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There is a long list of proposed ERC standards, but these 5 standards are ones that are most popular among the all.
ERC 20
It is the most common and well-known standard within all crypto community. 99% (if not all) issued ICO tokens on top of the Ethereum implements this standard. The key benefit we get here is that any application or other smart contract can interact with a token in a standard manner without a need of knowing other details about the token. Therefore, we have a very pleasant way to create any ICO token and have a standard way to interact with all of them like they are all the same. For instance, crypto wallet developers can avoid custom development and integrations to add new tokens. All they need to know is the Ethereum Token address that implements the standard.
ERC 223
This proposal was introduced by a developer, who decided to solve issues with the current ERC-20 standard for tokens.
Advantages:
- Provides the possibility of avoiding accidentally lost tokens inside contracts that are not designed to work with sent tokens. However, these accidental transfers, which are uncommon already, will probably become more uncommon with ENS(Ethereum name service) in future.
- ERC-223 transfer to contracts consumes less gas than ERC-20.
Disadvantages and risks:
- ERC-223 is a proposal right now, not a standard. Therefore, there are none of the high-profile ICO tokens deployed with this standard.
- Also, it is not yet implemented in any production tokens that I found from my research.
- Exchanges might need to do some modifications in order to support such token. There are options that some of the exchanges might not be prepared for it yet.
ERC-721
The goal of this proposal is to create a non-fungible token. In ERC-20 and ERC-223 standards, we have a supply of tokens, where tokens are fungible (i.e. single unit of that token is equal to another unit). This makes it easy to trade those tokens, as all of the token supply can be treated in the same manner. However, there are various cases when you need to have unidentical tokens, which are used within the platform, and add some extra parameters and price them differently. For instance, we could have a token which represents some part of real estate object, and each token might have some different parameters added to it. Or in WePower case, tokenized electricity tokens cannot be treated the same, as each of it might represent different time frame, amount or even type of energy (solar, wind, hydro). Such standard would make it easy to create marketplaces for multiple non-fungible token types. It is just a proposal yet, but hopefully someday Ethereum foundation will accept this standard and include it to the list.
ERC 621
ERC-621 is an extension of the ERC-20 token standard. It adds two additional functions, increaseSupplyanddecreaseSupply. 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 canât be changed. ERC-621 proposes that totalSupply can be modified.
ERC 827
Another extension of the ERC-20 standard is ERC-827. It allows for the transfer of tokens and allows tokens to be approved by the holder to be spent by a third party. Tokens on Ethereum can be reused by other applications, including wallets and exchanges. This could be very useful for spending a dynamic amount that is up to a third party based on some criteria both parties have agreed to. Most importantly, since it is an extension of ERC-20, it is also ERC-20 compatible.
Other ERC standards
There are many more proposals that should make the whole standardisation for Ethereum community better. It will just take time to agree and approve standards and adopt it to actually be used as it is with ERC-20.
Want to learn more? Checkout my previous articles.
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- Quorum 101: Getting started with Quorum
- 13 sidechain projects every blockchain developer should know about
- Setting up your first distributed private storage network on IPFS: Part 1
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5 ERC standards every Ethereum developer should know about was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
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