In the ever-evolving landscape of blockchain technology, the ERC token standards plays an important role in promoting interoperability and improving the usability of Ethereum-based tokens. Ethereum is the most popular blockchain network due to its reputation and reliability. To perform any crypto-related activity, you first need crypto tokens. The Ethereum blockchain has multiple ERC standards for all types of crypto token creation. So it is more beneficial for startups who are looking to level up your crypto business with worthy Crypto token development services. This standards have many benefits including interoperability, simplified development, increased liquidity, compliance, and security, etc.
In this blog post, we’ll reveal the secrets of the ERC standards so you can clearly understand its meaning and impact. So let’s embark on an insightful journey to decipher the ERC standards!
Now, let us initiate this blog with…
What are ERC Token Standards?
ERC stands for “Ethereum Request for Comment” and refers to a set of proposals from the Ethereum community suggesting new features and improvements to the Ethereum network. Among these proposals, the ERC standards specifically defines the rules and specifications that Ethereum-based tokens must follow to ensure interoperability and compatibility between different applications and wallets.
ERC Token standards hold guidelines for developing smart contracts and dApps. It aids in creating, managing, and exchanging tokens on the Ethereum blockchain. ERC standards illustrate a set of rules, regulations, and protocols that a token creator must follow to work with the Ethereum network. These rules cover various aspects, such as token ownership, token transfer function, and smart contract security. By adopting these token standards, token developers can confirm that their tokens are interoperable and exchangeable on the Ethereum network.
In today’s crypto market, there are various ERC standards, including ERC-20, ERC-721, ERC-777, ERC1400, ERC-1155, etc., in the Ethereum blockchain to help with token creation. Among that, each has a specific set of functions and features. Other than this, multiple token standards are available in the Ethereum blockchain to create fungible, non-fungible, and semi-fungible tokens.
Here is the list of the best ERC standards to consider.
Top 10 ERC Token Standards of 2024
As the world becomes more tokenized, knowing the list of top ERC standards is is essential to ensure interoperability, security, and efficiency for both developers and users. The main ERC Token standards of the Ethereum blockchain are:
- ERC-20
- ERC-223
- ERC-721
- ERC-165
- ERC-621
- ERC-777
- ERC-1400
- ERC-884
- ERC-1155
- ERC-6551
What is ERC20 Token Standard?
ERC20 is the The Most Popular Token Standard, utilized for developing tokens on Ethereum. The ERC20 tokens have specific characteristics and are fungible which is the best ERC standards token in the crypto market. Hence, these tokens are interchangeable and can be exchangeable with tokens of the same value. The ERC20 standard has a set of rules and regulations, various functions and features, checking the balance of a token wallet, etc.
Following the rules, blockchain developers create ERC20 tokens compatible with 20 standard fungible tokens and all other Dapps available worldwide. When creating your ERC20 token, you should define the initial token functions like the token supply, token name, symbol, decimal value, and features like mintable, burnable, taxable, deflationary, etc.
The tokens created with the ERC20 token standard have many use cases, including utility tokens, security tokens, and stablecoin creation. The ERC20 tokens mainly created for initial coin offerings are utility tokens, and security token offerings are security tokens. Most startups and entrepreneurs willing to initiate a crypto business choose the ERC20 token standard to raise funds for their business initiation.
If you are curious about creating an ERC20 token, you should approach a reputed ERC20 Token Development company in the crypto ecosystem for immense results.
What is ERC223 Token Standard?
This standard comes to correct the token loss issue in the ERC20 tokens standard. After incorporating the token details of ERC20 tokens in the smart contract, if it cannot handle those tokens, it burns some tokens, and you cannot recover them. ERC223 standard is supposed to avoid this.
Developers can either accept or reject tokens reaching their smart contract addresses. The transfer function will fail if the smart contract is unable to process it and does not burn any tokens. This is slowly emerging and reaching popularity in the crypto space despite the slight discrepancies.
What is ERC721 Token Standard?
The ERC721 Standard is a prominent Ethereum-based token standard that depicts a set of rules for developing unique tokens called non-fungible tokens (NFTs). It is one of the best ERC standards in the Ethereum network. Unlike common crypto tokens, non-fungible tokens cannot be exchanged or divided with any token as each NFT is unique.
The ERC721 Token ensures that each non-fungible token created on the Ethereum network has an individual unique identifier that makes it exceptional and different from other NFTs. It is mainly helpful for illustrating unique things like ownership of a digital asset, collectibles, rare items, and other digital properties on the blockchain. Popular examples of non-fungible tokens created with Ethereum are Cryptokitties, Crypto Apes, Old Bored Yacht Club, etc.
What is ERC165 Token Standard?
