When considering tokens on the Ethereum Blockchain what is the main difference between ERC20 and ERC721 tokens?

When considering tokens on the Ethereum Blockchain what is the main difference between ERC20 and ERC721 tokens?
A . No difference on Ethereum all tokens are fungible
B . ERC20 is not fungible while ERC721 tokens are fungible
C . ERC721 is not fungible while ERC20 tokens are fungible
D . No difference on Ethernet all tokens are not fungible

View Answer

Answer: C

Explanation:

Non-fungible means unique. ERC is acronym of Ethereum Request for Comments. A standard allows for the implementation of a standard API for creating non-fungible tokens. To whom not familiar, ethereum, when launched during ICO, is using ERC-20 which ethereum coin can be broken down into smaller portion such as 0.000001. As you know, in coin, we don’t differentiate it by serial number. Government only uses “serial number” to track the note and not on coin. Hence, there is no way to distinguish or trace your coin and my coin. This behavior is same in Ethereum coin. Startup has found a way to use ERC-721 to create a unique and traceable coin in ethereum blockchain technology. This is a break through in blockchain technology.