Cryptocurrency Q&A
What is the difference between ERC20 and ERC721 tokens?
What is the difference between ERC20 and ERC721 tokens?
EchoWhisper
Sat Jul 20 2024
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7 answers
1457
Could you elaborate on the key differences between ERC20 and ERC721 tokens? I'm particularly interested in understanding how they differ in terms of functionality, use cases, and the way they interact with the Ethereum blockchain. For instance, how do ERC20 tokens enable fungibility, while ERC721 tokens are designed for non-fungible assets? Additionally, could you provide some examples of popular ERC20 and ERC721 tokens and explain why they chose these respective standards? This comparison would greatly assist in my understanding of the distinct characteristics of these two token types.
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7 answers
CryptoBaron
Mon Jul 22 2024
In contrast to ERC20 tokens, ERC721 tokens operate on a non-fungible basis.
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SakuraBlooming
Mon Jul 22 2024
This means that each ERC721 token represents a unique digital asset, one that cannot be substituted or exchanged for another of the same type.
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Chloe_carter_model
Mon Jul 22 2024
ERC20 tokens are characterized by their fungibility, a defining attribute that ensures each token is identical and interchangeable with any other token of the same type.
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QuasarPulse
Mon Jul 22 2024
The uniqueness of ERC721 tokens gives them immense value in the digital asset space, as they can represent ownership of rare or collectible items.
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Dario
Mon Jul 22 2024
This fungibility feature is crucial in facilitating secure exchange transactions on cryptocurrency exchanges.
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