# How Does ERC-1155 Achieve Cost Savings over ERC-20 and ERC-721 Combined? ▴ Learn

**Published:** 2025-11-16
**Categories:** Learn

---

## How Does ERC-1155 Achieve Cost Savings over ERC-20 and ERC-721 Combined?

ERC-1155 achieves cost savings by consolidating the logic for multiple token types into a single smart contract. Instead of deploying a new contract for every fungible or non-fungible token, one deployment is enough.

Furthermore, it supports batch operations, allowing users to transfer multiple different tokens in a single transaction, significantly reducing the cumulative gas fees compared to separate transactions.

How Does the ERC-1155 Standard Specifically Enable the SFT Structure for Financial Instruments?

What Is the Concept of a Semi-Fungible Token (ERC-1155)?

What Are the Key Differences between ERC-721 and the Newer ERC-1155 Standard?

What Is the Concept of “Fractionalization” for ERC-721 Assets?

## Discover More

- 
### [Why Was the Approve() and Transferfrom() Pattern Chosen for the ERC-20 Standard?](https://crypto.greeks.live/learn/why-was-the-approve-and-transferfrom-pattern-chosen-for-the-erc-20-standard/)
![This close-up depicts a precision-machined central spindle surrounded by a dark substrate exhibiting pie-chart-like sectors in muted teal and gold tones, speckled with particulate matter suggesting operational stress or residue from a decentralized ledger environment. The structure strongly evokes the complex mechanics underlying high-frequency trading execution mechanisms within decentralized finance DeFi infrastructure. Specifically, the segmented ring likely represents state-change indicators in a complex smart contract mechanism governing perpetual futures settlement or dynamic volatility skew adjustments integral to synthetic asset options pricing models. Key elements suggest atomic swap verification protocols or perhaps a visualization of ledger state synchronization across disparate nodes in a permissionless network, where precision controls option Greeks like Theta decay assessment in exotic derivatives. The metallic sheen and internal concentric rings hint at proprietary hardware security modules HSMs underpinning institutional crypto custody solutions required for managing large collateral pools for undercollateralized lending protocols.](https://crypto.greeks.live/wp-content/uploads/2025/10/Macro-View-of-Black-Hardware-Assembly-Featuring-Segmented-Optical-Surface-Indicative-of-On-Chain-Governance-Calibration.jpg)

It allows smart contracts to pull tokens from users, enabling automated and programmable money.

- 
### [How Does a Token Standard like ERC-20 Differ from ERC-721?](https://crypto.greeks.live/learn/how-does-a-token-standard-like-erc-20-differ-from-erc-721/)
![The visual depicts four precisely machined, diagonally intersecting components, presenting a stark aesthetic of modular connectivity against absolute blackness. This structure conceptualizes the atomic cross-chain settlement of exotic options contracts via Layer Two scaling solutions. The beige and slate blue elements suggest discrete asset blocks finalizing a complex liquidity pool interaction or a multi-signature arbitration protocol. Circular focal points within the structure imply critical execution nodes or oracle feeds verifying derivative pricing mechanisms such as Black Scholes adjusted for volatility skew in perpetual futures. This alignment visualizes immutable finality inherent in on-chain clearing of synthetic collateralized debt obligations.](https://crypto.greeks.live/wp-content/uploads/2025/10/Interlocking-Digital-Ledger-Segments-Representing-Atomic-Swap-Settlement-Mechanisms-in-Decentralized-Finance.jpg)

ERC-20 is the standard for interchangeable (fungible) tokens; ERC-721 is for unique (non-fungible) tokens (NFTs).

- 
### [What Is “Over-Collateralization” and Why Is It Common in DeFi?](https://crypto.greeks.live/learn/what-is-over-collateralization-and-why-is-it-common-in-defi/)
![This abstract composition manifests the angular convergence of segregated asset classes against a void representing market opacity. The muted tan plane suggests a static reserve, possibly representing staked assets or under-collateralized loan positions within a decentralized finance protocol, demarcated by a dark circular invariant, perhaps mirroring a core staking mechanism or a significant escrow amount. Sharp cyan planes slice through the frame, symbolizing aggressive option hedging strategies or dynamic volatility surfacing from dark pools. The interplay of deep shadows suggests risk exposure calculation, referencing intricate Black Scholes parameter estimation applied to crypto perpetual futures contracts and the inherent basis risk in synthetic asset creation. This visual dichotomy encapsulates the stringent geometric boundaries of smart contract governance versus the amorphous nature of off-exchange derivative settlements.](https://crypto.greeks.live/wp-content/uploads/2025/10/Sharp-Geometric-Projection-of-DeFi-Collateral-Pool-Dynamics-Over-Dark-Pool-Liquidity.jpg)

Posting collateral worth more than the loan/position; it's a safety buffer against crypto volatility in a trustless system.

