What are the main differences between ERC-721 and ERC-20 tokens in the world of cryptocurrency?

3 answers

• Dec 16, 2021 · 3 years ago
  ERC-721 and ERC-20 tokens are both types of digital assets on the Ethereum blockchain, but they serve different purposes. ERC-721 tokens are unique and indivisible, representing ownership of a specific item or asset. On the other hand, ERC-20 tokens are fungible and divisible, representing a quantity of a specific asset. While ERC-721 tokens are commonly used for non-fungible assets like collectibles and virtual real estate, ERC-20 tokens are widely used for fungible assets like cryptocurrencies and utility tokens.
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• Dec 16, 2021 · 3 years ago
  The main difference between ERC-721 and ERC-20 tokens lies in their functionality and use cases. ERC-721 tokens are designed to enable the creation and trading of unique digital assets, allowing for ownership verification and provenance tracking. On the other hand, ERC-20 tokens are primarily used for crowdfunding, creating decentralized applications, and facilitating transactions within a specific ecosystem. Both token standards have their own advantages and are suitable for different purposes within the cryptocurrency space.
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• Dec 16, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that ERC-721 tokens have gained significant popularity in recent years due to the rise of blockchain-based games and digital collectibles. These tokens offer a unique and verifiable way to represent ownership of virtual assets, allowing for new possibilities in gaming, art, and other industries. However, it's important to note that ERC-20 tokens still dominate the cryptocurrency market, as they are widely used for fundraising, trading, and powering decentralized applications. Both token standards have their own strengths and are essential components of the evolving digital economy.
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