Crypto Academy Week 12 | Homework Post for @pelon53 | Tokens, Part 2.
Introduction
It's another wonderful time to learn again about cryptocurrency in the academy, and this time, I read the lecture presented by professor @pelon53 which was a great one and I feel good to have been in attendance of the lecture. This article would be used to get the task solved.
Explain the ERC-1155 Token in detail.
What is ERC-1155 Token?
ERC-1155 token is a great innovation in the crypto ecosystem that was developed in the year 2017 and it's a protocol on the Ethereum blockchain that can be used to create fungible and non-fungible tokens. ERC-115 token serves a combo purpose as it can be used as a utility token and non fungible tokens at the same time.
The creation of ERC-1155 was necessitated by the limitations of the existing ERC-20 and ERC-721 tokens as both can only work independently, this incompatibility of both tokens was a big concern and that was led to the invention of ERC-1155 tokens that combines the works of ERC-20 and ERC-721 to produce a more useful token that can be used as a utility token and at the same time, non fungible token. An example of a platform that utilizes ERC-1155 tokens is Enjin Coin, a gaming platform.
Limitations of ERC-20 tokens that necessitated the creation of ERC-1155 tokens
The ERC-20 token is no doubt a great innovation as it enable users to interact with Decentralized Applications (DApp) through smart contracts on the Ethereum blockchain to develop token and also make transactions but it lacks "React" feature, having the "react" feature missing makes transaction not identifiable to a particular individual and if transactions were made to a wrong address, it stays that way and result in a loss for the sender. This is a great concern.
Limitations of ERC-721 tokens that necessitated the creation of ERC-1155 tokens
The invention of ERC-721 tokens was quite awesome as it allows original asset owners to tokenize their assets on the Ethereum blockchain using the ERC-721 tokens which was a great one that makes a digital asset traceable to the unique owner. The setback of the ERC-721 token is the cost involved, in a situation when a user is trying to send 5 NFTs (Non Fungible Tokens) to the same address, the 5 NFTs can't be sent once but rather can only be sent 5 times having transaction cost attached to each of the 5 times. This makes the transaction cost of the ERC-721 token cumbersome as it fail to obtain a token identifier.
Limitations of both ERC-20 and ERC-721 tokens that necessitated the creation of ERC-1155 tokens- Incompatibility
ERC-20 and ERC-721 tokens are not compatible with each other and that makes inter-transaction between both a worrisome one as each are triggered by smart contracts which is quite hard to integrate both, and transaction at the same time using the same address. ERC-1155 tokens has come to solve this problem as it combines both tokens in one, ERC-1155 can serve as an utility token (ERC-20) and also as Non fungible tokens (NFTs-ERC721) which allows smooth integration between both tokens.
Features of ERC-1155 token
Multiple Use- ERC-1155 tokens serve as Fungible tokens and Non Fungible tokens.
Less Cost- ERC-1155 tokens are characterized with lesser transaction cost compared to the earliest ERC-20 and ERC-721 tokens.
Multiple transaction- Multiple transactions can be made at the same time to the same address as contrary to the ERC-721 that takes repeated transactions to complete a desired transaction.
More Options- ERC-1155 tokens allow users use, trade, destroy, upgrade, lose... their assets at will with no hindrance.
Explain how you verify the amount of ERC-721 tokens existing at the time of doing your homework. Present screenshot (use etherscan)
- The first step is to visit etherscan.io/ from my mobile.
- On the etherscan.io landing page, select the three horizontal lines by the top-right of the page to explore more options.
- Click on tokens and select ERC-721 Top Tokens.
Etherscan.io landing page
Tokens
ERC721 Top Tokens
- The number of the ERC-721 Tokens available at the moment is shown which is a total of 11,062 ERC-721.
ERC-721 tokens available at the moment- 11,062 ERC-721
Explain the TRC20 Token and check the amount of TRC20 tokens existing at the time of doing your homework. Present screenshot (use tronscan)
What is TRC20 Token?
TRC20 tokens are known to be tokens which are the native tokens of the Tron blockchain such that the TRC20 tokens are created on the Tron protocol through smart contracts to give birth to a TRC20 token using the Tron Virtual Machine (TVM). TRC20 tokens have some similar characteristics as the ERC20 token because both have their creation through smart contracts, and has a lot of differences.
In other words, TRC20 tokens are Tron blockchain-based token which has their creation from the Tron blockchain and an example of the TRC20 token is TRX (Tron) which is a native token of the Tron blockchain and currently the price of TRX is around 0.1289 USD as at the time of writing this article and it's on number 20 by market capitalization ranking. Many crypto in the crypto ecosystem have some of their coin deployed on the Tron Blockchain and the USDT (Tether) stablecoin is not an exception with USDT TRC20, which makes users to send and receive USDT through the Tron network to take advantage of the benefits of the Tron blockchain.
TRX current price and market capitalization ranking
Features of TRC20 Tokens
- It's compatible with smart contracts.
- Transaction cost is very low.
- The speed of transaction is very high and up to 2000 transactions per seconds.
- TRC20 tokens can be transacted through P2P (peer to peer) trading, eliminating the presence of third parties in transactions.
- They can be accessed through Decentralized Applications (DApps).
Comparison of TRC20 and ERC20 tokens
| Feature | ERC20 Tokens | TRC20 Tokens |
|---|---|---|
| Blockchain | Ethereum | Tron |
| Smart Contracts | Yes | Yes |
| Transaction fee type | Gas fee | Consumes Energy & Bandwidth |
| Transaction fee | High | Low |
| Transaction Speed | Up to 30 transactions per second on Ethereum 1.0 version | Up to 2000 transactions per seconds |
How to check the amount of TRC20 tokens available at the moment
- Visited tronscan.io/ from my mobile.
- Select the three horizontal lines by the top-right of the page to explore more options.
- Select token and more options are shown.
- Click Token Tracker.
Tronscan.io landing page
Tokens
Tokens Tracker
- At this stage, you have the number of all tokens on the Tron blockchain displayed.
- Switch to TRC20. And 15,858 TRC20 tokens are available at the moment.
Switch to TRC20
TRC20 Tokens available at the moment- 15,858 tokens
In conclusion, ERC-1155 tokens has brought change to the crypto ecosystem serving two purpose at the same time, as Fungible tokens (Utility tokens) and Non Fungible Tokens (NFTs) which hs enabled the perfect integration of both ERC-20 and ERC-721. And this has enhanced transactions utilizing ERC-20 and ERC-721 at the same time, and through the same address. Thanks to professor @pelon53 for this wonderful lecture and I'm glad I took part in it. Thank you all.
Cc: @pelon53
Written by; @fredquantum
Gracias por participar en Steemit Crypto Academy:
Muy buen trabajo. las captures de pantallas muy grande y se pierde allí la información.
Calificación: 9.0
Thanks for the review professor @pelon53. I will work on giving more presentable screenshots next time. Thank you, sir.