- 
### [How Does the ‘Cost of Carry’ Affect the Pricing of Futures Contracts on a PoW Asset?](https://crypto.greeks.live/learn/how-does-the-cost-of-carry-affect-the-pricing-of-futures-contracts-on-a-pow-asset/)
![A high-contrast study focuses on a segmented device featuring beige structural elements juxtaposed against a highly polished black aperture suggestive of an interface or vault mechanism. In the background, a smooth gradient circle transitions from vibrant emerald green to deep indigo, symbolizing market volatility mapping. This visual schema conceptualizes the decomposition of a tokenized asset position requiring precise risk management analogous to managing open interest in exotic options. The contrasting textures depict the immutable ledger versus the fluid nature of delta hedging or synthetic short positioning against perpetual futures contracts. Understanding this tension is key to navigating efficient market hypothesis failures within decentralized finance yield generation strategies.](https://crypto.greeks.live/wp-content/uploads/2025/10/Abstract-Representation-of-Digital-Asset-Structure-Versus-Options-Hedging-Gamma-Exposure-Mechanisms.jpg)

The cost of financing the underlying asset until the contract's expiration, which is added to the spot price to determine the futures price.

- 
### [How Does a Trader Maintain Delta-Neutrality over Time as the Underlying Price Changes?](https://crypto.greeks.live/learn/how-does-a-trader-maintain-delta-neutrality-over-time-as-the-underlying-price-changes/)
![This abstract render depicts intersecting, highly polished, streamlined forms suggesting rapid transactional velocity against absolute zero darkness characteristic of deep market liquidity voids. The central nexus glows with an aqua luminescence reminiscent of validated ledger block timestamps or secured digital vault indicators. These overlapping, aerodynamic structures symbolize the dynamic equilibrium required in sophisticated decentralized finance DeFi option execution where managing gamma exposure and theta decay necessitates high-frequency kinetic adjustments across perpetual futures and zero-strike spreads. The visual suggests navigating complex volatility surfaces inherent in managing deep out-of-the-money OTM digital asset options contracts requiring rapid portfolio rebalancing against adverse market microstructure events, illustrating systemic risk mitigation through precise kinetic modeling of implied volatility surfaces.](https://crypto.greeks.live/wp-content/uploads/2025/10/Hyperspeed-Digital-Asset-Propulsion-System-Modeling-Complex-Option-Hedging-Vector-Flux.jpg)

Through rebalancing (dynamic hedging), which involves buying or selling the underlying asset to counteract the change in the option's Delta.

- 
### [Why Might a Business Prefer a Forward Contract over a Futures Contract?](https://crypto.greeks.live/learn/why-might-a-business-prefer-a-forward-contract-over-a-futures-contract/)
![A minimalist depiction showcases a smooth, pale blue spherical body juxtaposed against a segmented, off-white cylindrical structure, separated by a razor-thin, elongated planar element suggesting an interface or boundary. This visual metaphor articulates the precarious equilibrium required in advanced cryptocurrency portfolio hedging strategies involving highly structured financial instruments. The sphere symbolizes the underlying digital asset pool or blue-chip DeFi protocol treasury subject to volatile market dynamics, while the planar element represents a specific strike price or expiration barrier for complex derivatives. The structure below evokes the immutable, modular architecture of on-chain settlement layers or a collateralized debt position collateral structure, illustrating risk mitigation through synthetics and the delicate management of implied volatility skew inherent in deep out-of-the-money options positioning within decentralized finance mechanisms.](https://crypto.greeks.live/wp-content/uploads/2025/10/Conceptualization-of-Decentralized-Autonomous-Organization-Governance-Token-Ring-Structures-Intersecting-with-Exotic-Options-Payoff-Diagrams.jpg)

Businesses prefer forwards for their customizability, allowing them to create a perfect hedge for a specific, non-standard risk.

