Token Standard

A token standard is a technical specification that defines how tokens are created, transferred, and managed on a blockchain. Standards ensure that all tokens following the same rules are compatible with every wallet, exchange, and decentralized application on that network.

Major Ethereum Token Standards:

ERC-20 (Fungible Tokens): The most widely used standard. Every ERC-20 token implements the same functions: - `transfer()`: Send tokens to another address - `approve()`: Allow a contract to spend tokens on your behalf - `balanceOf()`: Check token balance of an address - `totalSupply()`: Total tokens in existence

This uniformity means any ERC-20 token works with MetaMask, Uniswap, and Aave without custom integration.

ERC-721 (Non-Fungible Tokens): Each token has a unique ID. Used for NFTs where every token is different (art, collectibles, real estate deeds).

ERC-1155 (Multi-Token): Supports both fungible and non-fungible tokens in one contract. Efficient for gaming where you might have unique swords (non-fungible) and gold coins (fungible) in the same system.

Standards on Other Chains:

Why Standards Matter: Without standards, every token would need custom integration with every platform. Standards create a common language that makes the entire ecosystem interoperable, allowing any new token to immediately work with existing infrastructure.