Thread by @EntityFinance

One of the backbones of the #MultiversX ecosystem is the #ESDT token standard.

Let's explore its unique features and how its capabilities stack up against the most popular token standard out there: the ERC20 token.
#Ethereum

1/11: The main difference is that ESDT is pre-coded, non-programmable, and with a fixed set of functionalities. #ERC20, on the other hand, requires developer expertise and auditing for robustness and security.

2/11: Here are the key functionalities of ESDT tokens:

⚗️Minting: Mint new tokens after their initial release.

🔥Burning: Users can burn a certain amount of their tokens.

⏯Pausing/Unpausing: Prohibit all operations except mint and burn.

3/11 🥶Freezing: Freeze a separate account, blocking all incoming and outgoing transactions.

🧹Wiping: The #token manager may wipe out the tokens held by a frozen account.

🧣Ownership transfer: The owner can designate another ESDT account as owner.

4/11 🛠Upgrading: Possibility to update token properties.

Always check these properties before acquiring an ESDT to understand the token issuer's power.

5/11 ESDT tokens operate on a registry, transferring between wallets without needing contract signing. This simplifies token transactions and reduces the risk of losing #funds through malicious contracts.

6/11 Smart contract interaction is also simplified with ESDT native support, streamlining the development process. In contrast, ERC20 tokens often require complex and error-prone logic. ESDT is the clear choice for ease of use.

7/11 While both ERC20 and ESDT support diverse use cases, ESDT's inherent performance advantages make it the ideal choice for next-generation projects, including DeFi, #NFTs, gaming, and more.

8/11 Scalability also matters when it comes to mass adoption, and ESDT shines here. The #MultiversX's sharding technology ensures that all ESDT tokens are fast, efficient and cost-effective, while Ethereum's solutions rely on Layer 2 technology to achieve similar performances.

9/11: Although ERC20 benefits from a mature ecosystem, ESDT is quickly catching up. MultiversX's growing popularity brings more #developer resources, tools, and libraries for ESDT token creation, making it a future-proof choice. 🛠️

10/11 In conclusion, ESDT tokens offer unique benefits and enhanced security on the MultiversX blockchain. The standard's simplicity and built-in features make it an attractive choice for not only developers but for the masses as well.

11/11: Interested in learning more about the ESDT token standard?

Explore the official documentation for a deeper understanding! 📚

docs.multiversx.com/tokens/esdt-to…