ERC 20 Vs. ERC 721- What Differs?

Before we look into the difference between ERC 20 and ERC 721 we need to know what Ethereum and ERC are!

Ethereum- An Introduction

Here is what Wikipedia has to say about ethereum:

Ethereum is an open-source, unrestricted, blockchain-based distributed computing platform and operating system encompassing smart contract functionality. Ethereum was projected in late 2013 by Vitalik Buterin and it was live on 30 July 2015. The value of the Ethereum currency (Ether) grew over 13,000 percent in 2017.

While decentralization is the searing topic of modern world’s technology, Ethereum is there to play its part. With ethereum, servers and clouds are replaced by thousands of "nodes" allegedly run by volunteers from around the world (thus forming a "world computer"). Ethereum is a block chain based framework that provides a platform to make distributed applications (DAPP) for crypto currencies. Ethereum has its own crypto currency “Ether” (Ether is a fundamental cryptocurrency for operation of Ethereum, which thereby provides a public distributed ledger for transactions) but it allows users to create, manage and exchange their personalized tokens. 

So What about ERC?

ERC stands for “Ethereum Request for Comments”. It basically provides functionality for Ethereum. It is a standard set of rules to create tokens on ethereum. The instructions are grounded on selling, purchasing, unit limits and existence of a token. It is therefore a proposal to adopt certain standards (while ERC 20 and ERC 721 are altered categories of proposals). These rules help exchanges, wallets and applications to understand the basic monitory functions. These documents are usually generated by developers, and they comprise of statistics about protocol specifications and contract descriptions. ERC is improved through EPI which refers to “Ethereum Improvement Proposal”. 

What are these? (ERC 20 and ERC 721)

So now when you know the basics of Ethereum and ERC, let’s have a look into what ERC 20 and ERC 721 tokens are!

ERC 20

ERC-20 specifies a common list of rules for all Ethereum tokens, which means that this token allows developers of all types to accurately predict how the new codes work within the larger Ethereum system. The ERC-20 identifies six different functions for the benefit of other codes in the Ethereum system. These are general problems with basic functions, which include how to move tokens, how tokens function and how users can access data about a token. The Ethereum community created these standards with three optional rules, and six mandatories.

Optional

·     Token Name

·     Symbol

·     Decimal (up to 18)

Mandatory

·     totalSupply

·     balanceOf

·     transfer

·     transferFrom

·     approve

·     allowance

ERC 721

This token allows the ownership of unique digital assets. Its biggest implication is Cryptokitties. ERC721, is an Ethereum Improvement Proposal (EIP), which is a proposed standard that would allow smart contracts to operate as trade-able tokens similar to ERC20. ERC721 tokens are unique in that the tokens are non-fungible. ERC721 tokens can be used in any exchange, but their value is a result of the uniqueness and rareness associated with each token. The standard defines

·     Functions name

·     Symbol

·     totalSupply

·     balanceOf

·     ownerOf

·     approve

·     takeOwnership 

·     transfer

·     tokenOfOwnerByIndex

·     tokenMetadata .

It also defines two events:

·     Transfer

·     Approval

The newly proposed ERC721 standard has opened up a gateway for new smart contracts to act as non-fungible items. It can be seen in applications like CryptoKitties, Decentraland, CryptoPunks, and many others.

The Difference!

Both ERC20 and ERC721 are different types of ERC tokens. Their prominent differences are as follows:

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