What is ERC-827?
Let's find out ERC-827 meaning, definition in crypto, what is ERC-827, and all other detailed facts.
ERC-827 is an Ethereum-based token standard that provides updates to the older ERC-20 token. The ERC-20 standard only allows values to be exchanged. ERC-827 improves on these limitations by allowing Ethereum users to transmit both data and currency. Tokens can also be authorized to be spent on other third-party companies on the Ethereum blockchain.
The ERC-827 token standard serves as an extension of ERC-20 and enables users to complete transactions by utilizing the success of a recipient contract mechanism. Alongside the standard functionalities of ERC-20, ERC-827 also offers transferAndCall, transferFromAndCall, and approveAndCall functions.
The additional _data parameter functions similarly as ERC-677 while also using a fallback method. If the function provided in the _data parameter is returned as true, the transaction is initiated.
The ERC-827 is used for the development of third-party apps on the Ethereum blockchain. One of its direct competitors for general adoption is another Ethereum-based standard, ERC-223.
Both ERC-827 and ERC-223 deal with the same functionality issue of ERC-20 and allow users to transfer tokens and data to smart contracts. This helps prevent the loss of tokens that are accidentally transferred to smart contracts instead of cryptocurrency wallets.
ERC-827 was utilized by Zeppelin in its open-source contracts, giving it more exposure than ERC-223.
The ERC-827 standard can be explained via the concept of a digital shopping cart. The customer places any desired items in the shopping cart. However, they cannot pay for the items without a sufficient amount of tokens in their wallet.
If someone transfers the customer tokens, the transaction data triggers a function within the smart contracts that checks whether the customer has enough balance in their wallet to pay for the items in the cart.
ERC-827 improves some of the flaws of ERC-20 while maintaining full compatibility with the older standard. It is likely that ERC-827 will be more widely adopted due to its advantages over ERC-20 and ERC-223. The adoption of ERC-827 would allow users to retain their ERC-20 tokens while also utilizing the improved functionalities of the new standard.