- Understanding Non-Fungible Tokens (NFTs)
- What is a smart contract?
- NFT standards
- What is ERC721A?
- What are the benefits of ERC721A?
- Final Thoughts
ERC721A is designed to overcome the Ether gas fees and scalability issues of Ethereum. The ERC721A standard reduces transaction fees and alleviates the problem of network congestion. Here, we focus on the key features and benefits of ERC721A in NFT development.
Understanding Non-Fungible Tokens (NFTs)
An NFT is a one-of-a-kind digital asset that’s indivisible. It has distinctive identifiers that reside in NFT contracts. So, with this data, you can distinguish between non-fungible tokens, making each one unique. The critical properties of NFTs include:
- Indivisibility: NFTs are indivisible as regards their usage. For instance, an aircraft ticket cannot be bought and used partly. You have to buy the whole of it because you’re the only one to use the seat.
- Scarcity: An essential property that expands the value of NFTs is their uniqueness. Although Batch minting is possible, developers should limit the number of NFTs to attain scarcity.
- Uniqueness: Each NFT is distinctive because of the unmodifiable metadata that provides a certificate of authenticity.
- Ownership: Non-fungible tokens reside on a decentralized ledger with a specific account. The initial creators of the artworks regulate the account’s private keys where the artwork stays. They can hand over their NFT to any other account.
What is a smart contract?
A smart contract is a digital agreement where the terms of a contract are set in a computer code. The digital agreement is kept on the spine of the blockchain, and it self-executes when the predetermined conditions are met. NFTs are operated by smart contracts that multiple direct actions, such as:
- Owner verification
- Handling of the process of transfer
- Connecting to other virtual assets
- Managing royalty payments
Minting is the act of creating an NFT. Through minting, you can write the underlying digital agreement code, which determines the quality of the non-fungible tokens. Multiple token standards exist for smart contracts, such as ERC 721, BEP 721, and ERC721A.
The most common standard that NFT creators use is ERC 721. This standard was created to surmount the weaknesses of ERC 20, which is functionally the same and swappable. On the other hand, ERC 721 is one-of-a-kind, indivisible, and can be used as a certificate of ownership for a virtual item.
ERC 721 allows the integration of NFT technologies with games. Thus, many game developers are motivated to create their decentralized games through this technology. However, ERC 721 has limitations, such as high transaction costs and limited information storage.
So, to enhance the utility of non-fungible tokens, developers have improved ERC 721 via the introduction of advanced standards. For example, the Azuki NFT project has created ERC721A, an improvement of ERC 721. The Azuki digital contracts will allow batch minting for the same expense as minting one digital collectible.
What is ERC721A?
NFT developers understand that launching digital contracts on the Ethereum base network is a costly affair. But NFT smart contract charges aren’t the only expenses that creators and minters need to consider. Creating non-fungible tokens includes the development of a community and allowing users to easily mint, trade, and use the collectibles. So, you need to create an NFT minting contract that can facilitate the requirements mentioned above. And this is how ERC721A comes in handy.
ERC721A is a robust standard that facilitates Batch minting. Implementing ERC721A NFT contracts reduces gas fees during NFT Batch minting. You can save up to 80% on mints if you use this NFT minting contract. Furthermore, you can avoid the notorious network congestion associated with the Ethereum magnet if you use this solution.
- Minimize wasted keeping space of token metadata
- Minimize ownership state updates to once per batch minting.
What are the benefits of ERC721A?
ERC721A tokens are helpful for various commercial verticals, such as healthcare, digital learning, media, and finance. Here are their significant benefits:
Thanks to the new token, there are multiple opportunities for investors. A ticket that has the features of ERC721A can indicate the value of any digital collectible that stays on the Ethereum decentralized ledger. Here are some assets that the NFT smart contract supports:
- Unique digital artworks
- Tweets and social media content
- In-game NFTs
- Any cartoon character
Indication of property ownership
Real estate property possesses the maths quality of being rare. This is because land occupies a particular geographical position which geographical coordinates can decide. So, two plots or rooms can’t have similar geographical coordinates physically. And through ERC721A, you can turn your property into NFTs. There are various kinds of property represented by ERC721A tokens, including:
- Land-plot tokens: This represents a specific plot of land with its one-of-a-kind geographical coordinates. Each token keeps information on the borders of the land in NFT contracts. The tokens store real coordinates in various forms, such as Latitude & Longitude, Geohash, etc. All the information is stored in the decentralized ledger.
- Entire Building Tokens: These signify the whole building with its geographical coordinates, physiography, and other identification credentials. The information regarding the regional anatomy of the structure-wall and roof topology- is kept in IPLD with the support of the IPFS network.
- Room tokens: these resemble land-plot coins, although each signifies a particular section of the structure instead of a land plot. They are also geographical coordinates, and their data is stored in IPLD with the assistance of IPFS protocol.
Represents owners and partners of real estate
During NFT development, the ERC721A can be used to define the owners and partners of plots on the decentralized ledger exclusively.
Development of movie and plane tickets
ERC721A is vital in the development of movie and plane tickets. These tickets can then be stored in the decentralized networks, and they help minimize fraud incidents.
What is a smart contract if it lacks security? Besides reduced Ether gas fees, ERC721A comes with bank-grade protection.
The Web3 website manages all matters related to ownership. So, ERC721A is free from surveillance.
Non-fungible tokens are non-transferable due to their uniqueness. However, through their NFT contracts, one can exchange their licenses.
Helpful in KYC Process
These tokens are used to facilitate KYC processes for educational certs, healthcare data, and software permits.
The main problem with ERC 721 standard is the high amount of gas fees and lack of enough storage space. ERC721A is an extension of the above-mentioned standard that makes it possible for batch minting with reduced gas fees. Here, we’ve explored some critical benefits of ERC721A.