EIP & TOKEN STANDARDS:
EIP stands for Ethereum Improvement Proposal. It is a formal proposal to make changes to the Ethereum network including its core protocol, virtual machine, smart contract standards, client APIs, and more. Anyone can submit an EIP, but they typically come from Ethereum developers, community members, or organizations.”
Once an EIP is proposed, it undergoes a review process by the Ethereum community. The EIP is discussed, analyzed, and debated by Ethereum developers and other stakeholders, including miners, dApp developers, and investors. The goal of this process is to reach a rough consensus on whether the proposed change is desirable and feasible.
If the EIP is approved, it can be implemented by the Ethereum developers in a future update to the network. The implementation can take the form of a hard fork, which is a major upgrade that requires all nodes on the network to update their software, or a soft fork, which is a less drastic upgrade that only requires some nodes to update.
Types of Proposals in EIP:
Core EIPs: changes to core protocol including consensus mechanism ,block validation,
Networking EIPS: p2p networking, network routing etc
Interface EIPs: APIs wallet interfaces.
ERC : token standards or smart contract standard, NFTs
Meta EIPs: changes to EIP process itself, changes to submission and review process, etc.
In cryptocurrency, a token standard refers to the set of rules and specifications that govern the creation and functionality of tokens on a blockchain platform. Some of the most common token standards in cryptocurrency include:
ERC-20: This is the most widely used token standard in the Ethereum ecosystem. It defines a common set of rules for tokens to follow, allowing them to be easily traded and managed on the Ethereum network.
ERC-223: This is a token standard that is designed to be more secure and efficient than ERC-20, as it eliminates the risk of lost tokens due to incorrect transfers.
ERC-721: This is a non-fungible token (NFT) standard that allows for the creation of unique, one-of-a-kind tokens. This standard is often used to represent digital art, collectibles, and other unique assets.
ERC-1155: This is a token standard that allows for the creation of both fungible and non-fungible tokens within the same contract. This can be useful for creating more complex token ecosystems.
ERC-777: This is a token standard that builds on ERC-20 and provides additional functionality, such as the ability to send tokens with data attached.
ERC-1400: This is a token standard that provides a framework for security token offerings (STOs) and compliance with securities regulations.
BEP-20: This is a token standard for the Binance Smart Chain, a high-performance blockchain network developed by the Binance exchange. BEP-20 tokens are designed to be highly compatible with the Ethereum ecosystem and can be easily traded on the Binance platform.
TRC-20: This is a token standard for the TRON network, designed to provide compatibility with the Ethereum ecosystem and allow for the creation of tokens that can be traded on the TRON network.
Omni Layer: This is a token standard that runs on top of the Bitcoin blockchain, allowing for the creation of tokens that can be traded and managed on the Bitcoin network.
Above mentioned token standards are some of the most widely used in cryptocurrency, but there are others as well. The choice of which token standard to use depends on various factors, such as the specific needs of the token, the underlying blockchain platform, and the goals of the project.
Hello, this is Zohaib.
I'm a certified cryptocurrency expert and professional banker with over 17 years of experience in trade finance and corporate banking. With a passion for technology evangelism and a drive to help people understand complex digital products, I have dedicated myself to providing clear and concise explanations of emerging financial technologies such as cryptocurrencies, blockchain, and other innovative financial products. Through this platform, I seek to share my knowledge and insights with others, helping them to navigate the rapidly evolving landscape of digital finance.