Breaking Down the Ethereum Token Standards

Hans Eiskonen

Whether you spend your time creating and collecting non-fungible tokens (NFTs) or you invest in cryptocurrencies - smart contracts are a major component of Web 3.0. ERC is an acronym for Ethereum Request for Comments. The purpose of this is to break down the different tokens within the Ethereum ecosystem.

ERC 20

Among the most important to understand is the ERC 20. It’s a standard interface for tokens that are fungible. Examples of ERC 20 are $Matic, $MANA, $ENJ, and more. These tokens can be used for a variety of purposes such as staking, voting, etc.

ERC 721

The ERC 721 is used for collectibles and it’s the standard interface for non-fungible tokens (NFTs). The NFT can be an art piece, song, or any other digital work. An example of the ERC 721 is the Bored Ape Yacht Club NFTs. The key element here is that it’s non-fungible so it’s not interchangeable.

ERC 777

ERC 777 is a token standard that seeks to improve upon ERC 20. It provides an advancement in the way you’re able to interact with the token.

ERC 1155

ERC 1155 is a token standard that contains both fungible and non-fungible assets. This is especially useful for NFTs that want to have multiple editions for one piece of art.

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