Top 5 Ethereum Token Standards

What is Ethereum Token Standard?

The term ERC represents Ethereum Request for Comments. ERC is just a application level guidelines for Ethereum based tokens, registries etc. Common ERC standards represents a list of rules that the Ethereum based tokens must comply with. These rules are accepted by the Ethereum community only after getting it verified by the EIP.

This Ethereum Implement Proposal (EIP) is a process that verifies the rules enlisted in those ERC standards. Once the EIP finalizes the document, then the developers can create tokens based on that standard.

Below listed are some of the popular ERC Token Standards,

• ERC-20
• ERC-721
• ERC-1155
• ERC-777
• ERC-223

ERC-20:

ERC-20 is the most popular token standard since 2015. Several ICOs have deployed their tokens in the Ethereum platform using this standard. This is a fungible token standard that is commonly used for all smart contracts and token implementation on Ethereum Blockchain. These ERC20 based tokens are digital assets that can be distributed on the Ethereum network rather than their own blockchain.

In 2018, a large number of ERC20 tokens have been issued to raise funds for an emerging Blockchain venture, thus boosted the Blockchain industry. Even now this standard is considered to be a significant tool for Ethereum and Blockchain industries.

ERC-721:

This standard is widely used for non-fungible tokens. This standard makes it easy for anyone to build a token on Ethereum platform. The tokens built on ERC721 standard are unique. Hence these are considered as collectable.

The main use case of ERC721 tokens is to represent the ownership over digital as well as real world assets like property, art, land etc.

ERC-1155:

ERC-1155 is a unique standard that supports both fungible and non-fungible tokens. This ERC1155 standard is now considered as the most advanced non-fungible token standard as it solves the major issues faced in the former best non-fungible token standard ERC721. Using ERC1155 various NFTs can be created in a single contract. Unlike in ERC721, here the gas fees has been cut out almost 90%, thus making it more affordable for anyone to mint an NFT.

ERC-777:

‌ERC777 standard is mainly used to address the limitations of ERC20. These standards have introduced the concept of operators. These operators have permission to execute specific tasks such as to send and burn tokens on behalf of other token holders. It also allows a token holder to reject an incoming token that comes from a blacklisted address. The benefit of using such operators is that an user is no longer required to worry about transaction fees, as it now being assigned to these operators.

ERC-223:

This standard is commonly used to fix some of the user interface issues that are in the other ERC tokens. It gives the developers a choice to either accept or decline tokens that arrives at their address. This prevents a token from being lost in an invalid transaction. Hence, if a transaction fails, the tokens won’t be burned, so that no funds will be lost.

Apart from these token standards there are a wide range of effective token standards that are being used in the Blockchain industry such as ERC621, ERC827, ERC884 and many more. As the leading Token Development Company, SecurityTokenizer has developers who are experienced in creating tokens on all these above mentioned token standards. If you are planning to launch your own token, then reach out to us. Here we can create your tokens in any Ethereum based Token standards as you require.