Token Standards
There are numerous token standards across various blockchains. These standards help ensure smart contracts remain composable, so for instance when a new project issues a token, that it remains compatible with existing decentralized exchanges.
Sei Token Standards
Here are some of the most popular token standards on Sei:
- TokenFactory: This offers a standardized mechanism for creating fungible tokens, which are interchangeable and identical. These tokens can embody various digital assets like voting rights, virtual currencies, or staking tokens. They are also native sdk.Coins and come with a variety of native functionality
- CW721: This contract provides a standard approach for handling non-fungible tokens (NFTs). These are unique and are not interchangeable with any other token. Examples could include ownership rights to a piece of artwork, or the licensing for a specific song.
- CW20: Although not recommended, this contract provides another approach for handling fungible tokens. Similar to ERC-20 standard, contracts can implement this specification. CW20 contracts provide a standardized framework for the issuance, transfer, and tracking of fungible tokens.
TokenFactory is strongly recommended over CW20 for several reasons including:
- Performance: Less gas is required to interact with it
- Security: Tokenfactory shares the same security model as the base blockchain
- Standardization: Tokenfactory directly integrates with the native bank module