PERC721, ERC20, and ERC721 Tokens: Their Difference

As you embark on your journey through the Swisstronik testnet and explore the world of NFTs, it's essential to understand the various token standards available. This guide will help you grasp the differences between PERC721, ERC20, and ERC721 tokens, making it easier for you to navigate your NFT creation process and help others do the same.

What Are These Token Standards?

1. ERC20 Tokens:

   • Definition: ERC20 is a standard for fungible tokens on the Ethereum blockchain. Fungibility means that each token is interchangeable with another token of the same type—think of it like currency. For example, one dollar bill can be exchanged for another dollar bill without any loss of value.

   • Use Cases: Commonly used for cryptocurrencies, utility tokens, and governance tokens. They are perfect for projects that require a uniform asset that can be divided and traded easily.

   • Key Features:

     • Interchangeable: Each token is identical in value.

     • Divisible: You can split tokens into smaller units (e.g., 0.1 of a token).

     • Functions include transfer, approve, and balanceOf.

2. ERC721 Tokens:

   • Definition: ERC721 is a standard for non-fungible tokens (NFTs) on Ethereum. Non-fungibility means that each token is unique and cannot be exchanged on a one-to-one basis with another token—like owning an original painting versus a print.

   • Use Cases: Primarily used for digital collectibles, art, in-game assets, and unique items where ownership needs to be clearly defined.

   • Key Features:

     • Unique: Each token has distinct properties and values.

     • Indivisible: You cannot split an ERC721 token; you either own it fully or not at all.

     • Functions include mint, tokenURI, and ownerOf.

3. PERC20 Tokens:

   • Definition: PERC20 is similar to ERC20 but may refer to a specific implementation or variation of the ERC20 standard tailored for particular use cases or platforms like Swisstronik. It maintains the same fundamental principles as ERC20.

   • Use Cases: Typically used in projects that require fungible assets but may have additional features or optimizations compared to standard ERC20 tokens.

4. PERC721 Tokens:

   • Definition: Like PERC20, PERC721 refers to a specific implementation of the ERC721 standard that may be adapted for certain platforms or applications.

   • Use Cases: Used for creating unique digital assets or collectibles within specific ecosystems while adhering to the principles of non-fungibility.

Key Differences at a Glance

Why Does This Matter?

Understanding these distinctions is crucial as you create your NFTs on the Swisstronik testnet. By knowing whether to use a fungible or non-fungible token standard, you can better tailor your project to meet its goals:

• If you're developing a project that requires trading or sharing assets easily, consider using ERC20 or PERC20.

• If your goal is to create unique digital collectibles or represent ownership of distinct items, then focus on ERC721 or PERC721.

Conclusion

As you work through your tasks on the Swisstronik testnet, keep these differences in mind. Whether you're minting your first PERC721 token or exploring fungible options with PERC20, this knowledge will empower you to make informed decisions about your NFT projects. Happy minting!