Ethereum provides many  use case in the crypto space. Token assets has become one of the most important feature in an  ethereum ecosystem. Ethereum act as a base line in crypto spac as all the DAPPs  are build under the Ethereum blockchain by creating  a seperate and suitable token standard according to their blockchain project.Besides smart contract  are function by token where token act as a fuel to carry out the transaction.

What is an ERC token

ERC stands for Ethereum Request comment. It is the Backbone in Ethereum ecosystem.ERC inculdes a  technical guildeline for the build out of ethereum network.

In order to create a standard for Ethereum,  developers submit an Ethereum  improvement proposal(EIP) which includes a contract standard. Once an EIP is approve it will become an ERC.

Each ERC token standard serves different function according to the project they are based on. ERC token are used as currencies, as a collectible virtual items, and is also used as an exchange medium by listing on various  exchange platform.

Types of ERC and its role in Ethereum network

There are variuos type of ERC token but here i will be talking about 8 most popular ERC token.

• ERC20 token

ERC20 is the most popular and commonly used ERC token in crypto space.ERC20 is also the most commonly listed token type in all the exchange platform. It was proposed in 2015 but latter formalised in 2017. It came along with 6 types of smart contract function

totalSupply() function- To determines the total amount of tokens to be  created within a given project.

transfer() function- To initiate the initial coin offering(ICO) to user wallets. 

transferFrom() function- to enable the exchange of token between deifferent token holders.

balanceOf() function- to  track  the  token balance in each user wallet.

approve() function- to restrict the number of token to certain limit without creating any additional toke 

allowance() function - To verify the validity of transaction before adding to the blockchain.

ERC20 token can be used for crowd fuding, selling or buying in exchange, execute smart contract etc. But ERC20 has certain flaws on its protocol.

• ERC223

ERC223 was introduced to sovled the issued face by ERC20 token. Even though ERC20 is the most popular token in crypto space it has certain faws. When we mistakenly made  transaction of ERC20 token in a wrong address then the toke will be lost forever. And it cannot be traced back . This problem had cost over 3 million worth of ERC20 token. 

And ERC223 cover up this flaws by allowing users to transfer tokens to a smart contracts with the same function preventing the accidental lost of token inside the smart contract.  It also save gas fee for making a transaction by reducing the transfering steps to only one rather than two as in ERC20. Thus improving the eficiency of the smart contract. Besides ERC20 is also  backward compatible with ERC20.

• ERC721

ERC721 is a nonfungible token. It is based on the concept where token holder can differentiate two token. Which means each token is unique and are not smillar. ERC721 token became popular when it was applied to one of the most popular blockchain game cryptokitties. Where each kitties have  unique gene and posses it own characters and trait.

This token can also be use to represent real estate object, intellectual property right etc. One of the most common area of using ERC721 in  in blockchain based gaming platform. Where developers used this to create  any ingame items like sword ,armours,guns etc. 

• ERC1155

In order to curb the problem face by  ERC-20 and ERC-721 of requiring a separate contract to  deployed for each fungible  and nunfungible token ERC1155 was introduced. ERC1155 allows to manage multiple token at a time which helps in saving gas fees and more importantly enables the game developers tp develope any fungible, nonfungible and semifungible token using a single smart contract.  This token is mainly used in Enjin ecosystem by many game developers.

• ERC777

ERC777 is another standard to improve the ERC 20 token. Basically it is designed to perform three thing. First to allow operators to send or move token on their behalf  and allows users to control over the token. Secondly it allows sending or transfer of Ether by itself. And thirdly  it allows minting an burning of token. But still there no information about the uses area of this token.

• ERC827

ERC827 is designed as a challenge to the ERC223 and ERC20 tokens. It also solves the same problem of ERC20 which was solved by ERC223. But it aims to improve the workings of ERC20 tokens by offering flexibility in data tranfer along the smart contract and execute them.Besides it also allows any Ethereum token to be reuse by other application.

• ERC1337

ERC1337 is designed to enable interoperability of wallet by  allowing wallets to sign into recurring payment contracts and providing appropriate UI for managing and cancelling subscriptions.

• ERC621

It is an extention of ERC20 token. It includes two more function of increasing and decreasing of the token supply. It is designed to allowed  modification in the  total supply of token.

Conclusion

Even though ERC20 is them most popular and commonly used Token standard  in Ethereum ecosyatem.The comendable feature of ERC223 and ERC777 could some time replace ERC20 token.Besides there are many upcoming token contract which could cover most of the flaws occurs in currently available token standard.