[Coin Term] What is the Ethereum ERC Standard?

What is the Ethereum ERC Standard?

Ethereum is a leading blockchain platform that features smart contract functionality. To help developers seamlessly implement tokens and applications on the Ethereum network, several standards (ERC, Ethereum Request for Comment) have been proposed. ERC standards define the rules for how specific tokens and smart contracts operate on Ethereum.

[Role of ERC Standards]

ERC standards assist developers in writing compatible smart contracts. This plays a crucial role in ensuring smooth integration across various decentralized applications (DApps), exchanges, wallets, and other blockchain-based services.

[Notable ERC Standards]

1. ERC-20 (Fungible Token)

ERC-20 is the most widely used token standard on the Ethereum network, defining rules for implementing fungible tokens. Most cryptocurrency projects issue tokens based on the ERC-20 standard.

• Key Features:
  • totalSupply: Total supply of tokens
  • balanceOf: Query the balance of a specific address
  • transfer: Transfer tokens to another address
  • approve: Approve token usage
  • transferFrom: Move approved tokens to another address
• Use Cases:
  • Various tokens such as USDT (Tether) and UNI (Uniswap)
  • Initial Coin Offerings (ICOs) and crowdfunding events

1. ERC-721 (Non-Fungible Token, NFT)

ERC-721 is a standard for implementing non-fungible tokens (NFTs) that represent unique assets. This is used to manage unique assets such as game items, artworks, and digital real estate on the blockchain.

• Key Features:
  • ownerOf: Query the owner of a specific token
  • transferFrom: Transfer tokens
  • approve: Grant token usage rights to a specific address
  • safeTransferFrom: Safely transfer tokens
• Use Cases:
  • NFT projects such as CryptoKitties and Bored Ape Yacht Club (BAYC)
  • Trading of digital art and collectibles

1. ERC-1155 (Multi-Token Standard)

ERC-1155 is a multi-token standard that combines the advantages of ERC-20 and ERC-721, allowing management of multiple types of tokens within a single smart contract.

• Key Features:
  • Manage both fungible and non-fungible tokens within a single smart contract
  • Support for bulk transfers and efficient storage structures
  • Gas cost savings
• Use Cases:
  • Blockchain-based game items
  • Managing large quantities of NFTs and tokens in NFT marketplaces

[Evolution of ERC Standards]

ERC standards are continuously evolving, with new standards being proposed related to DeFi (Decentralized Finance) and the metaverse. For example:

• ERC-4626: A standard for yield-bearing tokens
• ERC-2981: A standard for NFT royalty payments

As the Ethereum ecosystem grows, new ERC standards emerge, further enhancing interoperability with existing standards.

[Conclusion]

Ethereum’s ERC standards are essential components of the blockchain ecosystem, helping developers design tokens and smart contracts in a consistent manner. Notable standards such as ERC-20, ERC-721, and ERC-1155 are driving the advancement of the blockchain industry through various applications. Going forward, ERC standards will continue to evolve and enable new innovations.

This article does not constitute investment advice or financial recommendations. Cryptocurrency investments carry high risks, and the responsibility for any investment decisions lies solely with the investor.