Evolution of cryptocurrency: understanding of ERC-20 and ERC-721 chips
While the world of cryptocurrency continues to grow, the Ethereum has founded the Foundation has introduced a new level of security and functionality through its standard (Ethereum for Comments). Two essential standards that have had a significant impact on the development of decentralized applications (APP) on the Ethereum blockchain are the ERC-20 and ERC-721 chips.
TOKEN ERC-20
The ERC-20 Standard TKEN is one of the most used and recognized standards in the cryptocurrency space. It allows developers to create, implement and use chips capable of representing a variety of resources, including cryptocurrencies, intelligent contracts, NFT (not working chips) and many others.
The ERC-20 chips are created by implementing an ERC-20 contract on the Ethereum blockchain. These contracts define the functionality and behavior of the token, such as the supply, transfer and storage. ERC-20 chips can be used to represent real worlds or digital goods such as:
* Cryptosarters : Like Bitcoin (BTC) or Ethereum (ETH), which can be exchanged on online shifts.
* Intelligent contracts : Car contracts -execution with the conditions written directly in the lines of code. Examples include voting systems and insurance policies.
* NFTS : unique and verifiable digital resources that can be purchased, sold and observed with origin using Blockchain technology.
The ERC-20 chips have been widely adopted in different sectors, including:
- Finance: cryptocurrencies, derivatives and stablecoins are all built in the upper part of the ERC-20 token.
- Gaming: Many game platforms, such as Opensea and raritable, use ERC-721 for their NFT collections.
- Defi (decentralized finance): many decentralized loan platforms, such as the mixture, use ERC-20 chips to represent activities.
TOKEN ERC-721
The standard of ERC-721 chips is another crucial component of the Ethereum Blockchain ecosystem. This standard allows developers to create digital collections, such as works of art or unique articles, which can be stored and exchanged on online markets as Opensea.
ERC-721 chips are created by implementing an ERC-721 contract on the Ethereum blockchain. These contracts define the functionality of the token, including its supply, transfer and conservation. Unlike the ERC-20 chips, ERC-721 chips are used to represent unique digital articles that cannot be replicated or copied. Examples of ERC-721 chip include:
* Art : unique digital works of art created using blockchain based tools as Opensea.
* Digital collections : rare articles in the game, sporting memories or other unique collections.
The ERC-721 chips have found a significant niche in the game industries and NFT, where they can be used to represent exclusive digital activities.
The main advantages of ERC standards
The adoption of ERC standards has several advantages for developers, users and the general ecosystem of Ethereum:
* Interoperability : ERC standards allow a perfect interaction between different blockchain platforms, allowing developers to create applications that can be performed on multiple networks.
* Standardization : ERC standards offer a common framework for developers to be built above the Ethereum platform, guaranteeing consistency and compatibility in several cases of use.
* Safety : using standards of safe bonds based on blockchain such as ERC-20 and ERC-721, developers can guarantee the integrity and authenticity of their chips.
Conclusion
The evolution of the cryptocurrency has led to the development of new standards, such as the ERC-20 and ERC-721 chips. These standards have had a significant impact on the growth of decentralized applications on the Ethereum platform, allowing the creation of unique digital resources that can be exchanged, archived and monitored by the origin using Blockchain technology.
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