What is the difference between ERC20 and ERC721 tokens?

5 answers

• Dec 15, 2021 · 3 years ago
  ERC20 and ERC721 are both token standards on the Ethereum blockchain, but they serve different purposes. ERC20 tokens are fungible, meaning they can be exchanged on a one-to-one basis. They are commonly used for ICOs and represent ownership or value in a project. On the other hand, ERC721 tokens are non-fungible, which means each token is unique and cannot be exchanged on a one-to-one basis. They are often used for digital collectibles, gaming assets, and unique items on the blockchain.
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• Dec 15, 2021 · 3 years ago
  When it comes to ERC20 tokens, think of them as interchangeable tokens that are like coins in your wallet. You can trade them, use them for transactions, or hold them as an investment. ERC721 tokens, on the other hand, are more like rare collectibles or unique assets. Each token has its own distinct value and characteristics, making them ideal for creating and trading digital assets that have individual ownership and scarcity.
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• Dec 15, 2021 · 3 years ago
  ERC20 tokens have become the standard for most token sales and initial coin offerings (ICOs). They are widely supported by cryptocurrency exchanges and wallets, making them highly liquid and easy to trade. On the other hand, ERC721 tokens have gained popularity in the world of digital art, gaming, and virtual reality. They allow for the creation of unique digital assets that can be bought, sold, and traded in a decentralized manner.
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• Dec 15, 2021 · 3 years ago
  From a technical perspective, ERC20 tokens follow a set of rules and functions that define how they can be transferred, how the total supply is managed, and how they interact with other contracts. ERC721 tokens, on the other hand, have additional functionality that allows for the tracking of ownership and the uniqueness of each token. This makes them suitable for creating digital collectibles and unique assets that can be easily verified and authenticated.
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• Dec 15, 2021 · 3 years ago
  At BYDFi, we believe that both ERC20 and ERC721 tokens have their own unique use cases and advantages. While ERC20 tokens are more widely adopted and have a larger market, ERC721 tokens offer exciting opportunities in the world of digital collectibles and unique assets. It's important for investors and users to understand the differences between these token standards and choose the one that best suits their needs and goals.
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