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.
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:
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 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!