web3-starter-sol/token_standards

ethereum token standards

tl; dr

• 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.

---

erc-20

• 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.

---

in this dir

• ERC20
• ERC777
• ERC721

---

resources