token standards (ERC-20, ERC-721)

Token standards like ERC-20 and ERC-721 are sets of rules that define how tokens operate on the Ethereum blockchain. ERC-20 is for fungible tokens, meaning each token is identical and interchangeable, similar to dollars or euros. This standard is used for currencies and utility tokens. ERC-721, on the other hand, is for non-fungible tokens (NFTs), which are unique and cannot be replaced, like art pieces or collectibles. These standards ensure compatibility across various platforms and applications, making it easier to create, manage, and trade different types of digital assets on the Ethereum network.