Types of ERC Standards
In this article, we will go over the types of ERC standards, including the lesser-known ones, the acronym for Ethereum Request for Comments, is Ethereum application-level specifications, such as token standards, name registries, library/package formats.
An ‘Ethereum Request for Comments’ (ERC) is a document that smart contract programmers using the Ethereum blockchain platform write. They describe rules in these documents that Ethereum-based tokens must comply with.
The Ethereum community uses a process called the ‘Ethereum Improvement Proposal’ (EIP)? to review these documents. They comment on it and as a result of that, the developer that created the document may revise it.
The types of ERC Standards are:
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ERC-20
The ERC-20 standard has been the most important on Ethereum since 2015. ERC-20 has emerged as the technological standard for token implementation on the Ethereum blockchain. Developers use it for all smart contracts on the Ethereum blockchain. It lays out various adherence guidelines for all Ethereum-based tokens.It’s a fungible token standard. This means that two coins of any token built on it have the same value at a given point in time ERC-20 tokens are digital assets users can transfer and receive on the Ethereum blockchain. The main difference is that ERC-20 tokens are distributed on the Ethereum network rather than on their blockchain.
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ERC-721
ERC-721 is the gold Standard for Non-Fungible Tokens(NFTs). These are the tokens that have a unique value, code, and metadata. No two non-fungible tokens can replace another, because the two are unique. For example, digit assets like in-game avatars, digital and non-digital collectibles, and even tickets are all non-fungible.
These can be seen in blockchain-based games where each asset is unique and players can trade it and sell or buy items with it.
One of the examples that use the ERC-721 non-fungible tokens standard is the Crypto Kitties game which is basically a game developed on the blockchain which allows users to sell, buy and breed virtual cats.?
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ERC-1155
The ERC1155 multi-token standard, used widely in the gaming industry, allows for the management of fungible, semi-fungible, and non-fungible tokens. It has a lot of use in these games because they have fungible elements (like life/energy) and non-fungible elements (like weapons and other collectibles) that are all unique. All of these traits make ERC1155 better at storage management, efficient, and budget-friendly.
Unlike in ERC-721, ERC1155 bundles transactions together, thus reducing gas fees. Furthermore, its ability to create efficient NFTs and fungible tokens at the same time shows that it is an evolution from both ERC-20 and ERC-721.?
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ERC-223
ERC-223 is a Standard Established by European Research
Many people have sent coins to the incorrect wallet address or, even worse, to a smart contract, losing the coins forever. Several cynical developers could blame the end-users for sending tokens to the wrong address which can restrict public acceptance. These unfriendly interface features can turn off non-technical people.
proposed ERC-223 notifies users to send tokens to a smart contract address by mistake and cancel the transaction. Users have to pay for gas but save their ETH.
ERC-621
ERC-621 is an extension of the ERC-20 token standard. It adds two additional functions, increaseSupply and decreaseSupply.?
This can increase and decrease the token supply in circulation. ERC-20 only allows a single token issuance event. This restricts the supply to a certain amount which can’t be changed. ERC-621 proposes that totalSupply can be modified.
ERC-777
ERC 777 is a proposed standard that includes a function to identify receipt of tokens and start a smart contract immediately after the first transaction.
?While lowering the transaction overhead, it also allows a user to reject incoming tokens from a blacklisted address. Blacklisting of an address can be for various reasons such as hacking or illegal activities. An ability to decline payment from such an address improves the security position of an Ethereum DApp.
One of the most important is the ability to mint or burn tokens.?
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You just learnt 6 of the most important Ethereum Token Standards.
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