What are the main differences between ERC721 and ERC20 tokens in the world of cryptocurrencies?

3 answers

• Nov 29, 2021 · 3 years ago
  ERC721 and ERC20 are both token standards in the world of cryptocurrencies, but they have some fundamental differences. ERC721 tokens are unique and non-fungible, meaning each token has a distinct value and cannot be exchanged on a one-to-one basis. On the other hand, ERC20 tokens are fungible, which means they are interchangeable and can be exchanged on a one-to-one basis. This difference makes ERC721 tokens suitable for representing unique assets like collectibles or real estate, while ERC20 tokens are commonly used for utility tokens or as a medium of exchange in ICOs and decentralized applications.
  609305
• Nov 29, 2021 · 3 years ago
  When it comes to ERC721 tokens, think of them as individual pieces of art in a gallery, each with its own value and characteristics. You can't simply swap one piece for another because they are unique. ERC20 tokens, on the other hand, are like identical dollar bills - you can trade one for another without any difference in value. So, ERC721 tokens are great for representing rare items or unique assets, while ERC20 tokens are more suitable for fungible assets or currencies.
  477159
• Nov 29, 2021 · 3 years ago
  As an expert in the world of cryptocurrencies, I can tell you that ERC721 tokens have gained popularity in the realm of digital collectibles. These tokens allow for the creation and ownership of unique digital assets, such as virtual pets or in-game items. On the other hand, ERC20 tokens are widely used for ICOs and as a means of raising funds for blockchain projects. They are more standardized and easier to integrate into existing platforms. So, if you're looking to tokenize a unique asset or create a digital collectible, ERC721 is the way to go. But if you're planning an ICO or need a token for utility purposes, ERC20 is the better choice.
  649163