Introduction to Tokens

the first thing we need to Define is what is a token a token is a digital asset that represents any other asset on a digital Ledger for example we can represent a car a trade title Deeds or even energy in general we can identify two types of tokens what we call fungible tokens and non-fungible tokens that are mostly known as nft fungible tokens are tokens that have the following characteristics they are not unique they are divisible and they can also be interchangeable for example the USD coin is a fungible token contrary to fungible tokens non-fungible tokens are unique and they cannot be divided a well-known example of non-fungible tokens is cryptokitties now as good in any industry standards are required in order to have interoperability for instance wallet providers would need to know how to list the different types of tokens in their wallets for that reason the community have created token standards the erc20 was the first standard for fungible tokens we will go into more details when we create our compliant token in the next chapter the same case for non-fungible tokens the ERC 721 is the standard for them we will create our own ERC 721 token in the coding section for the moment keep in mind that non-fungible tokens also have a standard token implementation in addition to those standards the ERC 777 is also a standard for fungible tokens this standard was developed in order to improve the erc20 since it allows more complex interactions one of its main features is the capability to create hooks which means that accounts and contract can react to receiving tokens we will Explore More its capabilities when we create our ERC 777