> For the complete documentation index, see [llms.txt](https://docs.realium.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.realium.io/research/background/token-protocols.md).

# Token Protocols

## 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