Token Protocols

A brief summary of different token protocols outlining the pros and cons of each one.

ERC-20

• Pros:

  • Can create a certain number of tokens on initiation

  • Lots of documentation

  • Very common and has widespread adoption

  • Sell multiple at a time easily

• Cons:

  • Denominations of tokens (think 1 Bitcoin can be owned by thousands of people)

  • Trades through any market or marketplace

  • Need to create a whitelist for trading

ERC-721

• Pros:

  • NFT markets are rising

  • Create a series of NFTs (Avalanche blockchain)

  • Transacts more similar to stocks because they are non-fungible

  • Once created, more tokens cannot be created on (Avalanche blockchain)

  • Cannot split tokens

• Cons:

  • With smart contracts, must use a for loop to create them

  • Harder to sell multiples, requires multiple transaction

ERC-777

• Pros:

  • Whitelisting is possible

  • Implements all features from ERC-20

• Cons:

  • Not compatible with Avalanche

  • Limited documentation

  • Not commonly known or adopted

ERC-1400

• Pros:

  • Force token transfers

  • Blends fungible and non-fungible

  • Whitelisting is possible

  • Regulate holding periods

  • KYC wallets usability

• Cons:

  • Force token transfers

  • Not widely used, not sure if ERC-1400 can be used with Solidity

  • Limited documentation

  • Not commonly known or adopted