ERC stands for Ethereum Request For Comments. It is a set of rules and guidelines to be followed while creating tokens on the Ethereum blockchain. Ethereum tokens gained popularity in 2016 and 2017 as the ICOs began using them in crowdfunding. The token can be fungible, non-fungible, and semi-fungible. There are different standards for the same. Ethereum token development is the first and foremost step when it comes to launching a project based on the Ethereum blockchain. The widely used token standards are ERC20 for fungible tokens and ERC 721 for non-fungible token creation. Let us discuss the differences between the ERC20 and ERC721 token standards.
ERC20 Token Development:
ERC20 tokens are divisible. As mentioned above, ERC20 tokens are used for fungible tokens. One ERC20 token can be interchangeable with another ERC20 token. All ERC 20 tokens are of the same value. Since these are fungible, there is no specific owner for an ERC20 token like the ERC721. Crypto enthusiasts can commonly own ERC20 tokens.
ERC721 Token Development:
ERC721 is a token standard used for creating non-fungible tokens. They are unique and cannot be interchangeable. The value of an ERC721 token depends on its rarity and uniqueness. Each ERC721 token has a specific owner. ERC721 tokens are not commonly owned as they are expensive. ERC721 tokens are not divisible as they are unique.
Conclusion:
Tokens are the fundamentals of any crypto project. Whether ERC 20 token development or ERC721 token development, an Ethereum token development company will help you develop a highly efficient token that will meet your expectations. Hire one and begin your token development and let your business flourish in the world of cryptos and NFTs.
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