NFTs, DAOs & Web3

What is the difference between ERC-20 and ERC-721 tokens?

ERC-20 is an Ethereum standard for fungible tokens, where every unit is identical and interchangeable, while ERC-721 is the standard for non-fungible tokens, where each token is unique and individually identifiable. The difference is interchangeability. For example, one ERC-20 token equals any other of the same type, much like one rupee equals another, whereas each ERC-721 token, such as a specific digital collectible, is distinct and cannot be swapped one-for-one. ERC-20 suits currencies and utility tokens; ERC-721 suits ownership of unique items.