The future of smart contracts is called ERC721 tokens
Security

The future of smart contracts is called ERC721 tokens

By Fabio Lugano - 20 Jun 2018

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The new ERC721 tokens provide copyright protection for works of art or professional activities. They can also be used in other fields, such as real estate

The future of smart contracts is called ERC721 tokens: Leggi qui l’articolo in Italiano

The birth of the web in the eighties also marked the birth of a problem related to the protection of copyright and therefore the recognition of the creator.

Since then, those who created a program risked seeing it copied, modified, sometimes even used for purposes other than the original.

Often, the creator of a software was not only not remunerated for the use, but also his intellectual property was not recognized.

The blockchain has made it possible to overcome this problem with a widespread, but trustless, system of sharing ideas and verification through private and public keys.

Ethereum contracts can carry large amounts of data, but ERC20 contracts (ERC stands for Ethereum Request for Comment) were created to exchange fungible goods, i.e. all identical to each other.

This is ideal if the function is to represent a value, as with cryptocurrencies, but is unsuitable to represent objects that are different from each other.

This is when the ERC721 tokens were born, created by Dieter Shirley of Axiom Zen.

This type of contract is designed to contain non-fungible information or unique information objects. A bit like two flowers that, although similar, are different from each other.

The first experimental use was the notorious Cryptokitties: the contract contains the specific information of each individual computer puppy, each different from the other.

It was just an experiment but now many possibilities are open.

In fact, ERC721 is excellent for protecting the copyright of artistic or professional works: an artist or a professional will be able to have the property recognized at any time. There are even more interesting applications, such as the registration of real estate contracts and their transfer.

For example, in countries such as Australia where the transfer of the registered contract means the transfer of the asset itself, there is the possibility of buying and selling real estate through a simple smart contract that identifies the registrations and qualities of the individual property.

Source: https://coincentral.com/future-of-erc-721-and-unique-assets/

Fabio Lugano
Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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