What Is a Token Standard?
A token standard is a set of rules and protocols that define how digital tokens are created, stored, transferred, and used. Token standards provide the framework for developers to create applications on top of them. They also enable interoperability between different blockchain networks and platforms. Token standards can be divided into two categories: open source (such as ERC-20) or proprietary (such as Ripple).
Open source token standards allow anyone to use the codebase without having to pay any fees or royalties. This makes it easier for developers to build projects quickly using existing tools and frameworks. Proprietary token standards are usually developed by companies who own the rights to their technology and require users to pay licensing fees in order to use them. These types of token standards often have more features than open source ones but may not be compatible with other blockchains or platforms due to their closed nature.