The ERC-20 remains the golden standard for fungible tokens in the Ethereum Blockchain. The ERC-20 and ERC-721 are essential to trade in the NFT marketplace. So, let’s understand these two tokens on the Ethereum Blockchain.
What is ERC-20?
ERC-20 refers to fungible tokens on the Ethereum blockchain. More specifically, ERC-20 is the technical standard for creating fungible tokens on the Ethereum blockchain. It is a framework for how fungible tokens must be created and managed on the blockchain.
The term ERC-20 stands for “Earning Request for Comments” and the number 20 refers to the particular policy that outlines the framework or guidelines for creating these types of fungible tokens.
Difference between fungible and Non-Fungible Tokens
ERC-20 is the standard for creating fungible tokens, unlike the ERC -721 which are Non-Fungible Tokens.
Fungible tokens are nondistinguishable and divisible, while NFTs are unique and nondivisible. We can understand this better by drawing an analogy.
Think about a fungible token as a dollar coin that has the same value anywhere in the USA. So, people throughout the country use it to purchase anything worth the amount, making it nondistinguishable.
The HZM Coin, a decentralized cryptocurrency, operates on the Ethereum blockchain ERC-20 and also allows users to easily and seamlessly trade and exchange it on the decentralized platform.
On the other hand, you can think of Ethereum NFTs like ERC-721 tokens as a flight ticket. Here, the flight ticket issued in your name is nontransferable and unique because of the specific data printed on it. In other words, Non fungible tokens are unique and distinguishable.
Again, the Nemoland Kingdom on the Metaverse is built on the ERC-721 token.
How did the ERC-20 come into existence?
In the early days of cryptocurrency, anyone could create a token. However, there was one persisting problem. That is, these tokens were not interchangeable with other tokens in the marketplace. There was a pressing need to create a standard for fungible tokens that you can seamlessly trade in the crypto market. Thus, the development of ERC-20, a single framework for the creation of tokens that could easily be exchanged.
In other words, the ERC-20 guides the creation of fungible tokens so that the tokens on the Ethereum blockchain are easily interchangeable.
The HZM Coin, is a top ERC-20 decentralized token built on the Ethereum blockchain (ERC-20).
ERC-20- The Golden standard for tokens in the crypto marketplace
With the development of ERC-20, the standard for fungible tokens, developers confidently created crypto tokens. Developers were now confident that they could easily trade the tokens on decentralized platforms. They could now interchange tokens with other tokens in the marketplace.
ERC-20’s popularity paved the way for the initial coin offering boom in 2017, This boom introduced thousands of tokens and launched new ventures and projects in the crypto world.
Conclusion
Developers created the HZM coin in 2021. The iconic camel, representing a long and persistent journey, and also distinguishes the coin. Built on the Ethereum blockchain ERC-20, the coin is a safe token.
The HZM coin is a popular cryptocurrency in the DeFi marketplace. The NemoLand Kingdom built on the Metaverse also allows you to create valuable assets using the HZM coin.