A token standard is a collection of clear rules that dictate how a cryptocurrency token is made, acts, and operates within a blockchain network.

Tokens are digital assets that can be created, traded, and securely stored within a blockchain. They facilitate various on-chain functions such as paying transaction fees, securing the network through staking, managing liquidity pools, and participating in governance decisions.

To ensure compatibility with the blockchain they are based on and enable seamless integration across different applications, various token standards have emerged. These standards ensure that tokens are interoperable and can be easily integrated across diverse blockchain systems.

The most common standards are ERC-20, ERC-721, and ERC-1155.

Many developers of decentralized applications (dApps) favor the Ethereum blockchain for deploying smart contracts. The predominant token standard utilized on Ethereum is ERC-20.ERC-20 serves as Ethereum's standard for fungible tokens, encompassing various cryptocurrency types like utility tokens, security tokens, and stablecoins. It's extensively adopted by projects creating utility and governance tokens for decentralized applications (dApps) operating on the Ethereum blockchain or its sidechains.

Every ERC-20 token can seamlessly interact with one another and with compatible wallets such as the Ledger ERC20 wallet, Metamask or TrustWallet.

ANGLE governance tokens and Angle Protocol stablecoins — USDA, stUSD, EURA, stEUR — are ERC20 tokens.

ERC-721 stands as Ethereum's standard for non-fungible tokens (NFTs). Unlike fungible tokens, NFTs possess unique identifiers and cannot be exchanged interchangeably. They signify ownership of particular assets, including digital artwork, collectibles, gaming assets, event tickets, or virtual real estate.

The ERC-1155 standard enhances previous standards by enabling the creation of tokens that are independent of fungibility (meaning they can be either fungible or non-fungible) and efficient in their gas usage for processing transactions on the blockchain. The NFT ecosystem Enjin has developed ERC-1155 to allow a single smart contract to handle multiple types of tokens.

The ERC-4626 standard outlines procedures for depositing, withdrawing, and overseeing assets within a vault, along with minting and burning the vault's share tokens. A vault, whether through a multisig solution or smart contract, serves as a storage and management mechanism for assets like cryptocurrencies. It consistently holds the tokens it produces as returns. These generated tokens can subsequently be traded for the tokens initially locked within the vault.

Prior to ERC-4626, DeFi protocols managed their vaults and interest-bearing tokens through various non-standardized approaches. This lack of consistency posed challenges for developers aiming to create interoperable tools and for users trying to navigate different protocols. ERC-4626 tackles this issue by providing a unified interface, simplifying the development of interoperable and user-friendly DeFi products.

Angle savings solution is an ERC-4626 contract, which means that upon staking an Angle stablecoin in a savings contract users receive a classical ERC-20 token that can then be transferred, staked, lent or used in any way they want.

BEP-20 is the standard governing tokens utilized on the BNB Chain, which powers the Binance cryptocurrency exchange. It’s rerived from ERC-20.

TRC-20 is the token standard governing the creation of fungible tokens on the TRON blockchain, dictating their functionality. It shares similarities with ERC-20 tokens.

Token standards are pivotal in shaping blockchain ecosystems. They establish a foundational structure that streamlines token creation across the blockchain landscape, bolstering liquidity. By ensuring cryptocurrency tokens are interoperable and seamlessly integrated into decentralized applications (dApps), wallets, and exchanges, standards foster innovation.

They empower developers to leverage existing standards, promoting efficiency over reinvention. The resemblance between token standards like ERC-20 and BEP-20 simplifies token and application migration across diverse blockchains, expediting deployment and adoption.