ERC, which stands for Ethereum Request for Comment, refers to a set of technical documents used by developers to propose improvements and standards for the Ethereum network. These documents cover a wide range of areas, including token standards, registries, libraries, and package formats. Since Ethereum is an open-source protocol, anyone with proficiency in Solidity (Ethereum’s primary programming language) can draft and submit an ERC proposal. However, not all proposals are accepted—authors must present their ideas clearly to the community and build consensus around their utility and security.
Major Types of ERC Standards
Several ERC standards have gained widespread adoption and serve as foundational elements within the Ethereum ecosystem.
ERC-20
ERC-20 is one of the most widely used token standards on Ethereum. It defines a common set of rules that fungible tokens must follow, such as how tokens are transferred, how transactions are approved, and how data is accessed. This standardization allows tokens to be easily exchanged and integrated into wallets, decentralized applications (dApps), and exchanges.
ERC-721
ERC-721 is the standard behind non-fungible tokens (NFTs). Unlike fungible tokens, each ERC-721 token is unique and cannot be replaced by another token. This uniqueness makes ERC-721 ideal for representing ownership of digital art, collectibles, real-world assets, and other one-of-a-kind items.
ERC-777
ERC-777 is designed as an improved version of ERC-20, offering more advanced features such as enhanced transaction handling and operator permissions. However, it is less commonly adopted due to potential security risks, including a higher susceptibility to certain types of malicious attacks compared to ERC-20.
Benefits of Using ERC Standards
ERC standards bring multiple advantages to developers, users, and the broader Ethereum network:
- Accelerated Development: By providing reusable and thoroughly tested code templates, ERC standards allow developers to build applications faster and more efficiently.
- Interoperability: Tokens and smart contracts that adhere to ERC standards can seamlessly interact with other Ethereum-based applications, including wallets, decentralized exchanges, and DeFi platforms.
- Enhanced Functionality: Some ERC standards enable advanced capabilities, such as integrating oracles—services that feed real-world data into smart contracts—making dApps more powerful and user-friendly.
Frequently Asked Questions
What does ERC stand for?
ERC stands for Ethereum Request for Comment. It is a formal process for proposing and standardizing new features or improvements within the Ethereum ecosystem.
What is the most commonly used ERC standard?
ERC-20 is the most widely adopted standard, especially for fungible tokens like utility and governance tokens. Its simplicity and compatibility make it a popular choice.
Can anyone create an ERC standard?
Yes, anyone can draft an ERC proposal. However, acceptance depends on community support, technical soundness, and the proposal’s overall value to the network.
What is the difference between ERC-20 and ERC-721?
ERC-20 is for fungible tokens, meaning each token is identical and interchangeable. ERC-721 is for non-fungible tokens (NFTs), where each token is unique and holds distinct value.
Are ERC standards only for tokens?
No. While token standards are the most well-known, ERCs can also define other types of standards, such as interfaces for smart contracts, library formats, and more.
How do I choose the right ERC standard for my project?
Your choice depends on your project’s goals. Use ERC-20 for traditional tokens, ERC-721 for unique digital assets, and more specialized standards like ERC-1155 for hybrid tokens. Always consider security, functionality, and community support.
ERC standards play a critical role in maintaining Ethereum’s flexibility, security, and innovation. By offering shared templates and protocols, they reduce development overhead and encourage broader participation in the decentralized ecosystem. Whether you're building a new dApp or issuing a token, understanding these standards is essential. 👉 Explore advanced Ethereum development tools to enhance your project’s capabilities.