What are the differences between open edition and limited edition NFTs?
Open edition NFTs permit the creation of an unlimited number of NFTs within a specific time frame, making them more accessible.
Limited edition NFTs have a predetermined number of NFTs that can be created, creating a sense of rarity.
Both types of NFTs use different smart contract standards, with open edition NFTs typically using the ERC-1155 standard and limited edition NFTs using the ERC-721 standard.
Understanding Open Edition NFTs
Open edition NFTs, a category of non-fungible tokens, permit the minting of an unlimited number of NFTs within a specific time frame. This approach aims to reach as many people as possible by lowering the price barrier and removing the cap on the number of art pieces that can be purchased within the sale window.
Open edition NFTs have unrestricted supply and distribution. There are no set limits on the number of art pieces that can be minted by the collectors. Every collector that participates in the minting event can mint as many NFTs as they wish. The rarity of the collection and its art is decided by the number of collectors who participated in the event and the amount of art they minted.
Open Edition NFTs and the ERC-1155 Multi-Token Standard
Open edition NFTs typically follow the ERC-1155 multi-token standard instead of the usual ERC-721 standard used by NFTs. The ERC-1155 smart contract standard allows the creation of ERC-20 and ERC-721 tokens in one contract. This means that when used in open edition NFT minting, the art pieces minted by the collectors are mapped to one contract, instead of developing a new contract for every mint.
What is a Limited Edition NFT?
Limited edition NFTs are characterized by their limited availability, where only a limited number of pieces are available. Once the predetermined number of NFTs are minted, any collector who was unable to mint an NFT will have to resort to the resale marketplace.
These limited edition projects often feature distinct artwork, where each NFT is algorithmically created based on a variety of attributes, ranging from expressions, clothing, accessories, and more.
Limited Edition NFTs and ERC-721 Smart Contracts
Limited edition NFTs commonly utilize the ERC-721 smart contract standard. ERC-721 describes a smart contract standard for creating non-fungible tokens, where no more than one token can be issued under its contract. Each ERC-721 token is identified by a unique ID and can be issued as a representation or real asset or as a digital signature for arts, multimedia, or intellectual properties.
The Rise of Open Edition NFTs: Are They Worth It?
Open edition NFTs have brought increased activity to the NFT market. They offer more collectors the chance to own artworks at affordable prices, although that may come at the cost of value appreciation.
However, at the moment, drops, especially those from reputable artists, are still of interest to collectors, so the interest in open edition NFTs continues.
