Different token standards in the blockchain ecosystem

When participating in the world of decentralized finance (DeFi) and managing digital assets, understanding token standards is essential. These standards are essentially regulations, protocols, and technical specifications that govern how digital tokens operate and interact on various blockchain platforms.

Why is it important? Because the token standard provides a framework that ensures consistency and compatibility among applications, wallets, and exchanges. Thanks to these standards, users can seamlessly use tokens across various platforms without encountering compatibility issues.

ERC-20: The most popular token standard on Ethereum

ERC-20 (Ethereum Request for Comments 20) is the most widely used token standard on the Ethereum blockchain. This is a set of rules that defines how to implement token smart contracts, allowing them to easily integrate with applications, exchanges, and wallets within the Ethereum ecosystem.

Most tokens on Ethereum adhere to this standard, from major coins to new projects. This makes ERC-20 the platform for the development of DeFi.

ERC-721: Standard for NFTs and non-fungible digital assets

Unlike ERC-20, which only supports fungible tokens, ERC-721 allows for the creation and management of unique, indivisible digital assets, known as non-fungible tokens (NFT).

This standard has opened up an entirely new field that allows for the creation and trading of exclusive digital assets, such as digital artwork, collectibles, gaming equipment, and virtual real estate. The appeal of ERC-721 lies in its ability to represent ownership and prove the authenticity of rare assets on the blockchain.

BEP-20: The main token standard of BNB Smart Chain

BEP-20 is a token standard specifically designed for the BNB Smart Chain (BSC). It serves a similar role to ERC-20 but operates within the BNB Chain ecosystem, allowing for the issuance and management of tokens that can be integrated with various decentralized applications on this network.

BEP-20 tokens are popular due to low transaction costs and fast confirmation speeds, making them the top choice for millions of users, as well as thousands of crypto projects and developers.

BEP-2: Token standard on BNB Beacon Chain

BEP-2 is a technical standard specifically for issuing and deploying tokens on the BNB Beacon Chain. It defines a set of rules that tokens must comply with in order to operate effectively within the BNB Beacon Chain ecosystem.

SPL: Token standard on Solana

SPL provides a set of rules and protocols that define how tokens operate and interact on the Solana network. Tokens that comply with the SPL standard, including the native SOL token, are compatible with Solana wallets and smart contracts on this blockchain.

Each token standard is designed to meet the specific needs of each blockchain ecosystem, ensuring stable operation and maximum compatibility for users and developers.