What Is ERC-721?
ERC-721 is a type of Ethereum token that allows for the creation and ownership of non-fungible tokens (NFTs). These tokens are unique, meaning each one has its own distinct characteristics. This makes them ideal for use in digital collectibles, gaming items, virtual real estate, artwork, or any other asset that requires individual tracking and authentication. Unlike traditional cryptocurrencies such as Bitcoin which are fungible (each unit is interchangeable with another), ERC-721 tokens can be used to represent anything from rare art pieces to game assets.
The main benefit of using an ERC-721 token over a standard cryptocurrency like Bitcoin is that it provides more flexibility when creating digital assets. For example, if you wanted to create a virtual property market where users could buy and sell land parcels on the blockchain then you would need some way to track who owns what parcel at any given time – this is exactly what ERC-721 does! Additionally, since these tokens are non-fungible they can also be used as rewards or incentives within games or applications; allowing developers to reward players with unique items instead of generic ones.