ERC-721 Token Standard
Ethereum Request Comment otherwise referred to as ERC-721 is simply a standard of token on the Ethereum network that has been created or designed to facilitate non-fungible tokens (NFTs) on the network's blockchain. While the ERC-20 token standard which can be said to be the most popular Ethereum token standard has been created to enable fungible tokens, the ERC-721 standard lays emphasis on non-fungible tokens. Before we understand this token standard, it is best that we understand what fungibility and non-fungibility mean.
Fungibility has two main attributes or features which are; interchangeability and quantity. They can be interchanged for one another or have one unit replaced for another. Also, units of a fungible asset can be merged together to get a larger amount or number. A non-fungible token, on the other hand, is a token that cannot be interchanged or replaced with another. In addition, you can't add or divide a non-fungible token because each unit is unique. Now that we have gotten an idea of what non-fungible tokens are, it is best that we state what ERC-721 standard does. It simply identifies a set of methods which help in the identification and interaction with non-fungible assets. Some of the functions of this token standard include;
- It returns the balance of an address
- It is capable of returning the owner address of the token
- It transfers token from a wallet address to another with an underground check run to ensure that the recipient is able to accept the token to ensure that it does not get lost or burned.
the use-case of Blockchain in the Fashion Industry
As mentioned, the ERC-721 token standard enables the operation of non-fungible assets. This makes it ideal for the fashion industry. It can be used in this industry to tokenize valuable products to prevent counterfeiting of these products. The influx of fakes is a huge problem for brands and consumers. With this token standard enabling each of these products, the issue of counterfeit products on a large scale could become a thing of the past. That is why several luxury brands are working on their own blockchain solutions.
You will find it interesting to know that currently the ERC-721 token standard is being used in the fashion industry. At Satoshi Studio, we are currently using this standard to ensure that customers get their hands on only quality and authentic sneakers and other products. With the integration of blockchain, each Satoshi Studio product comes with a NFC chip in a label holder giving access and ownership to a unique ERC-721 token. It is like giving an authenticity stamp that can be verified and viewed on any smartphone. Aside from solving the counterfeiting issue, Satoshi Studio plans to use blockchain to create an efficient and more sustainable model. Customers will be able to send back their old worn-out products for recycling and earn in the process Satoshi Studio tokens to buy new products.