ERC721 vs ERC1155: Key Differences Every NFT Creator Should Know

Non-fungible tokens (NFTs) have reshaped how creators, developers, and collectors think about digital ownership. At the heart of NFTs are blockchain standards that define how these tokens are created, stored, and transferred. Two of the most widely used standards are ERC721 and ERC1155. While both allow developers to issue NFTs, they are built for different purposes and come with distinct features. Understanding how they work is essential for anyone looking to launch or manage digital assets on Ethereum or compatible blockchains.

What Is ERC721?

ERC721 was the first widely adopted standard for non-fungible tokens. Each ERC721 token is unique, meaning it cannot be directly exchanged on a one-to-one basis with another ERC721 token. This property makes it ideal for representing assets where individuality matters.

Key characteristics of ERC721:

• Uniqueness: Every token has a unique ID, making it suitable for one-of-a-kind digital items.

• Single asset per contract call: Transactions usually handle one token at a time, which can lead to higher gas fees during bulk transfers.

• Provenance and authenticity: Because each token is distinct, ERC721 is popular for digital art, collectibles, and rare in-game items.

For example, CryptoKitties — one of the earliest NFT projects — used ERC721 to issue individual cat tokens, each with unique traits and metadata.

What Is ERC1155?

ERC1155 was introduced as a more flexible and efficient token standard. Unlike ERC721, it can handle both fungible and non-fungible tokens within a single smart contract. This hybrid approach allows developers to manage large batches of digital assets without deploying separate contracts for each type.

Key characteristics of ERC1155:

• Batch transfers: Multiple tokens can be sent in one transaction, reducing gas fees significantly.

• Multi-asset support: Both unique NFTs and identical tokens (like in-game currency) can coexist under the same contract.

• Optimized storage and performance: ERC1155 minimizes data duplication and improves scalability for projects with many token types.

A good example is the blockchain game “Gods Unchained,” where ERC1155 allows developers to mint unique cards alongside common items in one contract, making the process more cost-efficient.

Core Differences Between ERC721 and ERC1155

While both standards secure digital ownership on the blockchain, they solve different problems:

1. Token Type

   • ERC721: Designed only for unique, one-off tokens.

   • ERC1155: Can manage unique NFTs and fungible tokens simultaneously.

2. Transaction Efficiency

   • ERC721: Each transfer usually involves a separate transaction.

   • ERC1155: Allows batch transfers, saving on transaction fees and network resources.

3. Contract Deployment

   • ERC721: Typically requires separate contracts for different token collections.

   • ERC1155: Can issue multiple collections or asset types from a single contract.

4. Use Cases

   • ERC721: Ideal for rare digital art, individual collectibles, or single-edition virtual items.

   • ERC1155: Best for gaming ecosystems, marketplace tokens, or any project involving mixed assets.

When Should NFT Creators Choose ERC721?

ERC721 is a strong fit when every token needs to carry its own distinct value or identity. Artists minting one-of-one artworks, musicians releasing unique tracks, or creators issuing limited edition collectibles may prefer ERC721 because of its straightforward design and clear uniqueness.

When Should NFT Creators Choose ERC1155?

ERC1155 is more suitable for complex ecosystems with large token supplies. Game developers or platforms selling both rare items and common resources benefit from the batch-minting and transfer capabilities. It’s also a good option for projects seeking to reduce operational costs on Ethereum or other compatible chains.

Practical Considerations Before Choosing a Standard

• Development tools: ERC721 is well-documented and widely supported in NFT marketplaces. ERC1155 has growing support but may require additional integration work.

• Gas fees: If your project expects high transaction volume, ERC1155 can reduce costs.

• Marketplace compatibility: While most major NFT marketplaces support both, some niche platforms may favor ERC721.

• Long-term flexibility: If you plan to expand your collection with mixed asset types, ERC1155 provides more room to scale.

Examples in Real Projects

• ERC721 in action: Projects like Bored Ape Yacht Club and Azuki use ERC721 to ensure each NFT is individually verifiable and rare.

• ERC1155 in action: Titles like Enjin-powered games and The Sandbox use ERC1155 to efficiently manage thousands of tokenized assets without deploying new contracts for every item.

Final Thoughts for NFT Creators

ERC721 and ERC1155 are not competing standards — they serve different needs. ERC721 prioritizes uniqueness and simplicity, while ERC1155 focuses on flexibility and efficiency. Understanding these differences helps creators choose the right foundation for their NFT collections, balancing authenticity, performance, and cost. By aligning the token standard with your project’s goals, you can build NFTs that are both technically sound and user-friendly.