11 February 2023
Ethereum is one of the most popular blockchain platforms in the world, and it is widely used for creating decentralized applications (dapps) and digital assets. Ethereum uses token standards to govern the creation, management, and transfer of tokens within its network. Token standards serve as the building blocks of decentralized applications, providing a consistent and predictable framework for token interactions.
In this article, we will take a closer look at the different Ethereum token standards and the features that make them unique.
The Ethereum Token Standard (ERC-20) is the most widely used token standard in the Ethereum ecosystem. It was created in 2015 and has since become the de facto standard for initial coin offerings (ICOs) and other token-based projects. ERC-20 tokens are easy to create, manage, and transfer, making them ideal for use in decentralized applications.
Features: *Easy to create and manage tokens *Compatibility with Ethereum-based decentralized exchanges (DEXs) *Widely supported by Ethereum wallets and dapps
The Ethereum Token Standard (ERC-721) is a non-fungible token (NFT) standard that was created to enable the creation of unique digital assets on the Ethereum blockchain. Unlike ERC-20 tokens, which are fungible and interchangeable, ERC-721 tokens are unique and cannot be replicated or divided. ERC-721 tokens are ideal for use in decentralized applications that require unique assets, such as collectables, gaming items, and digital real estate.
The Ethereum Token Standard (ERC-1155) is a hybrid token standard that was created to enable the creation of both fungible and non-fungible tokens on the Ethereum blockchain.
ERC-1155 tokens can be used to create both interchangeable and unique digital assets, making them ideal for use in decentralized applications that require both types of assets.
A feature that allows the owner of an NFT to destroy or "burn" their token
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