TOKEN STANDARDS AND ITS DIFFERENCES
If you set foot in the crypto space you will undoubtedly stumble upon tokens which are categorised as one of the three popular token standards like ERC-20, ERC-721 or ERC-1155. Depending on the chain you are on the prefix could change (e.g. BEP on BNB Smart Chain) which are extensions of Ethereum’s ERC token standards.
But what do they stand for and how do they compare?
Proposed in 2015 the ERC-20 token standard is the most common Ethereum token standard and its format is used for the creation of fungible tokens.
Fungibility defines the characteristic that each token’s value is strictly equivalent to each other. It is comparable to fiat money like two 1 dollar notes.
Its functions are defined in a smart contract that issues multiple identical token, controls its supply and monitors the token’s movement.
The most known token is Ether on the Ethereum Chain. Our Game Ace Token origins from the BNB Smart Chain and therefore is standardised in the BEP-20 token format.
Contrary to ERC-20’s fungibility, the ERC-721 token standard is non-fungible, better known as NFT.
Each NFT is not interchangeable with any other token and is completely unique (one of a kind).
It allows the ownership of data to be tokenised and attached to a unique identifier — the token ID.
ERC-721 tokens can represent digital and physical art or property, in-game collectibles and more.
The first ERC-721 based blockchain game was Cryptokitties and our AlchemyToys are this kind of NFTs as well — using the BEP-721 token standard.
This multi-token standard combines the features of the previously mentioned ones. It introduced an all-inclusive token standard that supports the creation of fungible, semi-fungible and non-fungible tokens.
It is way more optimised for mainstream games where many items may be exchanged. Its efficiency allows to trade multiple items without multiplying the amount of gas needed for the transaction because there is no need to deploy separate contracts for each (non)-fungible token.
The collection items you mint on MintedVodka are of this token standard.