Different Layers of Token Standards
Token standards are essential frameworks that define how tokens operate on a blockchain. They can be categorized into several layers, each serving a distinct purpose in the ecosystem.
1. Core Layer
At the base, the core layer focuses on the fundamental protocols and mechanisms that allow for the creation, transfer, and management of tokens. This includes the underlying consensus algorithms and blockchain architecture.
2. Token Standards Layer
This layer includes widely recognized token standards like ERC-20, ERC-721, and ERC-1155 for Ethereum. These standards define the functionalities and behaviors of tokens, such as transfers, approvals, and data storage.
3. Application Layer
The application layer consists of decentralized applications (dApps) that utilize these token standards to create user-centric functionalities. Examples include decentralized exchanges (DEXs), gaming platforms, and marketplaces.
4. Interaction Layer
Finally, the interaction layer encompasses user interfaces and wallets that enable users to interact with the tokens seamlessly. This includes web wallets, mobile wallets, and integrated dApp browsers.
Understanding these layers helps stakeholders navigate the complexities of tokenization in the blockchain landscape effectively.