What is the difference between ERC-20 and ERC-721 tokens in the cryptocurrency world?

5 answers

• Dec 16, 2021 · 3 years ago
  ERC-20 and ERC-721 are both token standards on the Ethereum blockchain, but they serve different purposes. ERC-20 tokens are fungible, meaning they can be exchanged on a one-to-one basis, just like traditional currencies. They are commonly used for ICOs and represent ownership or value in a specific project. On the other hand, ERC-721 tokens are non-fungible, which means each token is unique and cannot be exchanged on a like-for-like basis. They are often used for representing ownership of digital assets, such as collectibles, virtual real estate, or in-game items.
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• Dec 16, 2021 · 3 years ago
  The main difference between ERC-20 and ERC-721 tokens lies in their design and functionality. ERC-20 tokens follow a standard set of rules, allowing for easy integration and compatibility with various platforms and wallets. They are highly liquid and can be traded on exchanges. In contrast, ERC-721 tokens have more complex smart contracts, as each token has its own unique identifier. This uniqueness enables the creation and trading of rare and valuable digital assets. While ERC-20 tokens are more widely adopted, ERC-721 tokens have gained popularity in the world of digital collectibles and gaming.
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• Dec 16, 2021 · 3 years ago
  From a technical perspective, ERC-20 tokens have a standard set of functions, including transferring tokens, checking balances, and approving token transfers. ERC-721 tokens, on the other hand, have additional functions that allow for the ownership and transfer of unique assets. These functions include the ability to query the owner of a specific token and the ability to transfer ownership of a token from one address to another. These added functionalities make ERC-721 tokens suitable for applications that require unique, indivisible assets.
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• Dec 16, 2021 · 3 years ago
  In the cryptocurrency world, ERC-20 tokens are like the dollar bills in your wallet - each bill is the same and can be exchanged for another bill of the same value. ERC-721 tokens, on the other hand, are like rare collector's items - each item is unique and holds a different value. While ERC-20 tokens are great for representing currencies or shares in a project, ERC-721 tokens are perfect for representing one-of-a-kind assets, like virtual pets or digital art. So, whether you're looking for uniformity or uniqueness, there's a token standard for you in the crypto world!
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• Dec 16, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that both ERC-20 and ERC-721 tokens have their own advantages and use cases. ERC-20 tokens are widely adopted and have a strong presence in the market. They are highly liquid and can be easily traded on various exchanges. On the other hand, ERC-721 tokens offer a new dimension to the world of digital assets. They allow for the creation and trading of unique, non-fungible items, which opens up exciting possibilities for digital collectibles, gaming, and virtual reality experiences. Both token standards have their place in the crypto ecosystem and cater to different needs and preferences.
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