ERC-20 vs ERC-1155: What’s the Difference and Why It Matters

When you hear about crypto tokens on Ethereum, you’re mostly hearing about ERC-20, a token standard that lets developers create fungible tokens like stablecoins and utility coins. It’s the oldest and most widely used rulebook for building tokens on Ethereum. But there’s another standard gaining ground—ERC-1155, a multi-token standard that handles both fungible and non-fungible tokens in one contract. This isn’t just a technical upgrade; it’s a shift in how digital assets are created, traded, and used. If you’re buying NFTs, playing games, or investing in tokens, understanding this difference saves you from confusion and bad decisions.

Think of ERC-20, a token standard that lets developers create fungible tokens like stablecoins and utility coins as a single type of coin—like Bitcoin or USDC. Every unit is identical, interchangeable, and easy to track. That’s perfect for money-like tokens. But what if you want to issue 100 identical coins AND 5 unique collectibles in the same system? ERC-20 can’t do that cleanly. You’d need separate contracts, extra code, and higher gas fees. That’s where ERC-1155, a multi-token standard that handles both fungible and non-fungible tokens in one contract comes in. It’s like a Swiss Army knife: one contract can manage thousands of different token types at once. Games like Splinterlands and marketplaces like OpenSea use it because it cuts costs and complexity. It also lets you batch transfers—send 10 different items in one transaction instead of 10 separate ones.

ERC-20 still dominates because it’s simple and trusted. Most DeFi apps, exchanges, and wallets were built around it. But ERC-1155 is where the future is headed—for NFT collections, in-game items, and tokenized real-world assets. The ERC-20 vs ERC-1155 debate isn’t about which is better overall. It’s about which fits your use case. Need a stablecoin? ERC-20. Need a game with 500 unique skins and 10,000 common potions? ERC-1155. The projects below show real examples of both standards in action—from failed airdrops tied to bad token designs to smart systems that cut waste and fraud. You’ll see how these standards shape everything from security to user experience. And you’ll learn why some tokens vanish while others stick around.