In the ever-expanding world of blockchain, “ERC” token standards are what make it all work smoothly. These technical blueprints define how tokens behave on Ethereum, enabling everything from cryptocurrencies to NFTs and in-game items. Let’s break down the three most widely used standards: ERC-20, ERC-721, and ERC-1155.
What Is ERC-20?
ERC-20 is the most common token standard on Ethereum. Introduced in 2015, it defines how fungible tokens operate—meaning each token is identical and interchangeable. Think of popular cryptocurrencies like USDC, LINK, or UNI—all ERC-20 tokens.
This standard includes functions like balance checks, transfers, and approvals, making it ideal for building DeFi applications and stablecoins. Its wide adoption also means easy integration with wallets, exchanges, and dApps.
What Is ERC-721?
ERC-721 was introduced in 2018 and is the backbone of the NFT (non-fungible token) boom. Unlike ERC-20, each ERC-721 token is unique, with its own ID and metadata.
This uniqueness is what makes ERC-721 perfect for digital art, collectibles, and one-of-a-kind items. CryptoKitties, one of the first NFT games, helped popularize this standard. ERC-721 gave creators and collectors a way to prove digital ownership on-chain for the first time.
What Is ERC-1155?
ERC-1155, launched by Enjin in 2019, is a hybrid that supports both fungible and non-fungible tokens within a single smart contract. It’s ideal for gaming and metaverse applications where you might need to manage large inventories of items (e.g., 1,000 gold coins and 1 unique sword).
This standard is more efficient, reducing transaction costs and enabling batch transfers—something neither ERC-20 nor ERC-721 can do well. It’s fast becoming the go-to choice for complex Web3 ecosystems.
Why Should We Be Concerned
These standards are more than just technical details—they’re the foundation of decentralized finance, digital ownership, and the evolving web3 ecosystem. Whether you’re buying crypto, minting NFTs, or building a blockchain game, understanding ERC token standards helps you navigate Ethereum’s powerful infrastructure with confidence and clarity.
