What is an ERC-20 token and what is an ERC-721 token?

There is a lot of confusion about ERC-20 tokens and ERC-721 tokens. In this blog post, we will clear up that confusion and explain the key features of each. We will also discuss the benefits of using ERC-20 tokens and ERC-721 tokens over other types of cryptocurrencies. Finally, we will give you some tips on how to get started with using these tokens in your own projects.

ERC-20 Standard

An ERC-20 token is a type of cryptocurrency that is based on the Ethereum blockchain. ERC-20 tokens are created according to a set of rules that are defined in a smart contract. These rules govern how the token can be transferred, how it can be used, and what happens when it is destroyed.

The main features of an ERC-20 token are:

  • They can be easily transferred from one person to another.
  • They can be used to represent digital assets or real-world assets.
  • They are stored on the Ethereum blockchain, which makes them secure and immutable.
  • They are compatible with a variety of Ethereum wallets and exchanges.

An ERC-20 token is a great choice for a cryptocurrency because it is easy to use and it is very secure. However, there are some drawbacks to using an ERC-20 token. For example, they are not as private as other types of cryptocurrencies.

ERC-721 Standard

ERC-721 is a token standard on Ethereum for non-fungible tokens (NFTs). Fungible means interchangeable and replaceable; Ether is fungible because any Ether can replace any other Ether. Each NFT, on the other hand, is completely unique.

If you want to know more about ERC-721 standard tokens, check out our NFT guide!

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