtDigital collectibles
Real EstateProperty deeds
EducationCertifications

FAQ

Q: Can ERC-721 represent physical items?
A: Yes – via "tokenized" ownership records

Q: How do royalties work?
A: Smart contracts auto-distribute resale %

Q: What wallets support ERC-721?
A: MetaMask, Coinbase Wallet, Trust Wallet


Key Takeaways

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