As graduate of Old Dominion University (BS, Physics), Virginia Tech (Msc, Software Engineering), and Harvard Extension School (Graduate Certificate, Business Communication), Ernesto has always had a passion about technology and teaching. It has been a cornerstone of Ernesto’s career.

1. ERC721 Non-Fungible Blockchain
Tokens
When Ethereum blockchain was launched, it used the ERC20 token which can
be broken down into smaller divisible units. The ERC20 is said to be fungible.
This means that Ethereum launched identical coins which can be directly
replaced with another of equal value. On the other hand, the ERC-721 is the
next generation standard which is considered by many to be a major
breakthrough in the crypto and blockchain community.
Ethereum ERC-721
Image source: Pixabay
What is this ERC-721 standard and what makes it so different from ERC20
coins that have been part of the Ethereum community for a long time? Does
the new ERC-721 standard have practical uses in the real world? This article
by Ernesto Lee takes a look at this and more.
The ERC-721 is an open source standard that allows developers to create non-
fungible tokens on the Ethereum network. Prior to the ERC-721, developers
only managed to create fungible tokens on the network.
The ERC-721 token was developed as part of Ethereum’s need to develop
applications that supported ownership and tracking of unique assets.
By the way, ERC is an acronym for Ethereum Request for Comments.
Practical examples and uses of ERC-721
Let’s start this section by looking at fiat money. In the real world, fiat money
consists of paper notes and coins. Paper notes have serial numbers and can be
easily tracked by the relevant authorities. The coins do not have serial
numbers, and therefore, cannot be tracked.
The ERC20 standard can be equated to fiat coins as it cannot be tracked. The
ERC-721 platform is like the money notes in that it has a unique token ID.

2. The first and most successful application of ERC-721 is the game known
as Cryptokitties. The platform sold collectible digital kitties. Each unit is
known as a kitty and is completely unique from the other kitties. It has its own
attributes.
Like all collectible and rare items, the price of each kitty goes up with time. In a
nutshell, the new ERC standard allows the creation of rare collectible digital
items on the Ethereum platform.
Let’s take a look at some of the practical applications of the non-fungible token:
Training and Education
A credential by definition is always attached to a unique individual. ERC20
tokens would not be valid in the use case of a Certificate, Transcript, or
College/University degree by virtue of the fact that each one is unique.
Companies such as BlockchainTrainingAlliance.com and TechBlue, Inc. have
created a platform that stores credentials on the public and private blockchain.
(In full disclosure, I am affiliated with each of those companies). When a
student passes a certification exam or attains a degree, the token is created
and ownership of the token is passed to the certificate or degree holder.
A Non-Fungible Token (NFT) or BTAT (BTA Token) can be created to digitally
track a number of credential facts such as:
 The credential attained
 Current ownership of the credential
 Expiration of the certificate
 Date certification attained
The above list of credentials are stored on the Public Ethereum blockchain.
The credential identification as well as many private details are stored on the
private HyperLedger blockchain network.
This allows the reduction of fraud, waste, and abuse by allowing anyone to
validate the authenticity of the certification or degree by checking the source on
the public Ethereum blockchain. It also allows the holder of the credential to
own their own data by giving permission to entities to get additional
information by viewing the private data on the HyperLedger blockchain
associated with the public record.
Art gallery
An art gallery is a collection of paintings. When a painting is bought, a
certificate of ownership is issued to the new buyer.

3. A Non-Fungible Token (NFT) or deed can be created to digitally track a number
of facts such as:
 The artist of the painting
 Current ownership
 Information about the painting
 Certificate of ownership
 Sales agreement
This allows artists and galleries to protect their artwork from theft and prevent
the sale of forged paintings.
Tracking diamonds
Diamonds are among the most precious stones and gemstones in the world.
Diamonds have led to conflicts mostly in developing nations. The diamonds
have been mined to fund some kind of wars or invasions.
In recent years, the major diamond and mining companies have been
developing blockchains aimed at tracking diamonds from the mine to the shop.
The non-fungible token can be used to individually track each diamond from
the mine to the shop as well in a more efficient manner.
Each diamond is unique and can be represented by a Non-Fungible Token or
deed. Each diamond can have a unique ID and certificate of ownership. This
allows buyers to see if the diamond is authentic and determine if it comes from
a conflict-free zone.
Food industry
A food product may be tracked from its production point, processing,
middlemen, and up to the store where it is sold. A Non-fungible token is
assigned to the product.
Conclusion
The ERC-721 is a new way to make digital representations of the physical
world. If you come to think of it, housing deeds can be considered to be Non-
Fungible tokens.
ERC-721 smart contracts can be created to track the ownership and sale of
housing properties. In the process, middlemen such as lawyers can be taken
off the picture resulting in cheaper and faster transactions.

4. As more developers and businesses are beginning to understand the
importance and value of the ERC-721 standard, their use is also increasing
steadily.
The Cryptokitties project should be applauded for spearheading the adoption of
the new standard which has now evolved from the beta stage to being used
extensively in the crypto sphere.
As the blockchain community continue to evolve and learn, so will the ERC-
721 protocol.
To a greater extent, the evolution from the ERC20 system to the new ERC
platform is a major boost for the crypto community.
Many new projects rely on Ethereum’s smart contracts to launch their initial
coin offerings (ICOs). The new tokenization standard can take the ICO industry
into a new direction.