Non-fungible tokens, or NFTs, are now used around the world to represent ownership of various assets such as digital artwork, music, and even real estate. They have helped investors, brands, crypto enthusiasts, and developers explore countless new avenues in the blockchain space.

In fact, several well-known brands have now jumped on the NFT bandwagon. Taco Bell, for example, recently started offering its own NFTs by offering digital collectibles for sale. If you want to get a better idea of what NFTs are and how they work, read our article “What are non-fungible tokens or NFTs”.

If you already know about NFTs and the various benefits they offer, then creating your own NFT is certainly something that might interest you. In this article, we will take a look at how to create non-fungible tokens using the Ethereum 1155 standard.

Here we will help you gain better insight into the following topics:

  • What is a token standard?
  • Limitations of the ERC-721 token
  • What is ERC-1155 and how does it differ from ERC-721?
  • Features of ERC-1155 token
  • Creation of an NFT token with ERC-1155 standard

What is a token standard?

A token standard is a set of guidelines that describe the data, and therefore the functions, that each token can perform. Currently, the most commonly used NFT standards are ERC-721 and ERC-1155. ERC-721 is the main standard that allows us to develop unique, non-counterfeitable tokens for digital collectibles.

NFT token standard

If you want to get a better idea of how to create an NFT using the Ethereum 721 standard, you can take a look at our article ‘How to create an NFT or Non-Fungible Token? Part 1 ERC-721 Standard’

Limitations of the ERC-721 token

Despite the popularity of Ethereum 721, there are a few important limitations associated with this standard. One of the most important examples is the difficulty of transactions with such tokens. When using ERC-721, it is not possible to purchase a token identifier directly, which makes transactions much more difficult. Imagine a situation where you want to send 20 NFTs to someone. You need to make twenty different transactions, with an additional fee for each transaction. This means that the transaction costs associated with this standard are extremely high. Also, the network’s charging processes are often affected, which greatly impacts the usability of the Ethereum network.

Another major limitation we can see is the traversal of ERC-721 tokens. In order to do this efficiently, each token in the contract must be traversed in order to provide a response to the dApp and the user. So if an ERC-721 contract has 1 million tokens under its registration, a user must send a transaction to the network to learn the status of its tokens. This requires sifting through millions of tokens to match them with the user’s address and provide a response, which is an extremely time-consuming and inefficient process.

What is ERC-1155 and how does it differ from ERC-721?

While the ERC-721 standard is well suited for tokenization and the creation of unique assets that can be transferred between users, the collection of such tokens is often slow and inefficient. For this reason, many have turned to the ERC-1155 standard as it removes many of the limitations of using ERC-721. ERC-1155 tokens have often been praised for their multi-token approach. They support batch transfers of multiple tokens at once at a much higher cost than an ERC-721 token.

We can compare ERC-1155 tokens to a vending machine. Any developer can provide a single smart contract, which is often used to mint unlimited fungible and non-fungible tokens. The ERC-721 token standard, on the other hand, produces only non-fungible tokens, which means that developers must deploy a new smart contract for each new token.

Developers will use the ERC-1155 token standard to deploy a single smart contract and then mint new tokens in seconds. They can continue to use this one smart contract indefinitely and mint an unlimited number of fungible and non-fungible tokens.

Users can also send batch transfers of multiple fungible and non-fungible tokens using ERC 1155 in one go:

batch transfers of multiple fungible and non fungible tokens using ERC 1155

In addition, users can also exchange any amount of tokens easily and efficiently by following the steps below.

swap any amount of tokens easily

Using ERC-1155 offers several advantages over other token standards such as ERC-20 and ERC-721. It allows developers to consolidate logic into one contract and build an ecosystem around a single address. It also allows users to perform batch transfers using the same contract, all at a much lower cost. The main idea behind ERC-1155 is that a single smart contract can manage an infinite number of tokens.

Need help with NFT token development?

Contact us today to get started!

Features of ERC-1155 tokens

Batch transfers

ERC-1155 allows users to send multiple tokens in a single transaction. This allows them to save costs and time. If you use this standard, you can also create Atomic Swaps with the same design. This can help you exchange one type of token for another, with complete security against fraud and without an intermediary party.

Strict rules

This standard follows a very strict set of rules. When you send a token to an address, the token performs a deterministic smart contract function. For example, if you send a token to a DEX exchange address, the exchange could immediately send another token back to the sender’s address. Similarly, if a blockchain game receives an ERC-1155 token from a user performing a game function. Without having to access ABIs or communicate directly with the smart contract, tokens could be packaged, converted, designed, or deposited.

ID Substitution

A user can now refer to an infinite number of token URIs without storing additional data in the chain by using the substitution string “{id},”. This string can also be used in the JSON itself to automatically reference images for each token. This greatly reduces the amount of work developers have to do to display metadata for large sets of tokens.


Since token information is specified in JSON format, localization for multiple languages is now possible with {locale}. Alternate versions of token names, images, and other data can be displayed in wallets and applications that support multiple languages.

Creation of an NFT token with ERC-1155 standard.

The ability to support multiple tokens is one of the key features of ERC-1155. Imagine a scenario where each individual airline has a unique token. If you want to book a flight with three different connecting flights from different airlines, you would have to pay for each ticket individually. This could present many problems. Can you create a single multi-token contract that contains the individual tokens for each airline to solve these problems? This is exactly what is possible with ERC-1155. Instead of just one token class, you can add as many as you want.

Leave a Reply