ERC20 vs ERC721

ERC20 and ERC721 are two different standards for creating tokens on the Ethereum blockchain.

ERC20

ERC20 is a standard for creating fungible tokens, meaning that each token is identical and interchangeable with another. They are like currency and can be used to represent assets such as a company's stock or a currency and are used in Defi.

Some examples of ERC20 tokens are:

• Binance Coin (BNB)

• Tether (USDT)

• Chainlink (LINK)

• Polkadot (DOT)

• Uniswap (UNI)

• Wrapped Bitcoin (WBTC)

ERC721

ERC721 on the other hand, is a standard for creating non-fungible tokens, (NFT) meaning each token is unique and cannot be exchanged for another token on a 1-to-1 basis. They are like collectibles and can be used to represent assets such as art, real estate, or in-game items.

Some examples of ERC721 tokens are:

• Bored Ape Yacht Club

• Doodles

• CryptoKitties

• CryptoPunks

(above Doodles collection, the famous Doodles)

In summary, the key difference between ERC20 and ERC721 is that ERC20 is for fungible tokens and ERC721 is for non-fungible tokens.