Ethereum is known for its ability to be able to develop new tokens through its smart contracts on its network.

Like the other standards that ETH owns (ERC-20 and ERC-721), ERC-1155 is a formulation designed to create useful tokens that make life easier for developers. In this way, the ERC-1155 token can do the same functions as an ERC-20 and ERC-721 token, and even both at the same time, improving the functionality of both standards, making them more efficient and correcting implementation errors on those standards.

To understand a little better why ERC-1155 tokens were created, it is necessary to know some intermediate points that will give us a better understanding of this point. Among those points we can mention:

• ERC-20 token limitations:

Ethereum's ERC-20 (for fungible tokens) and ERC-721 (for non-fungible tokens, NFT) tokens are widely used. However, both tokens have limitations. For example, in the ERC-20 token, a major limitation of the token is the lack of a way to "react" to ERC-20 transfer events. This results in ERC-20 tokens being trapped forever in contracts when users accidentally send tokens to the wrong address. Thus, if you transfer to the wrong ERC-20 address, that which you transferred is lost forever.

• Limitations of the ERC-721 token

On the other hand, ERC-721 tokens also have their own limitations. In fact, if for example you have a set of 10 NFTs that you want to transfer to another person, that transfer will require you to perform 10 different transactions, with its corresponding commission charge from each one and that raises a lot the cost of this simple operation, as well as the transaction load of the network, having a big impact on the usability of the Ethereum network. In those scenarios you will have to transfer token by token, being impossible to transfer all 10 at the same time.

• Incompatibility between ERC-20 and ERC-721 tokens.

In fact, the contracts are so different that creating additional functionality linking the two is difficult, and would likely have a strong impact on the network, potential failures and high commission costs.

If the same smart contract could be used to handle everything, it would be much simpler to program, as well as being more secure and less complex to design. Against this background, the ERC-1155 has been created to unite both worlds (ERC-721 and ERC-20) under the same contract, overcoming the limitations they have and making their management more efficient. Not only that, this solution would even avoid the huge fragmentation of tokens that currently exists.

For example, this would allow a DApp developer to use ERC-1155 to allow users to register fungible tokens (tokens that can be used as payment currencies) and non-fungible tokens (collectibles, interchangeable items within the DApp or game) under the same address.

What can you really do with an ERC-1155?

Bulk transfers as standard

It allows the transfer of several tokens in the same operation, making a single operation to make this transfer effective. In this way it is possible to save transaction cost, minimize the impact on the network, and enable trading system.

Multiple tokens in a single contract.

An ERC-1155 token can describe the existence and operation of multiple tokens at the same time. That is, it can create one or more fungible tokens (such as ERC-20) and can also describe one or more non-fungible tokens (such as ERC-721) all within the same contract, facilitating the scheduling of the tokens.

Secure token transfer

Perhaps one of the most promising functions of the ERC-1155 token is secure token transfer. To this end, the standard ERC-1155 smart contract includes a function that verifies that the transaction has been completed, and if not, reverses the transaction to return control of the tokens to the issuer.

It is a token created under Ethereum network standards. The standard was designed with the aim of creating interchangeable tokens but with the particularity of being unique and non-fungible. That is, to be able to create unique tokens, where their value is given by their rarity. In short, an ERC-721 token is nothing more than a "collectible" token. This means that it will be more attractive to future buyers or "collectors".

This has made it possible to build a whole new token ecosystem on the Ethereum blockchain, powered by the concept of digital scarcity, where the value of objects is maintained and increased due to the uniqueness of their properties.

Why was the ERC-721 token created?

ERC-721 tokens have the ability to generate a unique token with unique properties, for example, in the case where a museum wishes to register its most valuable works for auction. And that in addition, you can obtain one of these works thanks to a special draw that will take into account the ticket of each specific participant. The person with the winning ticket will not only have a ticket, but will have access to a valuable work of art. In this example, the ticket is our ERC-721 token. This ticket is a token issued with characteristics that make it unique. And that uniqueness is what gives it the great value (the artwork)... At the time of writing these words, we can find that there are a total of 11,044 different ERC-721 tokens created on the ETH network. This information can be observed on the Etherscan website.

