ETH Tokens

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Ethereum ecosystem tokens: from ETH to DeFi

The Ethereum ecosystem is home to a wide range of tokens, each of which plays a unique role. This article will give an overview of the main types of tokens used in the Ethereum ecosystem:

ETH (Ethereum)

    • Function: Native Token Ethereum network, used to pay transaction fees and also to participate in Staking.
    • Importance: The key token that supports the functioning of the entire ecosystem.
    • Application: Payment of commissions, participation in Staking, use in dApps, exchange for other cryptocurrencies.

    ERC-20 Tokens

      • Function: Standard token format for creating cryptocurrencies on the Ethereum platform.
      • Importance: Allows the creation of new cryptocurrencies and decentralized applications (dApps) on Ethereum.
      • Application: Cryptocurrencies (for example, USDT, USDC, DAI), dApps tokens, utility tokens (for example, decentralized finance (DeFi) platform tokens).

      ERC-721 Tokens

        • Feature: Standard for creating NFTs (Non-Fungible Tokens) on Ethereum.
        • Significance: Opened up opportunities for digital ownership of unique assets such as digital artwork, collectibles, and other digital assets.
        • Applications: Digital art, collectibles, game metadata, identification and authentication.

        ERC-1155 Tokens

          • Function: Standard for creation NFT with multiple options.
          • Importance: Allows the creation of NFT collections with different attributes and rarities.
          • Application: Games, collecting, media, tokens with various functions.

          DeFi (Decentralized Finance)

            • Function: Tokens used in decentralized financial platforms (DeFi) such as Lending, Borrowing, Trading, Yield Farming.
            • Importance: Revolutionized financial services by providing an alternative to traditional financial institutions.
            • Application: Lending, Borrowing, Trading, Yield Farming, management of DeFi platforms.

            dApps tokens

              • Function: Tokens specific to specific decentralized applications (dApps) used to interact with the dApp.
              • Importance: Provide functionality and value to dApps, such as voting management, access to resources and services.
              • Application: Various functions depending on the dApp, such as voting in DAO, payments in games, access to services.

              Conclusion:

              The Ethereum ecosystem is constantly expanding and evolving, attracting more innovation and new types of tokens. Understanding the diversity of Ethereum tokens is key to successfully interacting with this rich ecosystem and taking full advantage of its capabilities.