Token Standards
Token standards are technical specifications that define how tokens (digital assets) are created, managed, and transferred on blockchain platforms, primarily Ethereum. They establish rules for token functionality, such as ownership, transferability, and interoperability, ensuring consistency across applications. Common examples include ERC-20 for fungible tokens and ERC-721 for non-fungible tokens (NFTs).
Developers should learn token standards when building decentralized applications (dApps), DeFi protocols, or NFT marketplaces on blockchains like Ethereum, as they provide a standardized way to implement tokens that are compatible with wallets and exchanges. This is crucial for ensuring security, reducing errors, and enabling seamless integration with other smart contracts and tools in the ecosystem.