Understanding Different Tokens of Ethereum in Simple langauge
I was confused about these tokens so I sat with mryalamanchi and 0xBhaisaab and asked them to explain it like I am a 80 year old. and they explained it.
So let me share that with you also….
First, Let’s understand Metadata.
So Meta data adds context to Image.
For Ex. If you own a painting.
Image = Your Painting
Meta Data = Subject of painting, Date painted, etc.
- Now Let’s start with ERC 20
ERC 20 token is like your penny coin, No Metadata. Every coin is identical.
2. ERC 721
Is like a painting by a famous artist, the base (Painting style) is same but the Meta data (Subject of painting, Date painted, etc.) varies for every painting.
Ex. NFT Collectibles
3. ERC 1155
Is like tickets to a Movie theatre. All tickets looks same and have identical meta data. Multiple people can own them.
Don’t confuse it with ERC 20, While they both have the identical trade they are different because 1155 enables to add meta data.
So hopefully, this gave you an idea about these tokens, Read more in depth here :