Token standard

A token standard establishes a set of guidelines and specifications that govern the behavior of a specific type of digital asset, referred to as a token, within a blockchain network. These standards ensure seamless interoperability, compatibility, and consistency across various tokens and blockchain platforms.

By providing a structured framework for token creation, transfer, ownership, and interaction with smart contracts, token standards define the essential functionalities, interfaces, and behaviors that tokens must adhere to. This framework empowers developers to build decentralized applications (DApps) and other blockchain-based solutions using a shared set of rules.

• The ERC-20 standard is widely recognized as the most prominent token standard, initially introduced on the Ethereum blockchain. ERC-20 tokens possess fungibility, meaning they are identical and interchangeable with one another. This standard has played a pivotal role in facilitating the proliferation of Initial Coin Offerings (ICOs) and fueling the growth of decentralized finance (DeFi) applications.
• Another notable token standard is ERC-721, also known as the Non-Fungible Token (NFT) standard. In contrast to ERC-20 tokens, ERC-721 tokens represent unique and indivisible assets or collectibles.