ERC-20 vs ERC-721 vs ERC-1155: Which Token Standard Fits Your Project?

Every token on Ethereum, and on EVM-compatible chains, follows a standard. Picking the wrong one early is one of the more expensive mistakes a project can make. Here’s what actually separates the three you’ll run into most.

ERC-20: fungible, interchangeable value

ERC-20 is the standard for fungible tokens: every unit is identical and interchangeable. This is what you use for a currency, a utility token, a governance token, or a stablecoin. If your token doesn’t need individuality, ERC-20 is almost always the right call.

ERC-721: one-of-one uniqueness

ERC-721 is the NFT standard: every token has its own ID and its own metadata, and no two are interchangeable. Use it when uniqueness is the point: art, collectibles, deeds, credentials, anything where token #42 needs to be provably different from token #43.

ERC-1155: fungible and non-fungible in one contract

ERC-1155 lets a single contract manage both fungible and non-fungible token types, and batch-transfer them efficiently. It’s the standard of choice for games (stackable items plus unique ones) and marketplaces handling many token types without deploying a new contract for each.

The real cost of picking wrong

Migrating from the wrong standard after launch usually means a full contract redeployment, a token migration process for existing holders, and re-auditing everything — a multi-week, non-trivial cost. Scoping the token standard correctly before writing a line of Solidity is one of the cheapest decisions you’ll make in the whole project.

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