Ethereum Request For Comment (ERC): Innovating the Network

Ethereum Request for Comment (ERC) is a protocol for developers to make new improvements to the network.

What is Ethereum Request For Comment?

Ethereum Request for Comment (ERC) is a set of technical standards used to develop new Ethereum-based tokens.

Ethereum Request for Comments (ERC) is similar to Bitcoin Improvement Proposals (BIP) in that it is used to propose new protocol changes or network standards. ERCs are discussed in the Ethereum community on Github, then implemented and released if accepted by core Ethereum developers and the wider community.

This is a protocol of rules that define how data is formatted and transmitted, as well as determining what actions will be taken if certain circumstances occur.

New ERCs are created by submitting a proposal via an EIP (Ethereum Improvement Proposal). An EIP is a project document that consists of information related to a new feature or the process of creating it – to provide information to the Ethereum community. It usually presents the full specifications of the feature along with a rationale for its need. Developers use the Ethereum Improvement Proposal to present new ERC policies.

After a feature submission, the community reviews the documents and gives their opinion. If the community approves, developers implement the new ERC.

ERC-20

ERC-20 gained popularity due to crowdfunding companies through ICO (Initial Coin Offering). The creators of ERC-20 are Vitalik Buterin and Fabian Vogelsteller. In order for the Ethereum blockchain to have a common set of rules that all Ethereum tokens will comply with, the ERC-20 standard was created.

Today, thanks to the ERC-20 standard, developers can use one token as a building block in another smart contract without worrying about compatibility issues or bugs. Before ERC-20, each token had its own purpose and function, making it difficult for new projects to interact with other tokens on the Ethereum network.

ERC-721

The ERC-721 standard allows the creation of non-functional tokens (NFT). Each token is unique, unlike Ethereum’s native currency, Ether, or other interchangeable tokens. ERC – ERC-721 allows developers to create a new type of digital asset that, for example, can be used in applications such as cryptogames.