Understanding the Differences Between Ethereum Token Standards
Ethereum has transformed the blockchain landscape by making it possible to develop decentralized applications and custom digital tokens. One of the core reasons behind its success is the use of token standards — a set of rules and protocols that define how tokens behave on the Ethereum network. Understanding these standards is essential for developers, investors, and crypto enthusiasts alike. What Are Ethereum Token Standards? Token standards are smart contract templates that define how tokens should function on the Ethereum blockchain. These standards ensure compatibility across the Ethereum ecosystem — wallets, exchanges, dApps, and other platforms can interact with tokens seamlessly when they follow a recognized standard. Let’s explore the most popular Ethereum token standards and how they differ. ERC20 - The Standard for Fungible Tokens Among its standards, ERC20 is the most commonly used for creating fungible tokens, where each token holds the same value and can be exch...