The NFT (non-fungible token) space has evolved far beyond digital art and profile pictures. Today, startups across industries—from gaming to real estate to fashion—are harnessing NFTs to bring innovation, transparency, and unique value to their products and services. If you’re a startup looking to launch your own NFT-based platform or integrate NFTs into your business model, one of the first decisions you’ll face is choosing the right NFT token standard.
Two of the most popular standards on the Ethereum blockchain are ERC-721 and ERC-1155. But which one is right for your business?
Understanding the core differences and practical use cases can help you make a smart, future-proof decision.
Understanding the Basics
Before diving into comparisons, it’s essential to understand what these standards actually do.
ERC-721: This is the original NFT standard. It allows for the creation of unique, one-of-a-kind tokens. Each token has its own metadata and cannot be replaced by another. Think collectibles, tickets, or digital art—each item is distinguishable.
ERC-1155: This is a multi-token standard. It supports both fungible (like in-game currencies) and non-fungible tokens within the same smart contract. This means you can create multiple copies of an item (like a limited edition) or even batch transfer different types of assets in one transaction—saving gas fees and increasing efficiency.
Choosing the NFT Standard Based on Your Startup’s Use Case!
Let’s look at some real-world scenarios to help you decide which standard aligns with your startup’s needs.
1. You’re Building a Digital Art or Collectibles Marketplace
If your startup focuses on unique, 1-of-1 items—such as rare digital artworks, exclusive video clips, or autographed digital merchandise—ERC-721 might be your go-to. It’s ideal for:
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Single-item auctions
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High-value collectibles
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Projects where each NFT has its own history and provenance
ERC-721’s simplicity and widespread adoption make it great for projects that don’t need complex token structures.
2. You’re Launching a Game or Virtual World
For startups building gaming platforms, metaverse projects, or virtual assets, ERC-1155 is a strong choice. Why?
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You can create batches of similar items (e.g., 1000 swords of the same type)
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Lower gas fees thanks to batch minting and transfers
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Ability to mix fungible (gold coins) and non-fungible (unique armor) tokens
This versatility makes ERC-1155 a favorite in the gaming industry and interactive digital environments.
3. You Need Efficiency and Scalability
As a startup, you’ll want to keep development costs low and performance high. ERC-1155 is designed for efficiency. It allows for:
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Batch transactions: Mint, transfer, and burn multiple tokens in one go
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Single smart contract: Manage various token types without deploying multiple contracts
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This can significantly reduce gas fees, which adds up over time—especially as your platform scales.
4. You Want to Keep It Simple
If your use case is straightforward—like minting custom NFT memberships, digital diplomas, or tickets—ERC-721 is easier to understand, implement, and audit. The community support and documentation around ERC-721 are robust, making it a safe starting point for startups without complex needs.
Pro-Tip: Don’t Forget the User Experience!!
Regardless of the standard you choose, your end users probably won’t know (or care) whether they’re interacting with ERC-721 or ERC-1155 tokens. What they do care about is how smooth the experience is—fast transactions, low fees, and clear value.
From a backend perspective, ERC-1155 provides more flexibility and can enhance the user experience in complex applications. But ERC-721 might offer a more straightforward path when you're aiming for simplicity and uniqueness.
The Right Development Team Makes the Difference
At the end of the day, the NFT standard is just one piece of the puzzle. What really makes or breaks your NFT startup is how well your technology is executed. That’s where choosing the right NFT developement team comes in.
A skilled development team will:
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Help you assess the best token standard for your goals
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Write secure, optimized smart contracts
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Build a user-friendly frontend
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Ensure scalability and compliance
Whether you’re still sketching your product roadmap or ready to start minting, having experienced NFT developers by your side can save you time, money, and countless headaches.
Final Thoughts
The NFT world is exciting, fast-moving, and full of potential. As a startup entering this space, selecting between ERC-721 and ERC-1155 isn’t just a technical decision—it’s a strategic one. Think about your business model, your users, and how you want to scale.
ERC-721 offers simplicity and uniqueness. ERC-1155 offers power and efficiency. Both are powerful in their own ways. The key is matching the right tool to the right mission. If you’re ready to bring your NFT idea to life, now’s the time to connect with developers who understand the nuances of both standards and can help turn your vision into a working product.
Your idea is unique—just like your tokens should be. Make sure you build them right.
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