Cryptocurrency Q&A
What is ERC-20 vs ERC 721?
What is ERC-20 vs ERC 721?
NebulaNavigator
Tue May 14 2024
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7 answers
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Could you please elaborate on the difference between ERC-20 and ERC-721? I'm particularly interested in understanding their unique characteristics and functionalities within the cryptocurrency ecosystem. ERC-20 seems to be a widely recognized standard, so I'm curious about its interchangeability and compatibility with Ethereum wallets. On the other hand, ERC-721 appears to focus on non-fungible tokens. Could you explain how the uniqueness and individuality of ERC-721 tokens contribute to their value and usage in various applications like digital art and gaming? Additionally, I'd like to know how these standards facilitate the creation and management of tokens on the Ethereum blockchain. Thank you for clarifying these distinctions for me.
7 answers
TimeRippleOcean
Thu May 16 2024
ERC20 and ERC721 tokens differ primarily in their fungibility aspect. Fungibility refers to the interchangeability of assets, where one unit can be easily replaced by another of equal value.
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Carolina
Wed May 15 2024
Another key difference between ERC20 and ERC721 tokens is their divisibility. ERC20 tokens can be divided into smaller units, allowing for fractional ownership and more flexible trading options.
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GliderPulse
Wed May 15 2024
However, ERC721 tokens cannot be divided. They exist as whole units, preserving their uniqueness and integrity, which is crucial for representing individual assets.
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CryptoWizardry
Wed May 15 2024
ERC20 tokens are fungible, meaning they represent a uniform asset that can be traded or exchanged for another ERC20 token of the same type without any loss of value.
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CharmedSun
Wed May 15 2024
In contrast, ERC721 tokens are non-fungible. This means each ERC721 token is unique and cannot be replaced by another token of the same type without altering its inherent value or characteristics.
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