How Does a Token Standard like ERC-20 Fundamentally Differ from an NFT Standard like ERC-721? ▴ Learn

How Does a Token Standard like ERC-20 Fundamentally Differ from an NFT Standard like ERC-721?

ERC-20 tokens are fungible, meaning each unit is identical and interchangeable, like a dollar bill. They are typically used for cryptocurrencies or utility tokens.

ERC-721 tokens, or NFTs, are non-fungible, meaning each token is unique and cannot be directly exchanged for another. This standard is used for digital art, collectibles, and unique assets.

The smart contract code dictates this fungibility difference.

What Is the Key Advantage of a Tokenized Option Being an ERC-721 (NFT) versus an ERC-20?

What Is the Difference between ERC-20 and ERC-721 Token Standards?

What Is the Primary Difference between Fungible and Non-Fungible Tokens?

What Is a Fungible Token versus a Non-Fungible Token (NFT)?