The Ultimate List of ERC Token Standards
In the previous article, we understood what asset tokenization is and how it works. You can give it a quick read here. In this article today, we will learn what token standards are and the ultimate list of ERC token standards.?So without any further delay, let's get started with our today's topic.?
What are Token Standards?
Token standards define the rules that facilitate cryptocurrency token development on varied blockchain protocols. But to understand them better, it is important to understand the basic mechanism of a smart contract standard. Smart contract standards can be understood with the following given points:
Token standards are mainly application specific and make a smart contract comply with them to function as intended on a given blockchain network. As we know, most blockchain smart contracts use Ethereum and hence give rise to the most common token standards being ERC-20, ERC-721, ERC-777, etc.?
Understand ERC Token Standards
Smart contract standards are also known as ERC token standards. ERC is an abbreviation for "Ethereum Request for Comment" and is a set of technical documents that describe the ultimate guidelines for developing smart contracts.?The smart contracts on the Ethereum framework need to comply with the set of rules to open up the true potential of the ecosystem such as token processing, token spending, and token development, etc.?During the course of the past few years, the ERC standards have evolved, in turn, widening the scope for Ethereum developers and enterprises out there. With the introduction of various ERC token standards, the blockchain ecosystem has become mainstream, and now supports various use cases & applications across various industries.?
ERC Token Standards | The Ultimate List
ERC-20
ERC-20 is one of the most popular and important token standards on Ethereum since 2015. It defines the standard for the development of the Ethereum blockchain and defines various guidelines for the development of related tokens.?It is considered a significant tool and a blueprint for the creation of fungible tokens on the Ethereum network. ERC-20 requires a single operation for each transaction and doesn't require KYC verification. Similar to any other digital asset, ERC-20 tokens can be transferred and received on the Ethereum blockchain.?
ERC-721
In contrast with the ERC-20 token standard which is a fungible token standard, ERC-721 is for non-fungible tokens (NFTs). Programmers use this token standard to tokenize unique objects, and collectibles such as music, art, fashion, etc.?By using this, a marketplace can be created for a set of non-fungible tokens.
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ERC-1155
ERC-1155 is a multi-token standard that is widely used for the gaming industry. In this token standard, the batch transfer is quite similar to the ones in ERC-20. It was designed by the team at Enjin to overcome the loopholes of the ERC-721 token standard. The batch transfers involved in this standard allow for keeping multiple assets in one smart contract.??
ERC-223
ERC-223 is a token standard established by European Research. It can fix UX issues with ERC token specifications despite it doesn't accept digital tokens. There have been many instances where users have accidentally sent token coins to the wrong address or smart contract making them lose it forever. To overcome such mishappenings and improve user experience, this token standard notifies users about the wrong transaction and cancels the wrong transaction. Amigocoin is one example of an ERC-223 standard protocol and costs as half as to run Ethereum.?
ERC-777
ERC-777 token is an Ethereum-based cryptocurrency and extends the usability of the ERC-20 standard. It is one of the most hyped for the minting and burning tokens and facilitates many other ways to boost the usability of blockchain technology.?
ERC-1400
Security tokens, representing real-life assets such as real estate are specifically created based on the ERC-1400 token standard. It allows the issuance of security tokens legally. also, this token standard makes it easier for security tokens to get transferred, shared, and deployed.?
ERC-1404
ERC-1404 is an extension of the ERC-20 standard and facilitates the issuance of security tokens complying with the transfer restrictions for implementing specific regulations. It also helps in creating a whitelist that enables the issuer to choose the ownership of tokens.?
Final Words
ERC standards are evolving day by day and with each new update comes up better functionality and an advanced improvement to existing problems. To have a great user experience, it is crucial to understand the right tokenomics of the given projects. Connect with our team of blockchain industry experts for detailed guidance and a roadmap. I hope this article helped you in understanding some of the popular ERC standards and their respective features.?