ERC-20 बनाम ERC-721 Tokens

Ethereum पर "tokens" बनाने के लिए standards हैं। दो main standards: ERC-20 (fungible tokens) और ERC-721 (NFTs)। यह distinction समझना important है क्योंकि tax treatment, use cases, और storage सब अलग हैं।

ERC-20 — Fungible Tokens।

"Fungible" = interchangeable। आपके 100 USDT मेरे 100 USDT के बराबर हैं — कोई difference नहीं। Currency जैसे — हर rupee identical है।

Examples: - USDT, USDC (stablecoins) - UNI, AAVE (DeFi tokens) - LINK (Chainlink) - WBTC (wrapped Bitcoin) - Most cryptocurrencies that "live" on Ethereum

ERC-20 standard rules: - Total supply trackable - Balance per address - Transfer function - Approve/allow others to spend on behalf

Why ERC-20 matters: Standardization = compatibility। Any ERC-20 token works on any DEX, wallet, lending protocol। यह massive ecosystem benefits देती है।

Indian context: USDT (Indian exchanges पर) sometimes ERC-20 version, sometimes TRC-20 (Tron) version। Withdraw करते समय network choose करना ज़रूरी — wrong network = funds lost।

ERC-721 — Non-Fungible Tokens (NFTs)।

"Non-fungible" = unique। हर NFT distinct है — कोई दूसरा identical नहीं। Like art, real estate, collectibles।

Examples: - CryptoPunks, Bored Apes (PFP collections) - Art NFTs (Beeple, Pak) - Domain names (ENS — alice.eth) - Gaming items (Axie Infinity, Sandbox) - Music royalties - Real estate tokenization

ERC-721 standard rules: - Each token unique ID - Ownership tracking - Transfer rules - Metadata reference (image, attributes)

ERC-1155 — bonus standard। ERC-1155 hybrid है — same contract में fungible और non-fungible दोनों support करता है। Gaming में popular — एक standard में gold (fungible) + unique sword (NFT) handle।

Comparison table:

| Aspect | ERC-20 | ERC-721 | |---|---|---| | Interchangeable? | Yes | No | | Use case | Currencies, utilities | Art, collectibles, ownership | | Storage in wallet | Token balance | Individual token IDs | | Trading venues | DEXs (Uniswap) | NFT marketplaces (OpenSea) | | Indian tax | Section 115BBH | Section 115BBH (yes, NFTs too) |

Indian tax on ERC-20 vs ERC-721:

ERC-20 tokens: Sale = Section 115BBH event। 30% on profit, 1% TDS, no offset।

NFTs (ERC-721): - Sale = Section 115BBH event - 1% TDS applies on sale value - Mint cost can be added to cost basis - "Gift" of NFT = taxable if value > ₹50K (Section 56) - Created and sold your own NFT? Profit = income (Section 56 or business income)

Practical buying examples:

Buy USDT (ERC-20): - CoinDCX में: search USDT, buy with INR - Withdraw to MetaMask: choose Ethereum network (vs TRC-20) - Pay ~$3-5 in gas fees mainnet, or use Polygon USDT (cheap)

Buy NFT (ERC-721): - OpenSea पर browse - ETH wallet (MetaMask) से connect - Buy clicks → MetaMask popup → confirm with gas - NFT appears in wallet "Collectibles" section

Storage: - ERC-20: tokens visible as balance in any Ethereum wallet - ERC-721: tokens visible as individual items; some wallets show image preview

Hardware wallet support: - Ledger: full ERC-20 + ERC-721 support - Trezor: full support - Mobile wallets (Trust): full support

Indian users — what to focus on:

1. ERC-20 understanding essential — most crypto you'll interact with is ERC-20। Stablecoins, DeFi tokens, etc.

2. NFT participation optional — high tax complexity + low intrinsic utility for most। Treat as art/collectible (not investment) if engaging.

3. Network selection important — choosing wrong network (ERC-20 vs TRC-20 vs Polygon) when withdrawing = funds lost। Always double-check।

4. Gas costs matter — small ERC-20 transactions on mainnet often uneconomical। Use Polygon।