Crypto Token Standards Explained: ERC-20, ERC-721, and How They Power Blockchain

When you send Bitcoin, Ethereum, or an NFT, you’re relying on crypto token standards, rules that define how digital assets are created, tracked, and exchanged on blockchains. Also known as token protocols, these standards are the invisible backbone of every wallet transaction, DeFi trade, and NFT marketplace you use. Without them, your Ethereum-based coins couldn’t move between MetaMask, Uniswap, or OpenSea—they’d just sit there, useless.

Two of the most important standards are ERC-20, the default for fungible tokens like stablecoins and utility tokens on Ethereum and ERC-721, the standard that makes each NFT unique—like a digital collectible or virtual land deed. ERC-20 tokens are interchangeable, just like dollars. If you have 10 USDT, it doesn’t matter which 10 you hold—they’re all the same. But with ERC-721, each token is one-of-a-kind, like a rare baseball card. That’s why your CryptoPunk or Bored Ape can’t be swapped for another. These standards don’t just describe data—they enable entire economies. And because they run on Ethereum, they’re directly affected by gas fees, the cost to process transactions on the network, which spikes during busy times and drops when Layer 2s like Arbitrum or zkSync take over.

Behind the scenes, these standards also tie into how you manage risk. If you’re using crypto options to hedge your holdings, you’re likely trading tokens built on ERC-20. If you’re buying an NFT from a game or virtual world, you’re interacting with ERC-721. Even saving on transaction fees—like using CHI gas tokens—depends on understanding how these standards handle data and storage. They’re not just technical specs; they’re the reason your crypto works at all.

Below, you’ll find real-world guides that break down how these standards affect your wallet, your spending, and your returns—from saving on Ethereum fees to spotting scams tied to fake tokens. Whether you’re holding Bitcoin, trading NFTs, or just trying to understand why your transaction cost jumped, these posts give you the practical side of crypto token standards—no jargon, no fluff, just what you need to know.