ERC165 is the supporting token standard of the ERC721 standard. It mainly focuses on facilitating more efficient relationships between smart contracts and dApps on the Ethereum blockchain network. Developing a standardized smart contract will aid in interoperable dApps and smart contracts.
ERC165 has a specification for holding a single interface, called “supportsInterface” which takes a 4-byte interface ID as input and produces a boolean value denoting the contract that executes the interface. Because of this, a smart contract can interact with all other Dapps with their interfaces and supporting interfaces.
What is ERC621 Token Standard?
ERC621 is a suggested token standard of the Ethereum blockchain that expands the functioning of ERC20 and ERC223 standards. This standard permits token creators to decrease or increase the total supply in circulation. It aids in maintaining the token economy and securing price stability.
Burning ERC621 tokens is possible by sending them to a specified burn address that removes the tokens from circulation permanently. This helps to decrease the token supply, increase the demand, and potentially increase their value in the crypto market.
What is ERC777 Token Standard?
ERC 777 is an eminent ERC standard of the Ethereum blockchain that includes the functionality of ERC20 and ERC223 standards. This was an improved ERC20 standard, thus becoming the renowned standard for creating tokens on Ethereum.
One of the primary advantages of ERC777 over ERC20 is that it encloses a new function called “send” that authorizes more efficient token transfers. In ERC20, two separate transactions happen for token transfers, which might result in enormous transaction fees and long processing time. With ERC777, it is vice versa, token transfers happen in a single transaction thus it is more cost-effective.
What is ERC1400 Token Standard?
ERC1400 is a top-notch security token standard that emerged specifically to create, issue, and trade security tokens. Without this standard, security token offering development is not possible. The ERC1400 standard integrates new and existing token standards intending to create a cooperative framework for all security tokens. It is developed from the ST20 protocol as a flexible and extensible set of standards. To resolve the issues in security token creation, the ERC1400 standard has its origin.
What is ERC884 Token Standard?
ERC 884 is a suggested ERC standard on Ethereum blockchain that expands the functionalities of ERC20 and ERC721 standards. A core advantage of ERC884 is it allows the fractional ownership of various real-world assets, including properties or commodities stored on the blockchain. It can facilitate the creation of new financial investment opportunities that offer greater liquidity and transparency for asset ownership.
What is ERC1155 Token Standard?
ERC1155 Token is a remarkable ERC standard that allows users to create both fungible and non-fungible tokens with a single and same smart contract. Because of a sole smart contract, ERC1155 offers substantial benefits in terms of enhanced flexibility and efficiency.
The main advantage of ERC1155 is that it reduces the maximum number of transactions taken for single tokens. With ERC1155, blockchain developers can make a smart contract that operates both fungible tokens and NFTs, thus reducing the widespread complexity of the dApp.
These ERC1155 Tokens have both fungible and non-fungible token properties as they are semi-fungible. Let us consider a game that will have unique(NFT) items and shareable(fungible) items that can be shared with other players. This ERC1155 token helps many gaming platform developers and Metaverse developers more.
What is ERC6551 Token Standard?
ERC6551 token is a unique token standard built on the Ethereum blockchain, offering advanced features that surpass its predecessors. It is a new ERC standard in the crypto market. While ERC-20 and ERC-721 tokens have gained significant traction, ERC6551 presents a novel approach to tokenization by combining the best aspects of their functionality. With its improved functionality, Create ERC6551 Token can play a crucial role in the crypto world. It is used in Decentralized Finance, Supply Chain Management, Gaming and Collectibles. Ensuring widespread adoption, scalability, and maintaining security standards will be paramount for its success.
ERC6551 introduces several key improvements that make it stand out among the existing token standards. Firstly, it allows for the seamless transfer of assets between different blockchains, enabling interoperability and expanding the token’s reach. Additionally, it empowers token holders with enhanced control over their assets, including the ability to program specific conditions for the transfer and ownership of tokens. These new ERC standards for 2024 will help create a more robust and attractive NFT ecosystem. Each of these standards solves a different problem and provides new features for developers and creators.
If you are interested in Ethereum token development, these ERC token standards will definitely help you get comprehensive ideas for your business.
To wrap up
With this blog, you might have gathered enough regarding the ERC standards. As a startup, you can choose any of the fungible, nonfungible, and semi-fungible Ethereum token standards that will suit your business requirements. We at Coinsclone are veterans in providing Ethereum Token Development Services with rich premium features.
Not only with token development, we offer all other crypto-related services like crypto exchange development, payment gateway development, NFT marketplace development, etc. Anyone can leverage any of the services that best suits your business. For Ethereum token development, approach Coinsclone now and reap enormous revenue in the crypto marketplace!