How Ethereum ERC-1115 Token Standard May Bring a New Age Digital Asset Ownership

An Ethereum token standard that represents fungible and nonfungible assets could spark a new wave of asset trading in the digital space.

Even established game studios, which are brilliantly positioned to profit from the trade of digital assets between their customers, can find it difficult to work out exactly how digital assets can assume value, become collectible, and be transferred between parties.

Part of the reason for this delay is the complexity of the tools which facilitate digital asset ownership.

Enter ERC-1155, a new type of token standard built on the Ethereum blockchain that can facilitate the ownership of both fungible and nonfungible assets.

First, let's examine some basics of digital asset ownership and the difference between fungible and nonfungible tokens.

A nonfungible token is a unique token that represents a unique asset.

One of the best examples of a nonfungible digital asset is a CryptoKitty.

Where ERC-1155 Comes In. In recent years, fungible digital assets on the Ethereum blockchain have been represented by ERC-20 tokens, while nonfungible assets have been represented by ERC-721.

Existing token designs require a multi-step process to exchange one kind of token for another, without an intermediary.

Digital assets can be stored in a single ERC-1155 contract with the minimum possible amount of data needed to distinguish the token from others.