Understanding BEP-721
BEP-721 is a modification of Ethereum’s ERC-721, which was the first standard developed for non-fungible tokens (NFTs).
NFTs represent ownership of unique digital assets, such as collectibles or real estate, where each token holds a distinct value and cannot be exchanged for another token.
As the popularity of NFTs grew, various ecosystems emerged alongside them.
This trend has been amplified due to the high fees and long transaction processing times of the Ethereum network, which limited its functionality and rendered many DeFi protocols unusable.
Uniqueness and Ownership of Non-Fungible Objects
BEP-721 tokens are used to tokenize data ownership and assign a unique identity to each token.
This distinguishes BEP-721 tokens from other tokens, such as BEP-20.
While BEP-20 tokens can generate multiple identical tokens within a single smart contract, BEP-721 tokens assign a unique ID to each token.
They are suitable for representing specific non-fungible objects due to their uniqueness.
The “tokenMetadata” feature allows metadata to be included in a token, which can link to a piece of artwork or other collectible attributes of the NFT.
BEP-721 tokens can be traded and transferred based on their market value, determined by factors such as scarcity or usage.
Wallet Requirement and BNB Usage
Most NFT and DeFi platforms, especially those on Binance Smart Chain, require users to have a digital wallet and use cryptocurrencies to purchase these assets.
If users don’t have a digital wallet like MetaMask, they must create one to interact with BSC projects easily.
Like other Binance Smart Chain tokens, transferring BEP-721 tokens requires BNB to cover the transaction costs.
Therefore, having a small amount of BNB in your wallet is necessary for such transactions.
These tokens can represent various items, including:
- Physical or digital art
- Antiques or collectibles
- Items found in games
- Lottery tickets
- Real estate and physical property
Additionally, several fundamental ownership functions are available, some optional.
The metadata functionality is a unique characteristic of NFTs.