This time we have a pretty important topic. Involves ERC-20 tokens and it will help us understand the huge Ethereum ecosystem standards. In a macro view, we will examine the most important tokens that make up the Ethereum network. Which is the most popular and used blockchain in the blockchain.
Today, a blockchain is a series of immutable records and data, with timestamps that are managed by computers. This group of computers does not belong to a single entity. Each block of data is secured and linked together by cryptographic principles.
Looking at an example, in the Ethereum blockchain different tokens coexist in the same ecosystem. This allows the existence of all an economic system around it.
ERC-20
Without a doubt, the ERC-20 standards are the most well-known and popular. They run on the Ethereum main chain. Its called Ethereum utility and fungible tokens. One of its characteristics is that they have a certain supply and are used for everything related to transactions.
There are thousands of such tokens and you probably know some like USD Coin, Cronos, Chainlink, Basic Attention, TrueUSD, Chiliz, SLP, Mana, and many more. The ERC-20 standards used in smart contracts have only 6 basic functionaries that give the functional capacity to each token.
They have such a simple code that you do not require any knowledge of programming or computer science to understand how it works. But they have greater importance. That importance lies in its enormous capacity to secure the internal economy of the main chain.
ERC-223
The ERC-20 standards are quite useful, but they do not reach the perfection desired by their Ethereum developers, carrying some design flaws. One of those failures has caused the loss of tokens when they are sent by a smart contract, using the process to send them to a common wallet.
This error has resulted in the loss of about 3 million dollars in these ERC-20 tokens since they were launched. ERC-223 eliminates this programming error and allows anyone to send tokens to smart contracts or wallets, with the same function.
ERC-721
These ERC-721 standards became very famous when the collectible video game CryptoKitties, which runs on Ethereum. It gained popularity in mid-2017. There is a key difference between the ERC-721, the ERC-20 standards, and the others, which makes it easy for any developer to create non-fungible tokens.
In other words, a token could possess a value that differs from another that is exchanged within the same ecosystem or platform. NFTs are extremely useful as they allow for the tokenization of unique individual assets. Some of that, could include digital information or much more valuable assets.
We can mention video moments, photographs, images, voices, tweets, certificates, the ownership of something or musical royalties, transparently transferred. The Ethereum main chain or blockchain guarantees the integral element and traceability of any product, at unprecedented levels.
ERC-777
Quite similar to the ERC-223, the ERC-777 standards were designed to perfect the standards of the ERC-20. Perfectly compatible with them. The ERC-777s turned out better, because like the ERC-223, they address the initial design drawbacks, causing large losses of about 3 million dollars.
The standards of the ERC-777 are unique for their breadth in the management mechanism of the operations included in the main chain. Having a standard of smart contract on the Ethereum blockchain makes it possible to review it by any interested user.
The ERC-777 standards use the central registers that make it possible for operations in smart contracts to be easy to verify, due to the added functionalities. It also accepts the participation of approved operators. An element that makes it easier for people to move tokens on their behalf, something that makes them highly customizable.
Unfortunately, there are still not too many known applications that are based on the standards of ERC-777 tokens.
ERC-1155
These token standards, come to mean a kind of fusion of the ERC-20 and ERC-721. Initially, they were launched by the company Engine. Specifically, they are a fixed interface for contracts that manage many types of these, they are a single contract extended to include any combination of different tokens.
You can combine fungible tokens, NFT or non-fungible tokens, and other configurations, such as semi-fungible ones, where standards such as ERC-20 and ERC-721 must be implemented. And this implementation requires at the same time, the implementation of an individual contract for each of them or each collectible.
This feature puts into action a huge amount of redundant bytecodes on the Ethereum main chain and splits certain functionalities. Within these functions, one of them ends up separating and sending the contracts separately at the address authorized for each one.
Then came the heyday of video games and blockchain technology, such as Engine Coin. Video game creators can create hundreds of tokens. This new creation is going to require a set of these standards so that they can seamlessly enter the main chain.
When you trade a multiplicity of tokens, you can build on these standards. This will emilinatethe approval of contracts for the individual but divided tokens.
This is how this walk ends through the five main tokens that run on the Ethereum platform. Every cryptonaut should know these questions. Do you want to know more? Read our article about how to create an NFT!
