As an amateur user I was always confused about all these ERC* tokens. I knew only ERC20 standard and could not understand why we need to make all these crypto things so complicated. And yes, I was Dummy.

So I tried to dig deeper and started studying all these complicated pieces of information. And now I want to help such people as myself to learn something new and save some time.

ERC20 - is specifically a fungible, smart contract enabled token that can easily be developed by a third party. There are a lot of such tokens and a lots of people owe them. If you have 1 ERC20 token and your friend has 1 ERC20 token and you make an exchange - nothing will happen. You will be the same proud owner of 1 ERC20 token.

The reliability and flexibility offered by ERC20 help it slowly but steadily grow to engulf most of the market.

ERC721 - is a unique non-fungible token. A non-fungible token allows for assigning an immutable identification to a non-physical object.

Remember Crypto Kitties? Yes, your cute kitty is ERC721. It is unique. It has unique price. If you ever make an exchange with your friend you will get another object. Nobody has the same kitty as yours.

Users appreciate the transparent collectible creation system and invest accordingly.

ERC1155 - allows to assign items (ERC721) to a class.

Items that are identical in game can be combined as a fungible asset, while still allowing unique items to be traded on their own.

I hope this information helped you to understand ERC tokens better.

P.S.

I’m still Dummy and I’m ok with it =)

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