How NFT Standards Define Functionality in Blockchain Systems

How NFT Standards Define Functionality in Blockchain Systems

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Why gas costs matter: Higher gas costs mean more money spent on blockchain transactions. ERC-1155 and ERC-721A can save you up to 90% compared to standard ERC-721.

When you buy an NFT, you’re not just buying a digital image or a collectible. You’re buying a token that carries rules-rules that tell the blockchain how to treat it, who can own it, how it can be transferred, and even how it shows up on a marketplace. These rules aren’t optional. They’re written into NFT standards, and they’re what make NFTs work at all.

What NFT Standards Actually Do

Think of NFT standards like the instruction manual for a toy. Without the manual, you don’t know how to assemble it, what batteries it needs, or if it’s safe for kids. NFT standards do the same thing for digital assets. They define exactly how a token behaves on a blockchain.

The most important job of an NFT standard is to make sure every wallet, marketplace, and smart contract can understand the same language. If OpenSea can’t read the token format that a creator uses, the NFT becomes invisible. If a game can’t recognize the NFT as a weapon or a character, it’s just a file sitting in your wallet. Standards fix that.

They also enforce ownership. Every time you transfer an NFT, the standard checks: Is this sender the real owner? Is the recipient address valid? Does the recipient know how to accept this kind of token? If any of those checks fail, the transaction gets rejected. That’s not a bug-it’s the whole point. It stops people from accidentally sending NFTs into black holes or losing them forever.

ERC-721: The Original Blueprint

The first real NFT standard was ERC-721, launched in early 2018. It was built for CryptoKitties, the game that made NFTs famous. Every cat was unique, and ERC-721 made sure each one could be tracked, traded, and verified on Ethereum.

Here’s how it works: Each token has a unique ID. When you send one, you must specify three things: your address, the receiver’s address, and the exact token ID. No shortcuts. No batches. One token per transaction.

That sounds simple, but it’s expensive. Minting one ERC-721 NFT costs around $1.85 at current Ethereum gas prices. Sending 100 of them? You pay $185. And if you send one to a wallet that doesn’t support ERC-721? The NFT disappears. There’s no warning. No refund. Just gone.

Developers learned the hard way. Reddit threads and GitHub issues are full of stories like this: “I sent my NFT to a contract and lost it. I didn’t know the contract had to implement tokenReceiver.” That’s not user error-it’s a design flaw baked into the standard.

But ERC-721 has one big advantage: it’s everywhere. OpenSea, SuperRare, Foundation-all of them were built around it. If you want your NFT to be seen by the largest audience, ERC-721 is still the default.

ERC-1155: The Game Changer

In 2018, Enjin released ERC-1155 to fix ERC-721’s biggest problem: inefficiency. Instead of one token per transaction, ERC-1155 lets you send dozens-or even hundreds-in a single click.

It’s not just for NFTs. ERC-1155 can handle fungible tokens (like in-game currency), non-fungible tokens (like rare swords), and even semi-fungible ones (like limited-edition skins) all in the same contract. That’s why games like Axie Infinity use it. Instead of making 10 separate transactions to send 5 SLP tokens and 5 Axies, players do it in one. Gas fees drop by 90%.

Here’s the math: ERC-721 uses 45,000-60,000 gas per transfer. ERC-1155 uses 17,000-20,000 gas per additional token. So sending 100 NFTs with ERC-721 costs about 4.5 million gas. With ERC-1155? Around 2 million. That’s $80 saved at current prices.

It’s not perfect. Some developers struggle with mixed token accounting-keeping track of how many of each type they have. But for gaming, marketplaces, and any project that needs scale, ERC-1155 is the clear winner.

Side-by-side comparison of single and batch NFT transfers with gas cost differences and gaming UI elements.

ERC-721A: The Smart Upgrade

You can’t ignore ERC-721A. It’s not a new standard-it’s a smarter version of ERC-721. Created in 2022, it keeps all the compatibility of the original but adds batch minting.

Before ERC-721A, minting 1,000 NFTs meant 1,000 separate transactions. That cost $1,842 in gas. With ERC-721A? Around $184. That’s why artists and collectors started switching. One creator on OpenSea saved $387 on a 100-piece collection. Another minted 5,000 NFTs for under $200 instead of over $9,000.

It’s still ERC-721 underneath. So your NFTs work on every platform that supports the original. But now, you don’t pay the price for scale.

Other Standards: Beyond Ethereum

Ethereum still holds 78% of the NFT market, but it’s not the only player.

On the Stacks blockchain, SIP-009 lets you create NFTs secured by Bitcoin. That means your digital art is anchored to the most secure blockchain in crypto. It’s slower, less flexible, but trusted by Bitcoin purists.

Tezos uses FA2, a flexible standard that supports both fungible and non-fungible tokens with low fees. It’s popular in Europe for eco-conscious NFT projects because Tezos uses far less energy than Ethereum.

