Mastering Ethereum token standards
In this section, we will go over Ethereum token standards. They are a set of smart contracts that define rules, conditions, and operations that specify how the token will function in the Ethereum ecosystem. We will start by looking at the different types of tokens or coins, and how they are funded. In layman’s terms, the concepts of cryptocurrency, crypto assets, coins, or tokens are interchangeable, although they may mean different things in the crypto space. Let’s take a look at what they mean.
Definition of cryptocurrency
Just like fiat currency, coins such as Bitcoin or Ether are the native cryptocurrency that’s minted through the L1 blockchain protocol and circulated on the blockchain network to fuel the crypto economy in its ecosystem. Bitcoin is sometimes referred to as a coin because they were the first kind of crypto coin to be created. All other L1 minted coins, including Ether and those we mentioned in Chapter...