- 
### [What Is the Difference between ERC-20 and ERC-721 Token Standards?](https://crypto.greeks.live/learn/what-is-the-difference-between-erc-20-and-erc-721-token-standards/)
![A smooth, matte gray spheroid, resembling an uncorrelated asset, intersects a highly angular, sharp-edged blue platform featuring metallic actuation mechanisms akin to complex option strike selectors. Pale cyan stabilizers project outward indicating high directional momentum or delta hedging maneuvers across the stochastic volatility landscape. This visualization encapsulates the delicate convergence of decentralized ledger technology assets with engineered financial instruments like exotic options or perpetual futures contract structuring where precision parabolic movement dictates settlement outcomes. The stark black background emphasizes the isolation of this complex algorithmic interplay perhaps representing dark pool execution or out-of-the-money positioning within decentralized finance environments demanding superior risk parity management against market fragmentation.](https://crypto.greeks.live/wp-content/uploads/2025/10/Asymmetric-Volatility-Surface-Interaction-with-Non-Fungible-Asset-Sphere-Modeling.jpg)

ERC-20 is for identical, interchangeable tokens; ERC-721 is for unique, non-fungible tokens.

- 
### [Does the 24/7 Nature of Cryptocurrency Trading Increase the Risk of an Iceberg Order Being Detected over Time?](https://crypto.greeks.live/learn/does-the-24-7-nature-of-cryptocurrency-trading-increase-the-risk-of-an-iceberg-order-being-detected-over-time/)
![The visualization displays a mirrored, high-fidelity rendering of complex mechanical apparatus set against deep black, suggesting vacuum or non-linear space. Central components feature glowing cyan energy cores enveloped by opaque toroidal structures, evoking superconducting quantum circuit dynamics crucial for high-frequency cryptocurrency arbitrage. This conceptual design mirrors the synchronized settlement of complex financial derivatives like exotic options or structured products contingent on underlying blockchain volatility surfaces. The structure suggests dual independent nodes facilitating atomic swaps or cross-chain interoperability mechanisms fundamental to secure decentralized finance DeFi infrastructure design for managing counterparty risk exposure in perpetual futures contracts. The precise symmetry hints at perfectly hedged delta-neutral strategies essential for sophisticated market making protocols and liquidity provision across AMMs.](https://crypto.greeks.live/wp-content/uploads/2025/10/Symmetric-Quantum-Entanglement-Propulsion-Architectures-Modeling-Decentralized-Finance-Derivatives-Exchange-Execution.jpg)

Yes, the constant 24/7 trading in crypto gives detection algorithms more uninterrupted time to identify an iceberg's pattern.

- 
### [How Does ERC-1155 Achieve Gas Efficiency over Separate ERC-20 and ERC-721 Contracts?](https://crypto.greeks.live/learn/how-does-erc-1155-achieve-gas-efficiency-over-separate-erc-20-and-erc-721-contracts/)
![This visualization abstracts an opaque sphere disassembled into precisely offset, glossy, monochromatic strata suggesting intricate contract layering. The juxtaposition of high-gloss white and deep navy sections mirrors the bifurcation inherent in structured financial products like exotic options or perpetual swaps. Each offset disc represents a tranche or settlement layer within a decentralized finance vault or Automated Market Maker bonding curve mechanism. The clean, almost sterile aesthetic evokes algorithmic precision, reflecting the deterministic nature of smart contract execution and rigorous margin maintenance underpinning collateralized debt positions. Such visual segmentation can conceptually represent the Greeks decomposition embedded within complex volatility surface trading strategies essential for managing counterparty exposure in off exchange crypto derivatives markets.](https://crypto.greeks.live/wp-content/uploads/2025/10/Decentralized-Spherical-Structure-Decomposition-Revealing-Complex-Financial-Derivative-Layering-Underneath-Blockchain-Scrutiny.jpg)

It allows multiple token types to be managed in one contract and enables batch transfers, drastically cutting down on transaction fees and deployment costs.

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