What Is Ethereum Request for Comment (ERC)?
Ethereum Request for Comment (ERC) standards are technical standards for developing new Ethereum blockchain tokens.
Like Bitcoin Improvement Proposals (BIPs), ERCs are proposals for new protocol changes or standards within the Ethereum network.
The Ethereum community discusses ERCs on Github, and if accepted by the core Ethereum developers and the broader community, they are implemented and released.
ERCs define the rules and specifications for formatting, transmitting data, and determining actions when specific events occur.
An Overview of the Creation Process of an ERC
New ERCs are created by submitting proposals through Ethereum Improvement Proposals (EIPs).
EIPs serve as design documents that provide information about new features or processes to the Ethereum community.
They include technical specifications and the rationale behind the proposed feature.
Developers utilize Ethereum Improvement Proposals to submit new ERC policies.
The community reviews the proposals and expresses opinions in favor or opposition. Once approved by the community, developers proceed with implementing the new ERC.
ERC-20 Is the Most Popular Ethereum Request for Comment Standard
ERC-20 is a widely used ERC standard specifically designed for creating tokens within the Ethereum ecosystem.
It provides developers with rules for token implementation.
ERC-20 gained popularity through initial coin offerings (ICOs) from crowdfunding companies.
Founders of Interoperability
Vitalik Buterin and Fabian Vogelsteller are the creators of ERC-20. It was developed to address the need for a standardized identification of tokens within smart contracts.
The ERC-20 standard ensures that all Ethereum tokens adhere to a common set of rules on the Ethereum blockchain.
With ERC-20, developers can use tokens as building blocks in other smart contracts without worrying about compatibility issues or bugs.
Before ERC-20, each token had its own purpose and function, making it challenging for new projects to interact with other tokens on the Ethereum network.
Another Popular ERC Standard Is ERC-721
The ERC-721 standard allows for the creation of non-fungible tokens (NFTs).
Unlike Ethereum’s native currency Ether and other fungible tokens, each token created under ERC-721 is unique.
This standard enables developers to create a new type of digital asset, particularly for applications like crypto games.