What Exactly is ERC in Ethereum?
ERC, short for Ethereum Request for Comment, is like a rulebook for smart contracts on the Ethereum blockchain. It sets the guidelines and standards for the creation and the management of tokens on the Ethereum blockchain.
It's kind of like having a common language that allows different parts of the Ethereum network to understand each other.
This is important because it helps create a more connected and compatible ecosystem where everything can work together seamlessly.
Now the question is who set this guidelines and standards?
ERC guidelines and standards in Ethereum are developed collaboratively by the Ethereum community. Instead than being dictated by a single authority, Ethereum Improvement Proposals (EIPs) are submitted by developers, researchers, and community members.
These suggestions are freely debated, and conclusions are reached through community consensus. This decentralized method ensures that ERC guidelines and standards reflect the Ethereum community's combined input and expertise, making it a collaborative and inclusive project.
Do you know there are multiple ERC Standards proposed and adopted in the Ethereum ecosystem?
there are multiple ERC standards that have been proposed and implemented within the Ethereum ecosystem, and it's important to know that the development of ERC standards is an ongoing process.
If you want to stay in the loop and get the best insights, I recommend checking out the official Ethereum Improvement Proposals (EIPs) repository by visiting this link: https://eips.ethereum.org/
Let's take a closer look at two of the most important ERC standards and their contributions to the Ethereum network:
This is the most widely adopted token standard in the Ethereum ecosystem. It defines a set of rules for creating fungible tokens, which means that each token is identical and can be easily exchanged with other tokens of the same type, here we talk about the tokens you can find in exchanges to trade.
ERC-20 tokens have found numerous real-world use cases across various industries, like in gaming, Fundraising and Token Sales, Loyalty and Reward Programs, Supply Chain Management and many other use cases.
ERC-721 introduces a non-fungible token (NFT) standard. NFTs are like digital certificates that prove you own a unique digital assets and that it's authentic. Using ERC-721, developers can create unique tokens such as digital artwork, collectibles, and in-game assets. This standard enables users to enter the world of unique and precious digital assets.
This standard has revolutionized the world of digital ownership, paving the way for exciting use cases like owning Digital Art, Collectibles and game assets, intellectual property rights for digital content, verifying qualifications, diplomas, memberships, or licenses in a secure and tamper-proof manner and many many other use cases.
In summary, ERC standards make Ethereum better and let people build all kinds of cool stuff on the blockchain, like tokens, DeFi, NFTs, and games. thanks to the community working together, the ERC standards will continue to shape the future of Ethereum ecosystem, offering limitless possibilities for developers, businesses, and users.