Token Standards: ERC-20, ERC-721 and More
Token standards define how tokens behave on a blockchain. These standards ensure that wallets, exchanges, and smart contracts can interact with tokens in a consistent way.
🔹 Ethereum Token Standards
- ERC-20: Standard for fungible tokens (e.g., USDT, SHIB). All tokens have the same value and function like digital cash.
- ERC-721: Standard for non-fungible tokens (NFTs). Each token is unique (e.g., CryptoPunks, Bored Apes).
- ERC-1155: Multi-token standard. It supports both fungible and non-fungible tokens in a single contract — used in gaming and collectibles (e.g., Enjin, Gods Unchained).
🔹 Solana Token Standards
- SPL Tokens: The Solana equivalent of ERC-20. Used for fungible tokens like USDC on Solana.
- Metaplex NFTs: Solana’s NFT standard built on top of SPL tokens. Widely used for digital art, games, and collectibles.
🔹 Cardano Token Standards
- Native Tokens: Cardano doesn’t use smart contracts for token creation. Tokens are treated like ADA itself — this is called the Extended UTXO (EUTXO) model.
- CIP-68 (NFTs): A proposed standard for better NFT handling and metadata structuring on Cardano.
🔹 Bitcoin and Tokens
- Ordinals: Allows NFTs on Bitcoin by inscribing data on individual sats (satoshis).
- BRC-20: A new standard inspired by ERC-20 for creating fungible tokens on Bitcoin using Ordinals.
- Note: Bitcoin was not originally designed for tokens, so these features are more recent and experimental.
🔹 Other Notable Standards
- TRC-20 (Tron): Fungible token standard on Tron network.
- BEP-20 (Binance Smart Chain): Similar to ERC-20, used for tokens like CAKE, BUSD.
💡 Real-World Analogy
Think of token standards like mobile charging cables. ERC-20 is like a USB-C port — it ensures all devices can plug into the same system. Similarly, ERC-721 is like a unique cable for specific gadgets (NFTs). Each blockchain has its own plug type, but standards keep things compatible and usable across apps.
Conclusion: Token standards bring order to the crypto universe. Understanding them helps you interact safely with tokens, dApps, and NFTs across blockchains.