vNFT tokens vs. ERC-20 vs. ERC-721

When you think of traditional fiat money, chances are you are thinking of the physical paper bills or the copper minted coins. While countries around the world have their own currencies throughout history, for example the Spanish Lira or the Thai Baht, the underlying “standard” of fiat money hasn’t changed much. Before paper, we had copper or bronze coins, and before that we used coins of gold and silver. But in the world of blockchain, currency — namely, token, need to be programmable in order to interact with smart contracts, which has led to the creation of multiple token standards that serve specific purposes at the time of design.

For the purpose of this article, we will be taking a close look at the ERC-20 and the ERC-721 standards, before reviewing our own vNFT token standard. While there are a multitude of other ERC tokens out there like the 777 or the 809 standard, most of the tokens we interact with are ERC-20, with a few outliers as 721.

The ERC-20 Token

To most of us, this is the standard we talk about when we discuss DeFi, or virtually anything in the Ethereum ecosystem. Almost all governance, utility, or LP tokens are issued as ERC-20 standards. The core features are its fungibility aspect, making it equivalent to a digital coin that you usually hold in your wallet. Like all fiat money, ERC-20 tokens are fungible, meaning that there are no differentiating properties that uniquely identify one from another. Due to its simplicity, the programming of ERC-20 tokens is easily learned, allowing for complex combinations, splits or other actions to be performed on it. Want to send someone 90 ERC-20 tokens in one transaction? No problem, as long as they are the same the ERC-20 token contract is perfectly adept at doing so. But what if you wanted to add non-fungible properties of information to your token? Well, then you’d have to try the 721 standard for that!

The ERC-721 Token

Unlike the ERC-20 token, the 721 standard is designed to be the opposite — in that its totally non-fungible, and cannot be re-structured. This means that if you wanted to send 90 ERC-721 tokens, you’d have to do it one by one, generating massive gas fees and wasting your time in the process. But ERC-721 tokens exist currently for the NFT market, since they allow assets to be encoded with sensitive and rare information, allowing them to be truly non-fungible.

But if you wanted a token that possessed the best of both worlds? One that can be split up, or added together, while carrying non-fungible characteristics at the same time?

Well, the good news is that we have designed a token exactly for this purpose, and it is currently known as a vNFT standard.

Just like the ERC-20, our vNFT tokens can be bundled up or divided as you want, while being able to be sent out in batch transactions like most trades currently. And yet at the same time, it carries non-fungible characteristics, turning all vNFT assets into NFTs by default. This means that any vNFT asset, such as our newly released Solv Vouchers, can be used as NFTs on open markets like OpenSea or as collateral to borrow against like on NFTfy!

Over the next couple of months, we will be releasing more info and videos on our new token standards, so make sure you are following us for the latest news on when you can try making or buying your own Solv Vouchers!

Want more #Solv related news, updates and announcements? Then follow us on Twitter or join our Telegram group!

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Solv Protocol Team

Solv Protocol Team

The DeFi platform for creating, managing, and trading Financial NFTs. https://t.me/SolvProtocol