web3-starter-sol

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mvonsteinkirch fb77004daf add_files		2022-12-24 20:32:16 -08:00
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erc20.md	add_files	2022-12-24 20:32:16 -08:00
erc721.md	add_files	2022-12-24 20:32:16 -08:00
erc777.md	add_files	2022-12-24 20:32:16 -08:00
README.md	add_files	2022-12-24 20:32:16 -08:00

ethereum token standards

EIP stands for Ethereum Improvement Proposals.
ERC stands for Ethereum request for comments (technical documents written by Ethereum developers for Ethereum community).
Each such document contains a set of rules required to implement tokens for the Ethereum ecosystem.

In the case of ERC20, a transaction sending ether to an address changes the state of an address.
- a transaction transferring a token to an address only changes the state of the token contract, not the state of the recipient address.
one of the main reasons for the success of EIP-20 tokens is in the interplay between approve and transferFrom, which allows for tokens to not only be transferred between externally owned accounts (EOA).
- but to be used in other contracts under application specific conditions by abstracting away msg.sender as the mechanism for token access control.
a limiting factor lies from the fact that the EIP-20 approve function is defined in terms of msg.sender.
- this means that user’s initial action involving EIP-20 tokens must be performed by an EOA.
- if the user needs to interact with a smart contract, then they need to make 2 transactions (approve and the smart contract internal call transferFrom), with gas costs.