Getting started with blockchain | Three minutes to understand the difference between ERC-20 and ERC-721

We often see the word " ERC-20 " in industry media reports, a standard protocol on the Ethereum. In addition to ERC-20, another agreement that many other people on Ethereum have heard of is ERC-721 .

Although I have heard of it, many people still don't understand what these two agreements are and how they should be distinguished. Today, the vernacular blockchain will give you a good look.


What is ERC-20 and ERC-721?

First of all, simply introduce to you what is ERC-20 and ERC-721.

1, ERC-20

ERC-20 is the most widely known standard. There is no value difference in the ERC-20 standard. Tokens are interchangeable . This is equivalent to saying that under the ERC-20 standard, your 100 "money" is the same as my 100 "money".

The ERC-20 standard specifies that the Token needs to have its name, symbol, total supply, and other functions including transfer, remittance, and so on. The benefit of this standard is that as long as the Token meets the ERC-20 standard, it will be compatible with the Ethereum wallet . In other words, you can add this Token to your Ethereum wallet and send it to others via your wallet.

It is because of the existence of the ERC-20 standard that the issuance of Token becomes very simple. At present, the number of ERC-20 Tokens in Ethereum exceeds 180,000.

2, ERC-721

Since the ERC-20 is so powerful, why should we have an ERC-721 standard? The aforementioned EKER-20 standard Token has no value difference, and it is no longer applicable to some assets that need to have unique attributes (such as encrypted collections, game props).

The ERC-721 standard specifies that each Token that meets its criteria has a unique Token ID. In the ERC-721 standard, each Token is unique. In other words, under the ERC-721 standard, your 100 "money" is different from my 100 "money" because the two 100-dollar numbers are different.

02 How to distinguish between ER-20 and ERC-721?

Use an example to illustrate. If there is a virtual pet application on the blockchain, there are 100 cats in it. If the Token for this application is based on the ERC-20 standard , we happen to have a cat at the same time, then your cat is the same as my cat, and the Token is separable , such as Split into 10 copies, then each share is 0.1 Token.

If the Token for this application is based on the ERC-721 standard , then your cat and my cat will be different anyway, because our cat ID is different, and the cat as a whole is not allowed. Split and unique.

From this example, we can see two differences between the ERC-20 Token and the ERC-721 Token:

1. The Token of the ERC-20 standard is of no value distinction and is interchangeable; the Token of the ERC-721 standard is not interchangeable, and each token has a unique ID.

2. The Token of the ERC-20 standard can be divided, and the Token of the ERC-721 standard cannot be divided.

Because of the difference between the two standards, they can be applied in different scenarios. If you want to know more about Ethereum, you can refer to the tweet before the vernacular blockchain. "I know you know ERC-20, then ERC223, 721, 777, 1155."

03 Summary

Both ERC-20 and ERC-721 are standard protocols issued by Ethereum Token. Tokens issued based on the ERC-20 standard have no value difference, can be interchanged, and can be divided; Tokens issued based on the ERC-721 standard are not interchangeable, and each Token is unique, unique, and cannot be divided.

The little friends can think about it. Which standard protocol do you think game props use ? Why ? Leave your answer in the comments section.


Author | Yuxing produced | vernacular blockchain (ID: hellobtc)

『Declaration : This series of content is only for the introduction of blockchain science, and does not constitute any investment advice or advice. If there are any errors or omissions, please leave a message.