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Technology Wallpapers > AMD > What are the differences between ERC-20 and ERc-21 tokens on Ethereum?

What are the differences between ERC-20 and ERc-21 tokens on Ethereum?

Wallpaper Description:

The key differences between ERC-20 and ERC-721 tokens on Ethereum lie in their fungibility and use cases. ERC-20 tokens are fungible, meaning each token is identical to another and can be exchanged on a one-to-one basis. This makes them suitable for use as currencies, utility tokens, or any application where uniform value is needed.

In contrast, ERC-721 tokens are non-fungible, meaning each token is unique and cannot be exchanged on an equal basis with another token. This uniqueness makes ERC-721 ideal for representing individual assets like digital collectibles, art, or real estate, commonly known as NFTs (Non-Fungible Tokens).

While both tokens are built on the Ethereum blockchain, ERC-20 is used for scenarios requiring identical, interchangeable assets, whereas ERC-721 is used for applications where each asset must be distinct and unique.
visit:https://www.bsetec.com/blog/ethereum-token-standards/