In this article we learn ERC20, ERC721, ERC1155, ERC165, ERC223 and ERC827
ERC20
The Ethereum blockchain’s ERC-20 technical standard specifies the creation and administration of fungible tokens. In essence, it serves as a model for creating replaceable tokens, such as virtual currencies. Developers may make sure their tokens work with different Ethereum-based wallets and applications by adhering to the ERC-20 standard.
Important features of ERC-20:
Fungible Tokens:
The focus of ERC-20 is on fungible tokens, which are those that may be exchanged for one another without losing value.
Interoperability:
The standard guarantees the seamless integration of ERC-20 tokens with various Ethereum-based services, such as decentralized wallets and exchanges.
Smart Contracts:
On the Ethereum blockchain, ERC-20 tokens are implemented as smart contracts that enable automated rules and transactions.
Standardization
Token development and management are made simpler by the ERC-20 standard, which offers a consistent set of guidelines and features.
Gas Charges:
Petrol fees must be paid in Ethereum’s native currency, ETH, when transacting with ERC-20 tokens on the Ethereum blockchain.
Benefits of ERC-20
Simplified Token Development:
By streamlining the token creation and deployment process, the standard frees up developers to concentrate on their primary features.
Increased Ecosystem Integration:
The ease with which ERC-20 tokens can be integrated with other Ethereum-based services increases their usefulness and possible applications.
Improved User Experience:
The standard increases user happiness by giving users a dependable and uniform experience when engaging with ERC-20 tokens.
Support for DeFi:
Numerous financial goods and services are made possible by the widespread use of ERC-20 tokens in decentralized finance (DeFi) applications.
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ERC721
On the Ethereum blockchain, ERC721 is a standard for non-fungible tokens (NFTs). It outlines a set of guidelines and features that smart contracts can use to handle distinct, non-transferable tokens that signify the ownership of goods or assets. These tokens are not the same as fungible tokens, such as Bitcoins, which have identical units.
What it is: The Ethereum blockchain’s NFT construction and management are outlined in the open standard ERC721.
The creation, transfer, and ownership querying of unique tokens are among its key characteristics.
How it works: A distinct token with a smart contract is used to represent each NFT.
Why it’s important: It gives NFTs a common interface, which facilitates interoperability and makes using NFTs in various applications simpler.
Use cases: Digital art, music, and game elements are frequently created with ERC721 NFTs.
Relation to ERC20: ERC721 is the standard for non-fungible tokens, whereas ERC20 is the standard for fungible tokens, such as cryptocurrency.
ERC1155
What is ERC1155 Token
The Ethereum blockchain’s ERC1155 multi-token standard enables the production and administration of both fungible and non-fungible tokens inside of a single smart contract. In contrast, different contracts were usually needed for ERC20 (for fungible tokens) and ERC721 (for non-fungible tokens). ERC1155 lowers transaction costs and blockchain space usage by enabling batch token transfers.]
Standard for Multiple Tokens:
ERC1155 simplifies development and lowers deployment costs by enabling developers to build multiple token kinds (fungible, non-fungible, and semi-fungible) within a single contract.
Batch Transfers:
Gaming and other applications that need to move many things will benefit greatly from its ability to efficiently batch transfer multiple tokens in a single transaction.
Fungible, Non-fungible, and Semi-fungible Tokens:
ERC1155 provides versatility in token design by supporting all three forms.
Gas Efficiency:
ERC1155 drastically lowers the gas costs related to deploying and interacting with smart contracts by combining several tokens into a single contract.
Widely Used in Games and NFTs:
ERC1155 is a widely used standard in the NFT field for managing many NFT collections under a single contract, as well as in the gaming industry for managing in-game assets like coins and collectibles.
Examples
ERC1155 can be used by a game to manage both unique characters or objects (non-fungible) and in-game currency (fungible) under a single contract.
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ERC165
A smart contract standard called ERC165 makes it easier to detect interfaces at runtime, enabling a contract to identify which interfaces another contract implements. It gives contracts a means to let other contracts know which interfaces they support and to query that information. Contracts can communicate with one another in this way without making assumptions about their interfaces.
Purpose:
The issue of contracts needing to know which interfaces another contract supports at runtime is resolved by ERC165.
How it works:
Interface IDs: By assigning each interface a four-byte code known as an interface ID, contracts define which interfaces they implement.
Contracts implement the supportsInterface function, which returns false otherwise and true if the contract supports the specified interface ID.
Benefits:
Instead than depending on hardcoded assumptions, dynamic interaction enables contracts to communicate with one another based on supported interfaces.
Interface discovery: Allows contracts to find out which interfaces other contracts have implemented.
Version management: May be used to ascertain which interface version is covered by a contract.
ERC223
Building upon the current ERC-20 standard, ERC-223 is a proposed token standard for Ethereum. It seeks to fix an issue with ERC-20 that allowed tokens to be inadvertently trapped inside smart contracts in the event that the receiving contract lacked the logic necessary to manage them. To do this, ERC-223 adds a tokenReceived function that enables smart contracts to manage tokens that arrive.
Key Features of ERC-223:
Event Handling:
Token transfers are treated as events in ERC-223, which employs an event-handling approach. A contract’s tokenReceived function is called when a user gives tokens to it, enabling the contract to manage the incoming tokens.
TokenReceived Function:
When a transfer to a contract is attempted, the ERC-223 token is intended to call this function. It gives the contract the ability to decide whether to accept or reject the incoming tokens.
Backward Compatibility:
Since ERC-223 and ERC-20 are backward compatible, ERC-20 tokens can be transferred to contracts that support ERC-223.
Improved Safety:
ERC-223 aids in preventing unintentional token loss by letting contracts manage incoming tokens. The transfer will be reversed and the tokens will not be lost if a contract lacks a tokenReceived method.
Reduced Gas Consumption:
Compared to the ERC-20 transferFrom method, ERC-223 transfers to contracts can be completed in a single transaction, which lowers petrol expenses.
Why ERC-223 was created:
Addressing the problem of lost tokens in ERC-20 contracts was the main driving force for the creation of ERC-223. Users can unintentionally transmit tokens to contracts that lacked the required logic, resulting in token loss, because ERC-20 lacked a way for contracts to receive and handle incoming tokens.
By giving smart contracts the ability to respond proactively to incoming token transactions, ERC-223 essentially seeks to offer a safer and more effective method of transferring tokens to them.
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ERC827
The Ethereum token standard ERC827 expands on the widely used ERC20 standard. It makes it possible to include data with token transfers, facilitating more intricate transactions and interactions. This implies that during the transfer process, users can transmit tokens to smart contracts and perform operations on the recipient’s contract.
Here’s a more thorough explanation:
What it does:
Extends ERC20:
ERC827 is a higher-level token standard that expands upon ERC20’s capabilities.
Enables data transfer:
In addition to transferring tokens, ERC827 enables users to transmit data to smart contracts.
Simultaneous transfer and call:
Users can transfer tokens and initiate a function on the recipient’s smart contract simultaneously to ERC827’s ability to execute a call within the same transaction.
More complex smart contract interactions:
More complex interactions between smart contracts are made possible by the ability to convey data and make calls during token transfers.
Improved security:
The goal of ERC827 is to increase the security of smart contract interactions and token transfers.
How it works:
Recipient-driven logic:
When a transfer takes place, ERC827 calls a function on the recipient’s smart contract.
Customizable data fields:
More specialised interactions with smart contracts are made possible by the ability for users to establish custom data fields within the transfer procedure.
Enhanced flexibility:
Compared to ERC20, ERC827 offers a more adaptable method for token transfers and smart contract interactions.
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