Token standards are the set of rules that allows the development of crypto tokens on different blockchain protocols. These standards are built for smart contracts and other Decentralized Applications. There are several token standards in the Ethereum Blockchain. They are ERC20, ERC1400, ERC223, ERC621, ERC721, and ERC1155. Now, we can have a look into the most familiar and demanding token standards of Ethereum - ERC20 and ERC721.
ERC20 Token Standard
“Ethereum Request for comment” commonly known as ERC is the standard for developing tokens in the Ethereum blockchain. ERC20 is the fungible token standard that provides basic functionality to transfer tokens. It has emerged as the technological standard for token implementation on the Ethereum blockchain and it is used for all smart contracts on the Ethereum blockchain. It has a set of guidelines that all Ethereum tokens must adhere to. ERC20 is the simple standard that allows for the creation of tokens on Ethereum that can be reused by other applications like Defi.
ERC721 Token Standard
ERC 721 is the token standard that defines Non-Fungible Tokens(NFT’s) on the Ethereum blockchain. They are a special type of cryptographic token, which cannot be interchanged for any reason. The ERC-721 standard is widely used for tokenizing unique individual objects and properties in collectibles and crypto games. It has basic features for transferring and tracking NFT ownership.
Now, you might have got an idea about the important Ethereum token standards. These two tokens ERC20 & ERC721 are currently highly efficient in the crypto ecosystem. These unique features of each ERC token standard work as a benefit for enterprises today. If you wish to create ERC20 token for your crypto business, you can connect with the finest ERC20 token development company because they will have a group of blockchain engineers to create crypto tokens in a hassle-free manner as per your business requirements.