What is Ethereum Request For Comment (ERC)?
Let's find out Ethereum Request For Comment (ERC) meaning, definition in crypto, what is Ethereum Request For Comment (ERC), and all other detailed facts.
Essentially, the Ethereum Request For Comment (ERC) is a collection of guidelines for data formatting and transmission. These guidelines also dictate what actions will be taken when a specific event occurs. In the sense that it is used to suggest new protocol changes or standards to the network, it is similar to Bitcoin Improvement Proposals (BIP).
The Creation Process of an ERC
By submitting a proposal through Ethereum Improvement Proposal (EIP), new ERCs are generated. An EIP is a design document that contains details on a new feature or procedure. Complete technical specifications and rationale of the proposed feature must be indicated in this document. Following the submission, the community evaluates the documents and expresses its opinion, whether favorable or unfavorable. Developers create the new ERC once it has received community acceptance.
ERC-20
The most popular Ethereum Request For Comment standard is ERC-20. It's specific to Ethereum token implementation, providing developers with the guidelines they need to generate new tokens within the Ethereum ecosystem.
ERC-20 was developed when Vitalik Buterin and Fabian Vogelsteller needed a way to identify tokens within smart contracts. The ERC-20 standard was established to ensure that all Ethereum tokens follow a consistent set of rules on the Ethereum network.
Developers can use one token as a building block in another smart contract thanks to the ERC-20 standard, which eliminates compatibility concerns and bugs. Each token used to have its unique purpose and function prior to the establishment of ERC-20, making it difficult for new initiatives to communicate with existing tokens on the Ethereum network.
ERC-721
Another well-known ERC standard is ERC-721. It is a standard that allows the creation of non-fungible tokens (NFTs). This means that, unlike Ether or other fungible tokens, each NFT is unique. Developers can use the standard to create new types of digital assets that can be used in various apps, e.g. crypto games.