ERC token standard – What they are and what types there are.

The ERC token standard is a mechanism in the Ethereum community to define and specify standards so that tokens defined with those standards have common properties and are interoperable. In this way many components and tools can be reused.

What are ERC tokens.

A token is a unit of value that can be used within a blockchain network. Tokens are usually issued by an organization or company and can represent a variety of things, such as a cryptocurrency, a financial asset, a vote in a collective decision or a guarantee of access to a service or product. The tokens are often issued in an initial coin offering (ICO) and can be exchanged on cryptocurrency platforms or used within a specific blockchain network such as Ethereum. The Ethereum platform has defined ERC (Ethereum Request for Comments) standards for the different types of tokens. ERC is a mechanism in the Ethereum community to define and specify standards so that tokens defined with those standards have common properties and are interoperable. In this way many components and tools can be reused. Let's review the most popular ERC token standards that we can use on the Ethereum network:

ERC-20 Tokens.

ERC-20 is a technical standard used by most Ethereum tokens. This standard defines how tokens should function on the Ethereum network, including how they should be transferred and stored. The ERC-20 tokens are interoperable, meaning they can be used and exchanged on any application or platform that complies with this standard. Additionally, this allows developers create tools and services that are compatible with a wide range of ERC20 tokens. An ERC-20 token is made up of various technical elements, including:

• A smart contract code written in the Solidity programming language that defines the logic and rules of the token.
• A contract interface that defines the functions and events that must be implemented by the contract code.
• A unique identifier of the token, which is known as its “address” on the Ethereum network.
• A name and symbol of the token.
• The total number of tokens in circulation.
• A feature that allows tokens to be transferred from one address to another.
• A function that allows you to check the token balance of a given address.

It is difficult to determine with certainty how many ERC20 tokens exist on Ethereum, as it is a decentralized network and there is no central authority that keeps track of all tokens in circulation. There is also some contracts that can represent several different tokens or one itself can be used to create multiple tokens.

ERC-721 Tokens.

ERC-721 tokens They are a type of token called non-fungible (NFT Tokens), this means that they are unique in the sense that each one of them is different from the others. This makes them ideal for represent unique digital assets, such as a work of digital art or a character in an online game. To use ERC-721 tokens, a smart contract that issues them must first be created. Once the contract is in place, ERC-721 tokens can be issued and transferred between Ethereum accounts safely and transparently. 

 

ERC-777 Tokens.

these tokens They are an improved version of ERC-20 tokens y offer greater flexibility and security. These tokens are based on blockchain technology and are used to represent digital assets and carry out secure and transparent transactions with them. One of the most interesting aspects of ERC-777 tokens is that offer greater flexibility than ERC-20 tokens. For example, ERC-777 tokens allow users to set custom rules for transactions and set time limits for transactions. Besides, ERC-777 tokens also offer greater security than ERC-20 tokens, as they avoid some of the problems that can arise with ERC-20 tokens, such as losing tokens when sending them to a contract that is not prepared to receive them

 

ERC-1555 Tokens.

ERC-1155 tokens are a type of token on the Ethereum blockchain that allows users store and transfer multiple types of tokens within a single contract. This is different from other types of tokens, such as ERC-20 or ERC-721, which only allow the storage and transfer of one type of token. This type of token has become popular due to its ability to store and transfer various types of tokens within a single contract. This makes it easier and more efficient for users to manage their tokens, as they do not have to interact with several different contracts to manage different types of tokens. Additionally, ERC-1155 tokens allows the implementation of "multiple operations", meaning that users can perform multiple operations, such as transferring different types of tokens, in a single transaction. This increases efficiency and reduces transaction costs on the blockchain.

 

ERC-4626 Tokens.

ERC-4626 is a standard for optimize and unify the technical parameters of the “yield-bearing vaults”. Provides a standard API for tokenized yield-bearing vaults that represent shares of a single underlying ERC-20 token. ERC-4626 also offers an optional extension for token vaults using ERC-20, offering basic functionality for deposit, withdraw tokens and read balances. This type of token has an optimal application in lending markets, aggregators and interest-bearing tokens. These help users to find the best performance for your crypto tokens through the execution of different strategies. These strategies are performed with slight variations, which can lead to errors or wasted development resources.