When you see the ERC-20, ERC-721, or ERC-1155 token, these are not just random letters. They are token standards that define how tokens interact with the blockchain (e.g., Ethereum) and with each other.
ERC-20: Standard for fungible tokens (like regular money).
ERC-721: Standard for non-fungible tokens (NFTs), unique digital assets.
ERC-1155: Combines properties of both, allowing for the creation of both fungible and non-fungible tokens. These standards ensure compatibility and allow for easy storage, transfer, and use of tokens across different applications and wallets.