Token Standard: ERC20, ERC721

Blockchain-defined standards that ensure consistency, interoperability, and functionality for tokens, with ERC20 for fungible and ERC721 for non-fungible tokens.

What is Token Standard?

Token standard is defined on a blockchain, typically Ethereum, to ensure consistency, interoperability, and functionality for tokens created on the network.

ERC20 (Ethereum Request for Comment 20) is the most widely adopted token standard, introduced in 2015, governing fungible tokens—interchangeable assets like USDT or governance tokens. It defines functions like transfer, balance tracking, and total supply, enabling seamless integration with wallets, exchanges, and decentralized applications (dApps).

ERC721, introduced in 2018, is the standard for non-fungible tokens (NFTs), representing unique, indivisible assets like digital art, collectibles, or tokenized real-world assets (RWAs).

These standards, built on Ethereum’s blockchain, ensure tokens are secure, interoperable, and compatible with decentralized finance (DeFi) and other ecosystems, powering billions in transactions. Other standards, like ERC1155, combine fungible and non-fungible features, but ERC20 and ERC721 remain foundational to Ethereum’s token economy.