ERC-721 is a technical standard used on the Ethereum blockchain to create non-fungible tokens, which people refer to as NFTs. ERC-721 tokens differ from cryptocurrencies like Ether and ERC-20 tokens because they exist as individual distinct assets. Each token possesses unique characteristics which prevent its direct exchange with other tokens through one-to-one transactions.
The ERC-721 standard was introduced in 2018 and became the foundation for most early NFT projects. The standard establishes development guidelines which developers must adhere to when they create unique digital assets for Ethereum. The rules enable all wallet systems and marketplace platforms and application software to identify and handle NFTs through standardized methods.
People use ERC-721 tokens to represent digital art and collectibles and gaming items and virtual real estate. Every token consists of an identifier which sets it apart from all other tokens and it includes metadata that describes its attributes, including name, image, and traits. The blockchain system records ownership information which enables anyone to check who possesses a particular token at any moment.
Because ERC-721 tokens have non fungible properties, they cannot be divided into smaller portions like cryptocurrencies. The tokens transfer between wallets as complete assets. The feature enables them to function as digital assets which need distinctiveness together with proof of ownership.
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