ERC - Ethereum Request for Comment
The protocol for Ethereum smart contracts is called ERC. When designing smart contracts and constructing optimal and effective tokens, developers resort to ERC.
All contracts abide by ERC regulations. because these documents have been optimized and are secure. Additionally, ERC makes it easier for smart contracts to communicate with one another. Knowing a smart contract's ERC protocol gives us a lot of insight about the contract.
EIP - Ethereum Improvement Proposal
Well, we know what Erc is. But who makes these rules? Am I able to create ERC protocols? Ethereum does offer a free development environment and is a decentralized autonomous organization. You can examine it from here.
You can develop a proposal and submit it to the Ethereum DAO if you discover that the ERC protocol is failing. The DAO evaluates your idea, and if it is approved, it becomes a new protocol.
The Most Popular Protocols on Ethereum
The easiest method to explain popular protocols is to use a real-world example. We are now developing a new web-3 war game using the most commonly used protocols. ERC protocols will be used in accordance with the requirements of our game. We now have the chance to create code that is safer and simpler. This is what our game requires:
- Each participant must begin the game with a unique character.
- Players may own multiple weapons, and those weapons must be available for trading.
- Transaction fees should be as low as possible, and all contracts must be optimized.
ERC-20
The most well know ERC is ERC-20. The implementation of this standard enabled ETH to be transferred via smart contracts.
This smart-contract functionality expanded the use case for ETH past basic peer-to-peer transfer (such as Bitcoin). This has led to ETH being a common coin used for decentralized applications (dApps)
Key Characteristics of an ERC-20 Token:
- Fungible token
- Tradable and dividable
- Used for digital currencies
For players to trade in the market as they choose, we used ERC-20. With the ERC-20 token, players may trade and buy weapons and ammunition.
ERC-721
ERC-721 sets the standards for NFTs as we understand them. It allows users to issue unique tokens via smart contracts.
ERC-721 tokens are one-of-a-kind and cannot be divided into sub-parts, meaning a user either completely owns the NFT or doesn’t.
Key Characteristics of an ERC-721 Token:
- NFT token
- tradable and non-dividable
- Used for art, game props, PFPs, and community passes
Each character must be unique. As a result, we opt for the well-known NFT protocol ERC-721. Players can validate their own NFT characters.
ERC-1155
ERC-1155 sets the standards for a smart contract that can handle multiple token types (i.e fungible and non-fungible). This adds functionality to transfer multiple token types at once, reducing transaction costs.
- Multi-token
- Tradable, dividable for fungible, not for non fungible
- Can be used for anything from currency to gaming
With ERC-1155, we can use our weapons and other tools.
Why didn't we use ERC-20 if two bullets are the same? Yes, but each weapon has a separate set of bullets.
So why don't we employ ERC-721? The bullets are the same, right? We are also unable to use ERC-721 since NFT transactions are single and a transfer fee is due each time a lead is used.