Discuss the difference between Token and coin, also ERC20, ERC721? in tabular format for 2 marks
Question
Discuss the difference between Token and coin, also
ERC20, ERC721? in tabular format for 2 marks
Solution
Sure, here is a tabular comparison of Tokens vs Coins and ERC20 vs ERC721:
| Tokens | Coins | |
|---|---|---|
| Definition | Tokens represent a particular asset or utility that resides on its own blockchain. | Coins are digital money that are native to their own specific blockchain. |
| Blockchain | Tokens are built and hosted on existing blockchains. | Coins have their own separate blockchains. |
| Use Cases | Tokens can represent any assets that are fungible and tradable, from commodities to loyalty points to even other cryptocurrencies. | Coins are primarily used as a form of currency. |
| Examples | ERC20 tokens, ERC721 tokens | Bitcoin, Ethereum, Ripple |
| ERC20 Tokens | ERC721 Tokens | |
|---|---|---|
| Definition | ERC20 is a standard for tokens issued on the Ethereum blockchain, used for smart contracts. | ERC721 is a standard for non-fungible tokens on the Ethereum blockchain, used for smart contracts. |
| Fungibility | ERC20 tokens are fungible, meaning each token is identical to every other token; it's interchangeable like cash. | ERC721 tokens are non-fungible, meaning each token has unique information or attributes. |
| Use Cases | Used for creating and issuing smart contract tokens for things like ICOs (Initial Coin Offerings). | Used for creating and issuing unique assets or collectibles like CryptoKitties. |
| Transferability | ERC20 tokens can be transferred from one address to another just like coins. | ERC721 allows for the "transferFrom" function, enabling users to transfer tokens directly from one address to another. |
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