What are the key differences between ERC-20 and ERC-721 token standards?

3 answers

• Dec 14, 2021 · 3 years ago
  ERC-20 and ERC-721 are both token standards used in the world of cryptocurrencies. The main difference between them lies in their purpose and functionality. ERC-20 tokens are fungible, meaning that each token is interchangeable and holds the same value as any other token of the same type. On the other hand, ERC-721 tokens are non-fungible, which means that each token is unique and holds a distinct value. This makes ERC-721 tokens ideal for representing ownership of assets, such as digital collectibles or real estate, where each token represents a specific item or property. In contrast, ERC-20 tokens are commonly used for utility tokens, representing a unit of value within a decentralized application or platform. Overall, the key difference between ERC-20 and ERC-721 lies in their fungibility and intended use cases.
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• Dec 14, 2021 · 3 years ago
  When it comes to ERC-20 and ERC-721 token standards, the main difference can be summarized as follows: ERC-20 tokens are like coins in your pocket, where each coin has the same value and can be exchanged for another coin of the same value. On the other hand, ERC-721 tokens are like unique pieces of artwork, where each piece holds its own value and cannot be exchanged for another piece. This distinction is important because it determines how these tokens are used in the cryptocurrency ecosystem. ERC-20 tokens are commonly used for ICOs, airdrops, and as utility tokens within decentralized applications. On the other hand, ERC-721 tokens are used for non-fungible assets, such as digital collectibles, virtual real estate, and unique in-game items. So, while ERC-20 tokens are more like traditional currencies, ERC-721 tokens are more like digital assets with unique characteristics.
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• Dec 14, 2021 · 3 years ago
  As an expert in the field of cryptocurrencies, I can tell you that the key differences between ERC-20 and ERC-721 token standards are quite significant. ERC-20 tokens are fungible, meaning that each token is the same as any other token of the same type. This makes them ideal for representing currencies or utility tokens within decentralized applications. On the other hand, ERC-721 tokens are non-fungible, meaning that each token is unique and holds a distinct value. This makes them perfect for representing ownership of assets, such as digital collectibles or real estate, where each token represents a specific item or property. It's important to understand these differences when considering the use cases and applications of these token standards in the world of cryptocurrencies.
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