Blockchain Tokens Standards

Blockchain Tokens StandardsOverview

Blockchain token standards are structured rulebooks that define how digital tokens behave and interact on blockchain ecosystems—especially Ethereum.

1. ERC-20 (Fungible Tokens)

• What: Standard for interchangeable tokens (like digital coins).
• Use: Used in ICOs, DeFi tokens (e.g., USDT, DAI).
• Trait: Each token holds equal worth and function.

2. ERC-721 (Non-Fungible Tokens – NFTs)

• What: Defines unique digital assets.
• Use: Art, collectibles, game characters.
• Trait: Each token carries distinct identity and value.

3. ERC-1155 (Multi-Token Standard)

• What: A hybrid that supports both fungible and non-fungible tokens.
• Use: Gaming items, efficient airdrops.
• Trait: Reduces storage and transaction fees.

4. ERC-777 (Advanced Fungible Tokens)

• What: An upgraded fungible token with extra flexibility.
• Use: Allows hooks (like callbacks), operator control.
• Trait: Enables smarter and more secure transfers.

5. ERC-4626 (Tokenized Vaults)

• What: Standard for DeFi yield-bearing vaults.
• Use: Simplifies integration for developers.
• Trait: Manages deposits, withdrawals, and yield accrual uniformly.

Why Token Standards Matter

Enable wallet compatibility

Support interoperability across platforms

Reduce developer complexity

Ensure consistent behavior across apps