ERC 20, ERC 223, ERC 827 and ERC 721 Token Development - Smart Contracts
Ethereum based tokens which can be bought, sold, or traded, have become the backbone of Ethereum ecosystem, innovative companies use them as internal currencies within their ecosystem.
ERC stands for Ethereum Request for Comment. Every open source community needs a proposal request-approval system to accept revolutionary changes put forward by its users and improve itself. ERCs serve this purpose for Ethereum, they include some technical guidelines elaborating suggestions about development of the Ethereum network.
ERC 20 is the most well-known among all the standards present within the entire crypto community, and most tokens issued on top of the Ethereum platform use it. Helping developers to accurately predict how new tokens will function within the larger Ethereum system.
6 Types of ERC Token Standards
This is the most well-known and commonly used standard among all the other token standards. Almost all the ICOs so far have issued their tokens as per this standard. The primary advantage of using these tokens is that any other application or smart contract can interact with a token in a standard manner without needing additional details of the token.
Hence, it is very easy to create several tokens and they all interact with each other in a standard way as if they are all same. It is very useful when a developer wants to add extra tokens, he won’t have to go through the customization rather the knowledge of Ethereum token standard will do the trick.
This particular token standard has been designed individually by a developer in a bid to resolve the issues currently faced with ERC-20 standard. It makes possible to avoid the accidentally lost tokens inside the contracts which are not meant to work with the assigned tokens. Although, these accidental transfers, which are already rare, will most probably cease to happen with ENS in the future. Another merit is the less consumption of gas in ERC-223 as compared to ERC-20.
ERC-223 has not become a token standard yet, it is a proposal right now which is being mulled upon by the Ethereum community. As a result, it hasn’t been implemented into the production tokens yet and exchanges may have to modify before making use of this token standard.
This token standard is also a proposal so far, the basic purpose of which is to create a non-fungible token. In the other standards, tokens are fungible which means they exchangeable or equal to another unit. This is a problem only when you want to assign a different price to some tokens or want them to be different from others. In case you are investing these tokens in different areas of business, for example, you allot 100 tokens to electricity and 100 to real estate, you will probably have assign them different prices as the value of businesses may vary. This token standard will make the business investment very easy for traders.
Many a times, developers faced issues in increasing and decreasing the supply of tokens, as there is was no such standard to limit the amount of supply. This particular token standard aims to achieve that, it adds two basic functions i.e. “increasesupply” and “decreasesupply”. These functions will help developers to regulate the supply. All the other standards allow the replication of tokens in a boundless fashion, this token standard will help limiting the supply without ceasing the supply altogether.
This token standard grants holder, the authority of limiting the usage of tokens by a third party. All the transfers and allowances will be granted by the holder of tokens. There were some instances of inordinate usage of tokens by third party web wallets and exchanges, this standard will prevent such instances and grant the holder full and uncompromised authority of the tokens. This is also a proposal yet just like the other standards and will probably be ordained in near future.