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ERC20, ERC721 tokens and NFTs: technical guide

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Token standards on Ethereum

Ethereum has token standards defining common interfaces. The most important are ERC20 and ERC721.

ERC20 (Fungible Tokens)

All tokens are identical and interchangeable. Uses: currencies, utility tokens, stablecoins, governance tokens.

Main functions

totalSupply(), balanceOf(), transfer(), approve(), and transferFrom(). Events: Transfer and Approval.

ERC721 (Non-Fungible Tokens - NFTs)

Each token is unique. Uses: digital art, collectibles, real estate, digital identity.

Metadata

tokenURI() returns JSON with image, name, description, and attributes. Stored on IPFS or Arweave.

ERC1155 (Multi Token)

Combines fungible and non-fungible in one contract. Reduces gas costs for multiple token types.

OpenZeppelin

The standard library for implementing tokens. Provides audited, secure contracts.

import "@openzeppelin/contracts/token/ERC721/ERC721.sol";

IPFS for NFTs

Store NFT metadata and media on IPFS. Use Pinata or web3.storage for persistence.

Conclusion

ERC20 and ERC721 tokens are the foundation of the blockchain economy. At Vynta we develop custom token contracts for DeFi, NFT, and tokenization projects.

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