What are the key features of ERC-721 tokens and how are they different from ERC-20 tokens?

3 answers

• Dec 25, 2021 · 3 years ago
  ERC-721 tokens are a type of non-fungible token (NFT) standard on the Ethereum blockchain. Unlike ERC-20 tokens, which are fungible and can be exchanged on a one-to-one basis, ERC-721 tokens are unique and indivisible. Each ERC-721 token represents a distinct asset or item, such as a collectible or a digital asset. This uniqueness is one of the key features of ERC-721 tokens, as it allows for the creation and ownership of rare and valuable digital assets. In contrast, ERC-20 tokens are fungible and can be divided into smaller units. They are commonly used for representing cryptocurrencies or utility tokens, where each token is interchangeable with another token of the same type. ERC-20 tokens are often used for crowdfunding or creating decentralized applications (dApps) on the Ethereum blockchain. Overall, the main difference between ERC-721 and ERC-20 tokens lies in their fungibility and divisibility. ERC-721 tokens are unique and indivisible, while ERC-20 tokens are interchangeable and divisible.
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• Dec 25, 2021 · 3 years ago
  ERC-721 tokens, also known as non-fungible tokens (NFTs), have gained significant popularity in the digital art and collectibles space. Unlike ERC-20 tokens, which are commonly used for cryptocurrencies and utility tokens, ERC-721 tokens represent unique assets that cannot be replicated or divided. This uniqueness allows for the creation of rare and valuable digital assets, such as virtual land, digital art, and in-game items. On the other hand, ERC-20 tokens are fungible and can be exchanged on a one-to-one basis. They are often used for creating cryptocurrencies, utility tokens, or tokens for decentralized applications (dApps). ERC-20 tokens have a standardized format, making them easier to integrate and trade on cryptocurrency exchanges. In summary, ERC-721 tokens offer a new dimension to the world of digital assets, enabling the ownership and trading of unique and scarce items. ERC-20 tokens, on the other hand, are more suitable for representing interchangeable and divisible assets.
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• Dec 25, 2021 · 3 years ago
  ERC-721 tokens, also known as non-fungible tokens (NFTs), have gained significant attention in the digital collectibles market. These tokens are unique and indivisible, making them ideal for representing one-of-a-kind assets such as digital art, virtual real estate, and in-game items. Unlike ERC-20 tokens, which are fungible and can be exchanged on a like-for-like basis, ERC-721 tokens have distinct properties that make them stand out in the cryptocurrency space. ERC-20 tokens, on the other hand, are commonly used for representing cryptocurrencies and utility tokens. They are fungible and can be divided into smaller units, allowing for easy exchange and transfer. ERC-20 tokens have a standardized format, which makes them compatible with various wallets and exchanges. To summarize, ERC-721 tokens offer a unique way to represent and trade digital assets, while ERC-20 tokens are more suitable for fungible assets and utility tokens.
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