Inscriptions are a unique feature of the Tezos blockchain, which allows for embedding data directly into transactions. This is different from NFTs created using ERC-721 or ERC-1155 standards on Ethereum, where metadata and other information about an asset is stored separately in smart contracts.
Inscriptions can be used to create a variety of digital assets beyond just NFTs, such as certificates, tickets, and coupons. For example, a company could issue a certificate for completing a course or attending a conference using Tezos inscriptions instead of relying on third-party services like Open Badges or Credly.
One key benefit of inscriptions is that they are more efficient than traditional NFTs created with ERC-721 and ERC-1155 standards, as they do not require the use of smart contracts for metadata storage. This can result in lower gas fees and faster transaction times on Tezos compared to Ethereum.
Another benefit is that inscriptions are more flexible than traditional NFTs, as they allow for a wider range of data types to be embedded into transactions beyond just images or videos. For example, an artist could embed audio files or text descriptions directly into their artwork using Tezos inscriptions instead of relying on external services like SoundCloud or Medium.
Overall, the use of inscriptions on Tezos offers a more streamlined and efficient way to create digital assets compared to traditional NFTs created with ERC-721 and ERC-1155 standards on Ethereum. This can result in lower costs for creators and faster transaction times for users, making it an attractive option for those looking to build decentralized applications using Tezos.
In terms of use cases that demonstrate the benefits of inscriptions, one example is a ticketing system for concerts or events. With traditional NFTs created with ERC-721 and ERC-1155 standards on Ethereum, metadata such as ticket information would be stored separately in smart contracts, which can result in higher gas fees and slower transaction times. However, using Tezos inscriptions to embed this data directly into transactions could significantly reduce costs and improve efficiency for both creators and users.
Another example is a coupon system for retailers or restaurants. With traditional NFTs created with ERC-721 and ERC-1155 standards on Ethereum, metadata such as discount codes would be stored separately in smart contracts, which can result in higher gas fees and slower transaction times. However, using Tezos inscriptions to embed this data directly into transactions could significantly reduce costs and improve efficiency for both creators and users.