{"id":3127,"date":"2023-03-29T12:00:00","date_gmt":"2023-03-29T10:00:00","guid":{"rendered":"https:\/\/aiternalex.com\/?p=3127"},"modified":"2023-05-24T17:37:17","modified_gmt":"2023-05-24T15:37:17","slug":"blockchain-token-standards-101","status":"publish","type":"post","link":"https:\/\/aiternalex.com\/en\/blockchain-en\/blockchain-token-standards-101\/","title":{"rendered":"Blockchain Token Standards 101"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3127\" class=\"elementor elementor-3127 elementor-3118\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4817103f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4817103f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-447414cd\" data-id=\"447414cd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5e3c21ad elementor-widget elementor-widget-text-editor\" data-id=\"5e3c21ad\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.9.2 - 21-12-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<h3><span class=\"s1\">Understanding your assets in smart contract-fueled blockchain<\/span><\/h3><p>For today\u2019s Aiternalex Blog post we&#8217;re diving into the fascinating world of token standards. These standards are like rulebooks that define how tokens interact with each other and the blockchain they&#8217;re built on. In this friendly guide, we&#8217;ll explore the different token standards on the Ethereum (and EVM-compatible &#8211; Ethereum Virtual Machine) blockchain, and then briefly touch on how tokens work in other popular blockchains like Solana and Polkadot. So, grab a cup of coffee and let&#8217;s get started!<\/p><p>Ethereum and EVM-Compatible Blockchain Token Standards<\/p><p>Ethereum is a trailblazer in the blockchain space, so it&#8217;s only fitting that we start with its token standards. Here are some of the most widely used standards on the Ethereum network:<\/p><h3>ERC-20<\/h3><p>First up, we have the ERC-20, the &#8220;OG&#8221; of Ethereum token standards! This standard defines a set of rules for creating and managing fungible tokens, which are tokens with equal value (think of them as digital coins). If you&#8217;ve ever traded tokens like BAT or LINK, then you&#8217;ve dealt with ERC-20 tokens. Some key functions of the ERC-20 standard include:<\/p><ul><li>Transferring tokens between addresses<\/li><li>Checking the balance of an address<\/li><li>Approving the spending of tokens by a third party<\/li><\/ul><h3>ERC-721<\/h3><p>Next, we have the ERC-721 standard, which brought us the world of non-fungible tokens (NFTs). Unlike ERC-20 tokens, each ERC-721 token is unique, making them perfect for digital collectibles, art, and other one-of-a-kind assets. The CryptoKitties craze of 2017 was built on this standard! ERC-721 tokens have similar functions to ERC-20 tokens, but with some notable differences, such as:<\/p><p><strong>Each token has a unique identifier<\/strong><\/p><ul><li>Tokens can be transferred, but they can&#8217;t be divided<\/li><li>Metadata can be attached to describe the token&#8217;s properties<\/li><\/ul><h3>ERC-1155<\/h3><p>The ERC-1155 standard is like the Swiss Army knife of token standards! It combines the best of both worlds, allowing for the creation of both fungible and non-fungible tokens within the same contract. This versatility makes ERC-1155 perfect for gaming platforms, as it can manage in-game currencies, items, and more. Some unique features of ERC-1155 include:<\/p><ul><li>Batch transfers of multiple token types in a single transaction<\/li><li>Tokens can have both fungible and non-fungible properties<\/li><li>Reduced gas fees compared to ERC-20 and ERC-721<\/li><li>Token Standards on Other Blockchains<\/li><\/ul><p>While Ethereum is undoubtedly a leader in token standards, it&#8217;s essential to look at how tokens work in other blockchain ecosystems like Solana and Polkadot.<\/p><h3>Solana<\/h3><p>Solana is a high-performance blockchain known for its lightning-fast transactions and low fees. It uses the SPL (Solana Program Library) token standard, which is similar to Ethereum&#8217;s ERC-20 standard. SPL tokens are fungible and can be used for various purposes, like decentralized finance (DeFi) and stablecoins. Some key features of SPL tokens include:<\/p><ul><li>High transaction throughput<\/li><li>Low gas fees<\/li><li>Support for cross-chain swaps and bridges<\/li><\/ul><h3>Polkadot<\/h3><p>Polkadot&#8217;s approach to token standards is unique when compared to Ethereum or Solana. Unlike these platforms, Polkadot doesn&#8217;t have a specific, pre-defined token standard for its ecosystem. Instead, it allows individual parachains (independent blockchains) to create and implement their own token standards, providing a high degree of flexibility for projects built on the platform.<\/p><p>This flexibility stems from Polkadot&#8217;s core design, which emphasizes interoperability between various blockchains. As such, parachains are encouraged to establish their own token standards that best suit their specific use cases and requirements.<\/p><p>To facilitate seamless communication and token transfers between parachains, Polkadot employs the Cross-Chain Message Passing (XCMP) protocol. This protocol enables different parachains with their own token standards to interact and transfer tokens securely and efficiently.<\/p><p>In essence, Polkadot&#8217;s approach to token standards is centered around empowering individual parachains to create custom standards tailored to their needs. This allows for a more diverse range of token implementations and encourages innovation within the Polkadot ecosystem.<\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>For today\u2019s Aiternalex Blog post we&#8217;re diving into the fascinating world of token standards. These standards are like rulebooks that define how tokens interact with each other.<\/p>\n","protected":false},"author":5,"featured_media":3122,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[56,57],"tags":[],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/aiternalex.com\/wp-content\/uploads\/2023\/03\/blockchain-aiternalex-blog.jpg","_links":{"self":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts\/3127"}],"collection":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/comments?post=3127"}],"version-history":[{"count":11,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts\/3127\/revisions"}],"predecessor-version":[{"id":3494,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/posts\/3127\/revisions\/3494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/media\/3122"}],"wp:attachment":[{"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/media?parent=3127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/categories?post=3127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aiternalex.com\/en\/wp-json\/wp\/v2\/tags?post=3127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}