Understanding The Concept Of Ethereum Token Standards
If you are familiar with cryptocurrency then it's most likely that you already have an idea about tokens. Speaking about tokens, Ethereum is a currency token which is used to exchange value. This cryptocurrency token was given life shortly after the launch of bitcoin. While bitcoin might seem complicated, Ethereum raises the bar in the crypto market. Each time a fresh blockchain and smart contract application is created on the Ethereum platform, a fresh to the scene token is created. This process has led to the birth of various ERC tokens with the eldest being the ERC 20 token. Subsequent tokens have been a continuous improvement on the ERC 20. To enable you understand Ethereum much better, this article seeks to discuss some of the Ethereum tokens that have been created over time.
ERC 223 Token:
The ERC 223 token was created as an improvement upon its predecessor the ERC 20. While the ERC 20 has impressive features, it is far from satisfactory. For instance, when users unintentionally sent their token to a smart contract through the method designated for transferring tokens into an ordinary wallet, then such tokens automatically became lost and irrecoverable.
This shortcoming, therefore, led to the overall forfeiture of ERC 20 tokens valued at more than three million dollars. Going on, ERC 223 was created to solve the shortcomings of ERC 20. For starters ERC 223 gave investors the avenue to transfer their tokens to smart contacts or wallets using a single method. These transfers are also created to require a single step. The resulting effect is the fact that not only is your token preserved, but ERC 223 token transfers are also fifty percent more affordable than ERC 20. Furthermore, while the ERC 223 token is programmed to solve its predecessors complications, it still maintains its original functionality. Considering the merits of this token, it is safe to assume that this token may one day replace the ERC 20 in suitability and functionality.
ERC 721 Token:
ERC 721 became popular when cryptokitties the Ethereum platform collectible game came to limelight in 2017. What separates this token from ERC 20 and other tokens on the Ethereum platform is the fact that it gives developers the avenue to create non-fungible tokens. These Non Fungible Tokens tokens can be valued at a higher price than other tokens that are exchanged on the same ecosystem or platform. What's more, the NFTs are great for creating tokens from peculiar individual assets. Such assets can be vintage wine, works of art, real estate’s etc. Although the NFT was brought to fame by crypto kitties, it currently boasts of numerous applications that go beyond digital gaming. Anything from artworks to tickets for a music show can be effortlessly transferred using the Ethereum blockchain. The possibilities of ERC 721 are mind-blowing unlike any other.
ERC 777 Token Standard (Everett Muzzy):
The ERC 777 token is largely similar to the ERC 220 token in that it was developed to correct the flaws in ERC 20 which led to the loss of tokens valued at three million dollars. While large similarities may exist, there are still points of divergence between the ERC 777 and the ERC 223 token. The latter includes a much larger number of transaction handling machines. What's more, ERC 777 makes use of a central registry to enable the importance of smart contract easily to be easily known. What’s more it improves the transferability of ether by creating a send function. Another major advantage of this token is the provision it creates for certified operators. This basically means that individuals can give these operators the required backing to transfer for them. This makes the ERC 777 more custom made than preceding standards.
ERC 820 Token:
Taking into consideration the concept of ERC 20 tokens and the extent of its functionality, it is safe to say that the ERC 820 has made a notable improvement in the Ethereum network. Its major upgrade is the smart contracts registry. The registry makes it a hitch-free process for anyone to analyze the address of a smart contract and examine the functions that such address supports.
ERC 827 Token Standard:
This fresh to the cryptocurrency scene token has come a long way from the ERC 20 token. It seeks primarily to enhance the execution abilities of ERC 20 tokens in endorsement and exchanges. Presently, ERC 20 requires a minimum of a hundred lines of code to execute, ERC 827 intends to reduce the number of lines significantly. What’s more, ERC 827 enables the effortless transferability of both data and value such as money, shares, and equity. By virtue of this ease of transfer, tons of applications are being launched on the blockchain technology. Following this development, this token standard undisputedly has impressive potentials.
ERC 884 Token (Dave Sag):
The ERC 884 token is one that was birthed in April 2018 and had since then shaken things up in the Ethereum ecosystem. This token standard permits the development of ERC 20 tokens. For every token that's created, a Delaware corporation share is issued.
This token is specially formulated to represent equity made available from Delaware corporation. Firms who engage in the use of ERC 884 token can raise capital through initial public offerings or through private equity sale in a way that does not breach the provision of Delaware corporation law. However, in doing so, such firms can dispense with a custom share registry and an orthodox stock exchange. Furthermore, the ERC 884 mandates that Ethereum token owners must verify their identity before making use of it. Therefore, whoever uses this standard must be regarded as a whitelist client.
ERC 948 Token Standard (Marko Vidrih):
The ERC 948 token standard arrives as a means of implementing subscription-based transactions. In simpler terms, a smart contract would be developed to withdraw tokens from users who must have consented to the contract in the first instance. This contract would be more like an opt-out feature for users. That said, this latest concept can definitely open up a lot of potential cases that would revolutionize the Ethereum ecosystem.
On a final note, Ethereum currently possesses over a hundred thousand token contracts. In line with that, the creation of tokens on the platform is undisputedly fast paced. While some of these tokens may revolutionize the world and cryptocurrency as we know it, some of these standards would definitely be valueless in the nearest future.