ERC – 721, a new standard for ethereum and startup use this standard to manufacture digital collectable kitties or pets for sale in the marketplace. Have you wondered why crypto pets such as #cryptokitties are collectable and are unique while there is no difference between your ethereum coin and my ethereum coin?
What is ERC: Non-fungible Token Standard #721?
Non-fungible means unique. ERC is an acronym of Ethereum Request for Comments. A standard allows for the implementation of a standard API for creating non-fungible tokens. To whom not familiar, ethereum, when launched during ICO, is using ERC-20 which ethereum coin can be broken down into smaller portion such as 0.000001. As you know, in coin, we don’t differentiate it by serial number. A government only use “serial number” to track the note and not on the coin. Hence, there is no way to distinguish or trace your coin and my coin. This behaviour is same in Ethereum coin. The startup has found a way to use ERC-721 to create a unique and traceable coin in ethereum blockchain technology. This is a breakthrough in blockchain technology.
What has ERC-721 better over ERC-20?
In recent weeks, a startup company named Cryptokitties launched on 23 Nov, the main product is selling digital collectable kitties. Each digital kitties is unique and you cannot slice them into smaller piece and sell them. It is a must to sell them as a whole unit.You can’t buy a quarter of a cat and if you could it probably would be worthless. This is the main difference between ERC 20 vs ERC 721. Besides, each kitty is given a catribute which is again one of its kind. This two make an advancement in ethereum protocol which able to make item derived from ERC-20 and add more uniqueness into the collectable item.
A unique and rare crypto kitties already sold at Usd110,000 and the price is rising when they can find a new buyer
Below tables shows the number of sales of Cryptokitties since the launched until 18 Dec 2017. (27 days from the launched date). Total of 153,739 kitties sold and worth USD 16.6 Million in total. (34,556 ethereum used during all the transaction).
Below are the sales stats for #cryptokitties for the duration from 23 Nov 2017 till 18 Dec 2017.
Below is the total kitties created per day and the sales during 23 Nov 2017 till 18 Dec 2017.
In short, ERC 721 has opened up of potential “manufactured collectable” which large company can create such a unique collectable item for its fans for their collections. I already can imagine brand such as Rolex or Tesla can build a digital collectable item of their product for their fans. The possibilities are limitless. A startup can use the ERC-721 standard to create a collectable item which is unique to be tracked in standardized wallets and traded on the secondary marketplace. This ability made Ethereum maybe the next coin to go into the major exchange.