What are the characteristics of the ERC-721 token?

• Each ERC-721 token has a unique name and symbol.
• They have the total supply of the token defined.
• They contain a field indicating the balance of tokens within an address.
• They have a field called "Owner" defined, which guarantees the non-fungibility of the token and cryptographically identifies the token.
• It has a field called "Approval", which grants permission to another entity to transfer the token on behalf of the owner.
• There is also another field called "Takeover", which allows a user to own a certain amount of tokens and want to withdraw them from another user's balance.

The "Transfer" field, on the other hand, allows the sending of tokens to another user in the same way as would happen with a cryptocurrency and details to which account the token was sent and which one received it, along with the ID of that token. Due to the uniqueness of the token and the fact that a user can own several ERC-721 tokens, the "Owner Token by Index" field has been created. This feature allows tracking of tokens by means of a unique ID. Finally, ERC-721 tokens have a field called "Token Metadata". It is precisely this field that enables their non-fungible status and houses all those properties that distinguish a token from all others.

The TRC-20 token, is a technical standard used in smart contracts on the TRON blockchain (TRX) thanks to the Tronscan website we can see how many tokens currently exist; at the moment there are 36,619 tokens in circulation on the network. In this system new tokens are issued using the TRON virtual machine (TVM). The interesting thing about this is that it not only has the functions of Ethereum's (ETH) ERC-20, but is compatible with it.

A programmer who wants to issue a digital asset, with certain features and functions, can employ the TRC-20 token. This will be useful for performing transactions and operations on the TRON blockchain (TRX). Whether creating decentralized exchanges, developments for decentralized finance lending or gaming. The most popular token issued on the TRC-20 network, is the Theter USDT, a stable coin that always maintains the value of one dollar.

The TRC-20 token is used in the developments available on the Tron Link In order to issue a TRC-20 token the user must be clear that the main TRON network uses the TRX or tronix for exchange, payments or build on top of it. The network on which the TRC-20 token runs is built on top of the main network. The example of Theter (USDT), a company that issues stable currency on different networks, is the most accurate to cite.

Just as Theter (USDT) exists on Ethereum, on EOS and on the OMNI network, it also exists on TRON (TRX). In this case using the TRC-20 token. The company that issues the stable coin, benefits from the ability to issue, hold and transfer value, using the smart contract. These are free, transparent processes, and with zero transfer fees, as well as highly scalable or fast.

By using the TRC-20 token, in the case of the example cited, Theter's (USDT), it leads the common user to implement the decentralized applications built on TRON (TRX). Within its entire system, there are multiple options payments to use any development, are made within the standard.

The TRC-20 token has been used to issue derivatives of other cryptocurrencies, as in the case of the Poloniex exchange. Within the network, other assets are blocked, allowing different blockchains to be crossed. For example, bitcoin can be converted into a spending currency, or exchange, within the TRON network (TRX), and retaining the same market value. By issuing a TRC-20 token, previously backed with real bitcoins.

How to create a TRC-20 token?

To create a token in the TRC-20 network is simple and inexpensive, but, of course, you need to know programming skills. It is not only about creating a smart contract, but the whole set of solutions around it. For those who are proficient in this area, the process is simple and inexpensive. To issue a new TRC-20 token, at least 10 TRX are required. The user programmer prepares his smart contract, with the name of his coin and the code. He deploys his TRC-20 smart contract, takes it through a compilation process and performs other technical steps to connect it to the wallets. It then performs verification, validation and registration in the Tronscan. Solutions in TRON (TRX) are efficient, compared to other networks where smart contracts are used, mainly in spending. The user blocks TRX coins to obtain energy and bandwidth, in addition to being able to vote on the network. Two resources that help to avoid the very high commissions found in other virtual networks.