ERC Token Standard and Its Types
ERCs (Ethereum Request for Comments) is the technical documents comprising of information about protocol specifications and contract descriptions. Which are primarily used by smart contract developers to implement tokens for the Ethereum ecosystem?
Its standardization is done after being accepted by the community through EIP (Ethereum Improvement Proposal).
Further, an ERC is categorized based on the specific type of EIP as follows: -
1. ERC-20
It is the most popular standard token type in the crypto community. About 99% of ICO tokens issued on top of the Ethereum execute this standard. And further, let any application or smart contract to interact with a token in a standard way without the need for any further details.
2. ERC-223
ERC-223 is a proposal right now, not a standard introduced by a developer, who took charge of the discrepancies in the present ERC-20 standard for tokens. Further, it provides better security in avoiding accidentally lost tokens inside contracts that are not designed as per the sent tokens. Also, ERC-223 transfer to contracts consumes less gas than ERC-20.
3. ERC-721
Unlike, ERC-20 and ERC-223 standards that have a supply of tokens, where tokens are convertible, ERC-721 aims to create a non-convertible token (i.e., a single of this token is equal to another unit). That provides a simpler interface for trading the tokens, as all of the token supply can be treated similarly.
4. ERC-777
ERC-777 is an updated version of the ERC-20, bringing more transaction volume than the ERC-223. Further, its highly customizable nature allows allocation of tokens through the execution of smart contracts and thereby, executes and verifies contract functions at an unprecedented level.
5. ERC-820
ERC-820 standard is a central registry that makes it easy to examine smart contracts, thus lending some serious transparency
However, these two token standards, ERC-777 and ERC-820 are not finding more application space as no known projects on the ethereal platform using the ERC-777, and ERC-820 token standards are life. Thus, one needs to wait to see how these will perform when deployed on a big project.
6. ERC-1404
ERC-1404 is a fully open source, designed for security tokens, tokenized securities and other tokens that carry complex compliance requirements, thereby, bringing security, quality, and interoperability. It is fully open source, which is paramount to ensuring its security, quality, and interoperability. Similar to ERC-20, ERC-1404 serves as a simple, easy to deploy, and interoperable platform for the entire Ethereum universe.
Summing up to these aspects, it can be inferred that very soon these standards will find more application in the global projects. They are bringing more secured, compatible, and simple interface for users worldwide. Further, there are awaiting proposals that would bring standardization for Ethereum community better. But it will just take time to agree and approve standards and adopt it similar to ERC-20.
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