Overview
What Are Ethereum Token Standards?
Ethereum token standards are sets of rules and protocols that define how new tokens are created, issued, deployed, and interacted with on the Ethereum blockchain. To successfully launch a token on Ethereum, developers must adhere to these standards.
The most common Ethereum token standards include:
- ERC-20: The foundational standard for fungible tokens.
- ERC-777: An advanced fungible token standard with enhanced features.
- ERC-721: The standard for non-fungible tokens (NFTs).
- ERC-1155: A multi-token standard supporting both fungible and non-fungible tokens.
Why Are Ethereum Token Standards Important?
Before smart contracts, creating a new cryptocurrency required complex methods such as:
- Building a new blockchain from scratch (e.g., Ethereum).
- Forking existing blockchain code (e.g., Litecoin from Bitcoin).
- Hard-forking an existing network (e.g., Bitcoin Cash from Bitcoin).
👉 Discover how Ethereum revolutionized token creation with the introduction of ERC-20 in 2015, simplifying the process and fueling the explosive growth of decentralized applications (dApps). Today, Ethereum remains the leading platform for token issuance, powering over 90% of new tokens at its peak.
Common Ethereum Token Standards in the Crypto Market
Since 2015, Ethereum has released several token standards to accommodate evolving use cases. Below, we break down the key differences between them.
ERC-20: The Foundation of Fungible Tokens
ERC-20 (Ethereum Request for Comments 20) is the original token standard for fungible assets. It defines core functionalities like:
- Transfers: Send tokens between Ethereum addresses.
- Balance checks: View token holdings and transaction history.
- Interoperability: Tokens can interact with other smart contracts.
- Total supply: Query the circulating supply of a token.
Popular ERC-20 tokens include Chainlink (LINK), Tether (USDT), and Uniswap (UNI).
ERC-777: The Upgraded Fungible Standard
ERC-777 improves upon ERC-20 with features such as:
- Data attachments: Include messages with transactions.
- Operator permissions: Delegate token-spending authority.
- Gas flexibility: Pay fees in multiple tokens.
- Enhanced metadata: Support for dynamic use cases.
However, due to security risks, ERC-777 adoption remains limited.
ERC-721: The NFT Standard
ERC-721 enables non-fungible tokens (NFTs), characterized by:
- Uniqueness: Each token is distinct (e.g., CryptoKitties, Bored Apes).
- Ownership transfers: Securely trade NFTs.
- Rich metadata: Embed images, videos, or descriptions.
- Programmability: Integrate with auctions, games, and more.
👉 Explore top NFT projects built on ERC-721, including ENS domains and art collections.
ERC-1155: The Multi-Token Standard
ERC-1155 combines the best of fungible and non-fungible tokens:
- Batch operations: Transfer multiple token types at once.
- Efficiency: Reduce gas costs for complex transactions.
- Flexibility: Deploy hybrid tokens (e.g., in-game items).
Conclusion
Ethereum's token standards have shaped the crypto ecosystem, from DeFi (via ERC-20) to NFTs (via ERC-721). As blockchain technology evolves, these standards continue to drive innovation.
FAQs
Q: Which popular tokens use the ERC-20 standard?
Examples include USDT, UNI, AAVE, and LINK.
Q: What are some famous ERC-721 NFTs?
Notable projects include Bored Ape Yacht Club, CryptoPunks, and ENS domains.
Q: How does ERC-1155 differ from other standards?
It supports both fungible and non-fungible tokens in a single contract, optimizing gas fees and usability.
Disclaimer: This content is for educational purposes only and not financial advice. Always conduct independent research and consult a professional before investing.