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

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