ERC token standards

ERC tokens are simply digital assets created on the Ethereum network that follow agreed rules so different tools can read and move them, and the simplest way to see the difference is this: a coin lives on its own blockchain, while a token lives on another chain and borrows its infrastructure. Ethereum itself has a native coin used to pay for computing called gas, and every token on Ethereum still needs that gas to change hands or to run a smart contract. The rules that tokens follow are born from community proposals called EIPs, and the token-specific subset of those proposals are called ERCs, with the numbers merely serving as proposal serials. The most common token standards are ERC‑20, ERC‑721, and ERC‑1155, and each solves a different problem. ERC‑20 defines fungible tokens where units are interchangeable, so one unit equals another and these are perfect for in-app currencies and protocol tokens; the standard creates predictable functions like balance checks and transfers so wallets and exchanges can interoperate. ERC‑721 defines non‑fungible tokens and gives each item a unique identifier plus links to metadata, which makes it ideal for digital art, collectibles, or any asset that must prove uniqueness and provenance on the ledger. ERC‑1155 is a pragmatic blend that lets a single smart contract handle many token types at once, including fungible, non‑fungible, and semi‑fungible items, and it supports batch transfers to save on operations and simplify game economies or platforms that need many asset varieties. Standards do more than organize; they create interoperability, so wallets, markets, and tools can trust a token will behave in known ways, and they reduce friction for creators and users. Tokens are represented by a contract address and by token IDs where applicable, and ownership and history are recorded immutably on the chain so provenance can be audited like brass gears in a clockwork ledger. Developers still must design securely, follow the standard closely, and often have contracts reviewed because mistakes can be permanent. In short, ERC tokens are the instruction set that lets a huge variety of digital assets live and move on Ethereum, opening space for currencies, games, art, and new forms of online value without inventing a new blockchain for every idea.