The evolution of cryptocurrency: understanding the ERC-20 and ERC-721 tokens **

As the cryptocurrency world continues to grow, a new layer of safety and functionality was introduced by the Ethereum Foundation through its ERC (Ethereum Comment Request) standard. Two essential patterns that significantly impacted the development of decentralized applications (Dapps) on Blockchain Ethereum are ERC-20 and ERC-721 tokens.

Tokens ERC-20

The Token ERC-20 standard is one of the most commonly used and recognized patterns in the cryptocurrency space. It allows developers to create, implant, and use tokens that can represent a variety of assets, including cryptocurrencies, smart contracts, NFTs (non -fungible tokens) and more.

ERC-20 tokens are created by implementing an ERC-20 contract in the Blockchain Ethereum. These contracts define the functionality and behavior of token, such as their offer, transfer and storage. ERC-20 tokens can be used to represent real-world actives or digital goods, such as:

* Cryptocurrencies : As Bitcoin (BTC) or Ethereum (ETH), which can be negotiated on on -line exchanges.

* Smart contracts : Self-executive contracts with the terms of the contract written directly on lines of code. Examples include voting systems and insurance policies.

* NFTS : Exclusive and verifiable digital assets that can be purchased, sold and traced by provenance using blockchain technology.

ERC-20 tokens were widely adopted in various sectors, including:

  • Finance: Cryptocurrency, derivatives and stables are all built on the ERC-20 token standards.

  • Games: Many game platforms, such as Opensea and Rrible, use the ERC-721 for their NFT collections.

  • Defi (decentralized finances): Many decentralized loan platforms, such as the compound, use ERC-20 tokens to represent active.

ERC-721 tokens

The ERC-721 token standard is another crucial component of the Ethereum blockchain ecosystem. This pattern allows developers to create digital collectibles, such as works of art or unique items that can be stored and traded in on -line markets like Opensea.

ERC-721 tokens are created by the implementation of an ERC-721 contract in the Blockchain Ethereum. These contracts define Token’s functionality, including its offer, transfer and storage. Unlike ERC-20 tokens, ERC-721 tokens are used to represent exclusive digital items that cannot be replicated or copied. Examples of ERC-721 tokens include:

* ART : Exclusive digital arts created using blockchain -based tools like Opensea.

* Digital collectibles : rare items in the game, sports memoralbilia or other exclusive collectible items.

The ERC-721 tokens have found a significant niche in the game industries and NFT, where they can be used to represent exclusive digital assets.

The main benefits of ERC standards

The adoption of ERC standards has several benefits for developers, users and Ethereum’s general ecosystem:

* Interoperability

ERC Standards: Understanding ERC-20

: ERC patterns allow perfect interaction between different blockchain platforms, allowing developers to create applications that can be executed on multiple networks.

* Standardization : ERC standards provide a common structure for developers to be based on the Ethereum platform, ensuring consistency and compatibility in different cases of use.

* Security : When using safe blockchain-based token patterns such as ERC-20 and ERC-721, developers can ensure the integrity and authenticity of their tokens.

Conclusion

The evolution of cryptocurrency led to the development of new patterns, such as the ERC-20 and ERC-721 tokens. These patterns significantly impact the growth of decentralized applications on the Ethereum platform, allowing the creation of exclusive digital assets that can be negotiated, stored and traced by provenance using blockchain technology.

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