Then there’s Sui. Its Object Display standard doesn’t just define ownership-it defines how your NFT looks. Every NFT must include a name, description, image URL, and project link. That means your NFT looks the same on Sui wallets, marketplaces, and apps. No more broken images or missing metadata.

Global NFT standards map with five blockchain towers connected by data streams and a user holding a compatible token.

Why It Matters for You

If you’re a collector, you care about where your NFTs live. ERC-721 means wider compatibility. ERC-1155 means lower fees when you trade. ERC-721A means you can afford to mint more.

If you’re a creator, you need to pick the right standard before you start. Want to sell art? Start with ERC-721 or ERC-721A. Building a game? Go with ERC-1155. Need Bitcoin security? Try SIP-009.

If you’re a developer, you’re dealing with real consequences. A wrong tokenReceiver implementation can lose users’ assets. Poor metadata handling can make NFTs invisible. And if you don’t account for gas spikes, your minting campaign could bankrupt you.

The Future: More Standards, More Chaos?

Right now, there are at least six major NFT standards-and more coming. Ethereum’s EIP-6454 is testing temporary delegation to fix approval security flaws. Bitcoin’s BRC-69 is in development, aiming to bring NFTs to the Bitcoin chain. Solana and Polygon have their own versions too.

That’s not necessarily bad. Innovation thrives when there’s choice. But it’s dangerous for users. If your NFT from Ethereum can’t be used on a Sui game, or your Stacks NFT doesn’t show up on OpenSea, you’re locked out.

Gartner predicts that by 2026, 70% of major platforms will support at least three standards. That’s progress-but only if the tools to bridge them get better.

What to Do Now

Here’s what to remember:

  • For digital art and collectibles: Use ERC-721 or ERC-721A. It’s the safest bet for visibility.
  • For games, apps, or bulk items: Use ERC-1155. Save money, reduce complexity.
  • For Bitcoin-backed assets: Look at SIP-009 on Stacks.
  • For low-cost, eco-friendly NFTs: Consider Tezos (FA2).
  • For consistent display and fast transfers: Try Sui’s Object Display.
And always test. Before you mint 1,000 NFTs, send one to a test wallet. Make sure it shows up. Make sure you can transfer it. Make sure the metadata loads. Don’t assume it works.

NFT standards aren’t just code. They’re the invisible rules that decide whether your digital asset is a treasure-or trash.

What is the main difference between ERC-721 and ERC-1155?

ERC-721 is designed for one unique token per transaction, making it ideal for individual collectibles like digital art. ERC-1155 allows multiple tokens-both fungible and non-fungible-to be transferred in a single transaction, which cuts gas fees by up to 90% and is perfect for games or apps that use many types of assets.

Why do some NFTs disappear after sending them?

This usually happens when you send an NFT to a wallet or contract that doesn’t support the token standard. ERC-721, for example, requires the recipient to implement a specific interface called tokenReceiver. If it doesn’t, the transfer fails silently, and the NFT gets stuck. Always test transfers with small amounts first.

Is ERC-721A better than ERC-721?

Yes, for most creators. ERC-721A keeps full compatibility with ERC-721 but adds batch minting, which reduces gas costs by 90% when creating multiple NFTs. It’s essentially ERC-721 with a major efficiency upgrade. Most new projects now use ERC-721A instead of the original.

Can I use an ERC-1155 NFT on OpenSea?

Yes. OpenSea supports ERC-1155 natively. In fact, many gaming NFTs and collections on OpenSea are built using ERC-1155 because of its lower fees and multi-token support. Just make sure the metadata and images are properly formatted.

Which NFT standard is the most secure?

Security depends on implementation, not just the standard. However, ERC-721’s simplicity makes it less prone to complex bugs. ERC-1155’s flexibility introduces more code complexity, which can increase risk if not audited. SIP-009 on Stacks is considered highly secure because it leverages Bitcoin’s proof-of-work security. Always use audited contracts and avoid custom code unless you’re experienced.

Do NFT standards affect resale value?

Indirectly, yes. NFTs on widely supported standards like ERC-721 and ERC-1155 are easier to sell because they work on more marketplaces. NFTs on niche standards may have limited buyers. Buyers also prefer standards with lower fees, since they can trade more often without losing money to gas.

14 Comments

  1. neil stevenson neil stevenson

    Man, I just minted my first NFT last week and thought I was a genius. Then I sent it to a wallet that didn’t support ERC-721 and poof-gone. Like, no warning, no refund, just... vanished. 😅 Thanks for the heads-up, this post saved me from a bigger disaster.

  2. Samantha bambi Samantha bambi

    It’s wild how something so technical can feel so personal. I’ve lost NFTs before, not because I was careless-but because the system itself doesn’t care if you’re confused. Standards aren’t just code; they’re gatekeepers. And right now, they’re speaking in riddles.

