Non-fungible tokens are different from fungible tokens or coins such as Bitcoin, Ethereum or other cryptocurrencies. To understand this in a better way, each Bitcoin is created equal and each non-fungible token is not created equal. Fungible tokens have a characteristic of having similar qualities, for example, an ether can be changed with another ether and the value is the same.
Cryptokitties was the first blockchain app or game to get widespread users. Every kitty is a non-fungible token, which means each kitty is different from another kitty and can be collected.
Decentraland lets you buy virtual land. It is non-fungible and you can buy a piece of land. Some land is expensive than another piece of land. Some users prefer to buy central land for advertising. Users can put or would want to put ads in this virtual universe when other people are spending time in this virtual universe. Each land being unique or rare has its properties and ultimately its different price.
Like ERC20, ERC721 is also an interface that defines a set of behaviors and events that the token contract can do which involves the ownership, information or movement about non-fungible items that can be a piece of land, or a kitty or other pets or any other collectible. Majority of the games on Ethereum are built of ERC 721 protocol while all ICOs are built on ERC20 protocol. In a nutshell, ERC-721 is for things or thing-like tokens
In ERC 721 you can define only 1 type of non-fungible item. For example, you can create a dog or a kitty but if you use ERC 1155, you can launch a bunch of non-fungibles in a single contract. So a better game can be built on ERC-1155.
An ERC 1155 can be used to build a whole universe of non-fungible items or characters. An example of this can be using Cryptokitties in Decentraland. So digital assets owned in one game can be used in another game.
Stay tuned for the next article on NFT (Non-fungible tokens) soon.