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