Token standards: ERC20 vs ERC721 vs ERC1155

Ethereum token development is one of the prevalent development opportunities, which upholds the whole network and numerous interconnected projects running simultaneously. Ethereum-based tokens can represent the value and service, and innovative companies use these tokens as internal currencies to buy, sell, and trade within the ecosystem.

Now that Ethereum supports token development, its community also sets some standards to ensure that tokens created on Ethereum are compostable with various existing ecosystems and satisfy specific user requirements. You should know that Ethereum also allows users to create a fungible token without the need to abide by any ERC standard.

To read more - https://www.leewayhertz.com/erc-20-vs-erc-721-vs-erc-1155/