  3. Anthony Demarco Anthony Demarco

    Look I get it Ethereum’s the OG but why are we still clinging to ERC-721 like it’s the Ten Commandments. ERC-1155 is clearly the future. Batch minting saves money and time. Why are people still paying $180 to mint 100 NFTs when they could do it for $18. It’s not innovation it’s laziness wrapped in nostalgia

  4. Lynn S Lynn S

    It is imperative to note that the proliferation of incompatible standards constitutes a systemic risk to the integrity of digital ownership. The fragmentation of interoperability protocols is not merely an inconvenience-it is a catastrophic failure of collective foresight. One must question the wisdom of permitting such a fragmented ecosystem to persist under the guise of "innovation." Moreover, the casual dismissal of gas fees as mere "costs" reflects a profound misunderstanding of blockchain economics. The energy expenditure is not incidental-it is the price of immutability.

  5. Devon Bishop Devon Bishop

    just a heads up i think you meant "tokenReceiver" not "tokenreciever" in the part about ERC-721-i almost missed that typo and it could confuse someone new. also for anyone reading this-use OpenSea’s testnet to try sending before you go live. i lost a rare pixel cat once bc i skipped that step. lesson learned the hard way 😅

  6. sammy su sammy su

    if you’re just starting out don’t overthink it. ERC-721A is your friend. it’s still ERC-721 so everything works, but you save like 90% on gas. i minted 50 for my art project and it cost me less than a pizza. no drama no confusion. just do that and you’ll be fine

  7. Khalil Nooh Khalil Nooh

    LET ME TELL YOU SOMETHING-STANDARDS AREN’T JUST CODE, THEY’RE CULTURE. ERC-721 IS THE FOUNDATION. IT’S THE BIBLE. EVERYTHING ELSE IS A COMMENTARY. YOU THINK ERC-1155 IS BETTER? SURE. BUT DID IT BUILD THE HOUSE? NO. IT JUST ADDED A SWIMMING POOL. AND NOW WE’RE ALL ARGUING ABOUT WHETHER THE WATER’S TOO COLD. STOP CHANGING THE RULES MID-GAME. THE SYSTEM WORKS. LET IT BREATHE.

  8. jack leon jack leon

    YOOOOO I JUST MINTED 1000 NFTS WITH ERC-721A AND MY BANK ACCOUNT DIDN’T CRY. IT DIDN’T EVEN WHIMPER. IT JUST SMILED. LIKE A FREAKIN’ SUNRISE. THAT’S WHAT I’M TALKING ABOUT. THIS IS THE FUTURE AND IT’S CHEAP. AND IT’S BEAUTIFUL. THANK YOU TO THE DEV WHO BUILT THIS. YOU’RE A GOD.

  9. Norm Waldon Norm Waldon

    Let’s be brutally honest-this entire NFT ecosystem is a Ponzi scheme dressed in blockchain pajamas. ERC-721? A relic. ERC-1155? A band-aid. SIP-009? A desperate cry for legitimacy from the Bitcoin cult. And yet, you people act like you’re inventing the wheel. You’re not. You’re just repackaging digital graffiti and selling it to gullible millennials who think "on-chain" means "valuable." The only thing standardized here is the delusion.

    And don’t get me started on "eco-friendly" Tezos. You think your NFTs are green because they use less energy? That’s like calling a Prius sustainable while the whole damn car industry is burning the planet. You’re not saving the Earth-you’re just making the crime less visible.

    And who are you to say ERC-721A is "better"? Better for whom? For the artist? Or for the middleman who wants to flip your art before the metadata even loads? The standard doesn’t change the greed. It just makes it cheaper.

    Every time someone says "it’s just a token," they’re lying to themselves. It’s not a token. It’s a status symbol. A digital tattoo. A badge of belonging to a cult that doesn’t even know it’s a cult.

    And the worst part? You’re all proud of it. You post your NFTs like they’re children. You name them. You cry when they lose value. You defend them like they’re sacred. But they’re just lines of code. And someone, somewhere, is laughing at you.

    So go ahead. Mint your 721A. Buy your 1155. Send your NFT to a contract that doesn’t support it. I’ll be here, watching. Waiting. For the next wave of digital fools to come crawling back, begging for the next "revolution." P.S. If you think Bitcoin’s security makes SIP-009 "better," you’ve never actually read the Bitcoin whitepaper. It was never meant for this.

  10. Chris G Chris G

    ERC-1155 is the future no debate. Why are we even talking about this

  11. sky 168 sky 168

    Test before you mint. Always. One NFT. One wallet. One check. Simple.

  12. Phil Taylor Phil Taylor

    ERC-721 is the only standard that respects the sanctity of individual ownership. Everything else is corporate efficiency disguised as progress. You want to batch-mint 10,000 NFTs? Fine. But you’re not creating art-you’re manufacturing inventory. And you wonder why NFTs have no soul

  13. diljit singh diljit singh

    why do americans care so much about gas fees when they dont even know what blockchain is. we in india just use phone pe for everything. nft is just another crypto scam. why waste time

  14. Jack Richter Jack Richter

    meh

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