Tokens and NFTs: ERC-20, ERC-721, ERC-1155, Utility Design, and Tokenomics
Understand how blockchain assets are standardized, represented, and designed for real products and digital economies.
Inside this chapter
- Fungible Tokens and NFT Basics
- Important Token Standards
- Simple ERC-20 Example
- Tokenomics and Real Product Thinking
Series navigation
Study the chapters in order for the smoothest path from beginner blockchain concepts to advanced architecture and production practices. Use the navigation at the bottom of each page to move chapter by chapter.
Fungible Tokens and NFT Basics
Fungible tokens are interchangeable units such as payment tokens, governance tokens, or reward points. NFTs represent unique items such as collectibles, tickets, certificates, or game assets. Both are usually implemented using token standards so wallets, marketplaces, and applications can interact with them consistently.
Important Token Standards
ERC-20for fungible token balances and transfersERC-721for unique non-fungible assetsERC-1155for flexible multi-token contracts supporting both fungible and non-fungible patterns
Knowing the standard is not enough. Strong developers also understand approval flows, transfer hooks, metadata conventions, and wallet UX implications.
Simple ERC-20 Example
pragma solidity ^0.8.20;
import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
contract StudyToken is ERC20 {
constructor() ERC20("StudyToken", "STDY") {
_mint(msg.sender, 1_000_000 ether);
}
}This example uses a battle-tested library to avoid rewriting core token logic from scratch.
Tokenomics and Real Product Thinking
A token is not useful just because it exists. Teams need to define why the asset exists, how it is minted, distributed, governed, or burned, and what behaviors it is supposed to incentivize. Poor tokenomics can destroy adoption even when the code works correctly. Good token design aligns utility, incentives, governance, and long-term sustainability.