Comparison of ERC20 vs ERC721 vs ERC1155

Ethereum created a strong base for crypto tokens that are now used in business and daily trade in many parts of the world. The structure of Ethereum allowed the use of different standards that define how tokens work. These standards make the process easy for developers and businesses because the rules are already fixed. Each standard has a role that is not the same as the others. A crypto token development company can give guidance for each one as per business needs. This blog explains the ERC standards in detail.

Types Of Tokens

Fungible Tokens

Fungible tokens are digital units that stay equal in price and utility, where one unit can be replaced with another unit without a change in meaning. The usage of fungible tokens is common in cryptocurrencies, where every coin or token keeps the same measurable worth.

Non-Fungible Tokens

Non-fungible tokens are digital items that hold unique properties where no unit can be exchanged as equal to another unit. The presence of non-fungible tokens is often seen in artworks, gaming assets, etc.

Semi-Fungible Tokens

These tokens are digital assets that first act like fungible items in the trading process, but later they change into non-fungible items after usage. The structure is applied in tickets, coupons, and event passes, where one phase stays equal while another phase stays unique.

What Is ERC?

ERC is a technical rule implemented in Ethereum that gives standards for tokens and smart contracts that work inside the blockchain. It is used as a guide so developers can make applications and tokens that run properly across the Ethereum network.

What Is ERC20?

ERC20 is the most common token standard. The letters mean Ethereum Request for Comment, and the number 20 shows the proposal code. ERC20 tokens are called fungible tokens. Fungible means that every unit is the same in quality and value. One ERC20 token can be replaced with another without any difference. This quality makes them good for digital money, stablecoins, and utility tokens. Businesses that create ERC20 tokens follow some fixed rules. The rules include transfer between addresses, balance checking, and allowance functions. These rules are simple and easy to use for an ERC20 token development company. When people think about creating an ERC20 token, they usually want to make a currency or token that can be used for payments, loyalty points, or other exchanges. ERC20 has been around since 2015 and has gained a wide level of adoption. Popular tokens such as USDT, USDC, and many more are built on the ERC20 standard. The base of DeFi projects and many ICOs in the past also came by creating an ERC20 token.

What Is ERC721?

It came after ERC20, and it was made to support non-fungible tokens. ERC721 gained fame with NFTs used for art, games, tickets, and collectibles. ERC721 tokens follow a different set of rules compared to creating an ERC20 token. Each token has a unique ID and metadata. Metadata contains information that defines what the token represents. A token in ERC721 can show ownership of a digital painting or land in a game or a certificate in digital form. ERC721 created a new market in the blockchain world. Collectibles like CryptoKitties showed the power of ERC721. Later, many NFT projects on marketplaces like OpenSea gained success using ERC721. Businesses that want to issue digital assets in unique forms usually depend on crypto token development services with the ERC721 standard.

What Is ERC1155?

It is a newer standard. This solves some of the limitations of ERC20 and ERC721. ERC1155 has functions that enable batch transfers. A person can send many tokens in one transaction, which saves gas fees. It is useful for gaming platforms where players need both fungible in-game currency and non-fungible game items. With ERC1155, both needs can be handled together. The ERC1155 standard also improves safety features.

Key Comparison Table

Why Do Businesses Choose ERC20?

Businesses choose to create ERC20 tokens because of trust, acceptance, and ease. Creating an ERC20 token is easier compared to others because there are many tools available. An ERC20 token development company can create ERC20 tokens and related projects quickly with tested solutions. ERC20 tokens get listed on exchanges faster. Wallets and DeFi platforms already support them. This helps in growing liquidity and the user base. For many entrepreneurs, the first choice is to create ERC20 tokens because of their wide recognition.

Why Do Businesses Choose ERC721?

ERC721 is chosen when uniqueness is the main value. Artists, musicians, and gaming companies look for ERC721 because it can protect ownership of their digital assets. The token is linked to an item in a way that cannot be copied. Businesses that want to join NFT markets often ask for crypto token development services with ERC721. These crypto token development services help in creating contracts, designing metadata, and connecting the token with blockchain marketplaces.

Why Do Businesses Choose ERC1155?

ERC1155 is chosen when the project demands efficiency in handling multiple asset types. Gaming projects and platforms that manage collections of assets look for ERC1155. A crypto token development company that knows ERC1155 can create contracts that lower costs and increase speed. Batch transfer is another reason. A game with thousands of items cannot work smoothly with only ERC721. ERC1155 makes it possible to send many tokens in one move, which saves resources.

Future Of ERC Standards

ERC20 will continue to remain as the backbone of crypto finance. Stablecoins, governance tokens, and DeFi projects will use ERC20 for years. A crypto token development company will always keep ERC20 token services active because demand will not fall. ERC721 will keep growing with art games and collectibles. The trend of digital ownership is not ending, and more creators will need ERC721 support. ERC1155 will rise with metaverse games and mixed asset projects. As blockchain moves to wider gaming and enterprise-level use, ERC1155 will become more important.

Choosing The Right Standard

The choice depends on project needs. For simple currency-type assets, ERC20 is best. For unique assets, ERC721 is best. For projects needing both ERC1155, it is best. A crypto token development company can give correct advice after looking at the project goals. Many startups think about creating an ERC20 token for easy entry, but as they grow, they may need ERC721 or ERC1155 for wider crypto token development services.

Role Of Crypto Token Development Companies

An ERC20 token development company can provide crypto token development services, supporting businesses with design creation and testing of tokens. These companies help in setting up contracts, auditing wallets, and exchange listings. They provide full services from creating an ERC20 token to building ERC721 or ERC1155 related platforms. Many firms focus only on one standard, but experienced companies provide support for all. They guide on how to manage gas fees, how to create contracts without security risks, and how to link tokens with platforms. Choosing the right crypto token development company is an important decision for success in blockchain projects.

Conclusion

ERC20, ERC721, and ERC1155 have their own roles. ERC20 is for equal tokens, ERC721 is for unique assets, and ERC1155 is for both in one place. Businesses must decide based on project goals. Stablecoins, DeFi projects, and payment tokens often go with ERC20. NFT art games and collectibles go with ERC721. Games and platforms that require mixed tokens go with ERC1155. Addus is a reputed crypto token development company that provides all the needed services from planning to launch. Our Crypto token development services support entrepreneurs and enterprises with safe and scalable token solutions. Contact our experts today to explore future projects that meet ERC standards, ensuring your business remains strong and profitable.