Token standards form the foundational rules governing how crypto tokens operate on blockchain networks. Whether fungible or non-fungible, these standards ensure interoperability, functionality, and security. This guide explores major token standards like ERC-20, ERC-721, ERC-777, and ERC-1155, along with their applications across Ethereum and other blockchains.
Key Takeaways
- ERC-20: The dominant standard for fungible tokens (e.g., stablecoins, utility tokens).
- ERC-721: Powers non-fungible tokens (NFTs), enabling unique digital assets.
- ERC-777: Enhances ERC-20 with hooks for efficient smart contract interactions.
- ERC-1155: A multi-token standard supporting both fungible and non-fungible assets.
- Cross-chain standards exist for EOS, NEO, and Tezos, each with unique protocols.
What Are Token Standards?
Token standards are smart contract rules defining how tokens behave on a blockchain. They specify:
- Token creation and issuance.
- Transfer mechanisms.
- Ownership tracking.
These standards ensure compatibility across wallets, exchanges, and dApps. Ethereum’s ERC (Ethereum Request for Comment) series dominates the ecosystem, but other blockchains like EOS and Tezos have their own frameworks.
👉 Discover how ERC-20 tokens power DeFi ecosystems
Common Ethereum Token Standards
1. ERC-20: Fungible Tokens
Features:
- TotalSupply: Tracks total tokens in circulation.
- Transfer: Allows token movements between wallets.
- Approve: Grants third-party spending limits.
Use Cases:
- Stablecoins (DAI, USDT).
- Utility tokens (BAT, LINK).
2. ERC-721: Non-Fungible Tokens (NFTs)
Features:
- Unique token IDs.
- Indivisible ownership.
Use Cases:
- Digital art (CryptoPunks).
- Virtual real estate (Decentraland).
3. ERC-777: Advanced Fungible Tokens
Improvements over ERC-20:
- Hooks: Notify contracts during transfers.
- Blacklist functionality.
4. ERC-1155: Multi-Token Standard
Advantages:
- Batch transfers reduce gas fees.
- Supports both fungible and non-fungible assets.
Token Standards Beyond Ethereum
| Blockchain | Standard | Key Feature |
|------------|---------------|---------------------------------|
| EOS | eosio.token | Issues native EOS tokens. |
| NEO | NEP-5/NEP-17 | Generalizes token interactions. |
| Tezos | TZIP-7/12 | Unified interface for assets. |
👉 Explore Tezos' TZIP-12 for multi-asset contracts
FAQs
Q: Can ERC-20 and ERC-721 tokens interact?
A: No—they serve different purposes (fungible vs. non-fungible).
Q: Why is ERC-1155 more efficient?
A: It bundles transactions, cutting gas costs by 90% in some cases.
Q: Are token standards blockchain-specific?
A: Yes. Ethereum uses ERC; Tezos uses TZIP.
Conclusion
Token standards are the backbone of blockchain tokenization. From DeFi (ERC-20) to NFTs (ERC-721) and multi-token systems (ERC-1155), they enable diverse use cases while ensuring network compatibility. As blockchains evolve, expect more versatile standards to emerge.
Further Reading:
### SEO Notes:
- **Keywords**: Token standards, ERC-20, ERC-721, NFTs, smart contracts, Ethereum, Tezos.