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ERC Standards: A Comprehensive Guide

ERC standards define how tokens behave on Ethereum. This guide explores popular standards like ERC-20, ERC-721, ERC-1155, and more.

Written by BuildBear Team on Jun 18, 2024

What are ERC standards?

ERC stands for "Ethereum Request for Comments." These are essentially sets of technical guidelines that define how smart contracts, the building blocks of Ethereum applications, interact with tokens. Think of it like a universal language for tokens, ensuring seamless communication and interoperability within the Ethereum ecosystem.

Why are ERC standards important?

Imagine a world where every token spoke its own dialect. Communication would be a nightmare! ERC standards solve this by establishing common rules for token behavior. This fosters:

  • Compatibility: Wallets, exchanges, and other applications can easily interact with tokens adhering to the same standard.
  • Security: Standardized functionalities minimize vulnerabilities and ensure predictable behavior.
  • Innovation: Developers can build upon existing standards, accelerating the creation of new and exciting applications.
  • Interoperability: ERC standards ensure seamless interaction between different applications and wallets within the Ethereum ecosystem.
  • Transparency: The public nature of ERC standards allows for easy auditing and verification of token functionality, fostering trust and transparency within the ecosystem.

ERC-20

ERC-20 defines how tokens are created and managed on the Ethereum blockchain. It allows for fungible tokens, meaning each token is interchangeable. Perfect for cryptocurrencies, utility tokens, or stablecoins.

Key Features:

  • Fungibility: All tokens are identical.
  • Transferability: Easy to send/receive.
  • Transparency: Publicly visible transactions.
  • Interoperability: Works with many dApps and wallets.

ERC-721

ERC-721 powers non-fungible tokens (NFTs)—each token is unique. Ideal for digital art and collectibles.

Key Features:

  • Uniqueness: Each token is one-of-a-kind.
  • Ownership: Tamper-proof record on the blockchain.
  • Transferability: Tradable on NFT marketplaces.
  • Metadata: Creator info, descriptions, etc.

ERC-1155

Supports both fungible and non-fungible tokens in one smart contract. Great for gaming or apps with multiple asset types.

Key Features:

  • Multi-token support
  • Batch transfers
  • Enhanced efficiency and metadata

ERC-223

Improves on ERC-20 by adding safety features.

Key Features:

  • Safe transfers to prevent token loss
  • Extra data handling
  • Reduced gas usage
  • Backward compatible

ERC-777

An advanced standard with better control and security.

Key Features:

  • Operator approval and transfer hooks
  • Optional data sending
  • Fungible/semi-fungible support
  • ERC-20 compatible

ERC-1337

Designed for subscription payments.

Key Features:

  • Recurring payments
  • Custom subscription models
  • On-chain transparency
  • Decentralized management

ERC-4626

Defines vaults for yield-bearing tokens.

Key Features:

  • Deposits with yield
  • Automated DeFi strategy interaction
  • Vault shares
  • Security and transparency

ERC-725

An identity standard for managing user data.

Key Features:

  • User privacy control
  • Tamper-proof identity storage
  • Streamlined verification

ERC-1400

Advanced standard for real-world asset tokenization.

Key Features:

  • Custom features and mini-economies
  • Inter-token operations
  • High flexibility and automation

To explore more, visit Ethereum ERC Registry

Conclusion

ERC standards are the foundation of Ethereum's token ecosystem. Adhering to them ensures compatibility, innovation, and trust in decentralized applications.