Tokens

In the world of blockchain technology, especially on Avalanche (AVAX), Ethereum (ETH) and other Ethereum Virtual Machine (EVM)-compatible chains, there are two primary types of tokens: fungible and non-fungible (NFT).

Fungible Token

Fungible tokens are interchangeable and possess equal value for each unit. The ERC-20 standard is the most prevalent for creating fungible tokens on the EVM-compatible blockchain. This standard facilitates the creation of tokens that have identical properties and value, making them suitable for use as digital currencies, assets, or utility tokens. ERC-20 tokens are widely used due to their simplicity and interoperability with various decentralized applications and exchanges.

Non-fungible Tokens (NFTs)

Non-fungible tokens (NFTs), on the other hand, represent unique digital assets. Each NFT has distinct characteristics that set it apart from others, making them irreplaceable and non-interchangeable. The ERC-721 standard is the most common on EVM-compatible chains for creating NFTs. This standard allows the tokenization of digital art, collectibles, and other unique items. NFTs have gained significant popularity in various sectors, including art, gaming, and digital collectibles, as they provide a way to prove ownership and authenticity of unique digital items.

Avalanche (AVAX), Ethereum and EVM-compatible chains offer robust platforms for the development and deployment of both fungible and non-fungible tokens. Their widespread adoption and established standards like ERC-20 and ERC-721 contribute to a thriving ecosystem for token-based applications and innovations.