ERC-721 Standard

The ERC-721 standard is a technical specification for creating non-fungible tokens on the Ethereum blockchain. Unlike ERC-20 tokens, which are fungible and identical, each ERC-721 token has a unique identifier, allowing it to represent distinct assets or positions.

In Uniswap V3, this standard is used to track individual liquidity positions, as each provider chooses a unique price range and asset allocation. This allows for complex financial positions to be traded, transferred, or used as collateral in other DeFi protocols.

The standard has been instrumental in the growth of the NFT market and the tokenization of real-world assets. It provides the foundation for the programmability and composability that characterize the current state of decentralized finance.