Ethereum gained the nickname "blockchain in the blockchain" because its design allowed the project to build dApps and create its own tokens on top of the Ethereum main blockchain. In addition to the top 5 Ethereum innovation standards (the most popular of which is ERC20), there are other standards. This design carries most of the digital currency that exists today.
During the ICO boom, most of the blockchain projects we saw were based on Ethereum's innovative token standards. However, this has some consequences, some are good and some are not very good.
During this time, almost anyone can easily turn their ideas into tokens and start crowdfunding projects. This led to the launch of some insincere projects that later disappeared with the funds of the masses. Others who take their work seriously and eventually create their own native blockchain will begin the practice of token exchange. This involves replacing the original Ethereum-based token with the main web token.
In any case, so far, in this industry, the benefits of this innovation are still more than the disadvantages. Today, many tokens that promote beneficial projects in the industry are based on Ethereum. In addition to their respective solutions, these tokens play a key role in simplifying the complex blockchain industry and raising mainstream awareness. Therefore, we will now carefully study the top 5 Ethereum innovation standard tokens on the market today.
- ERC1155
A widely used industry standard for Ethereum is the gaming industry. The complexity of the game and the constant need for updates in the system make it necessary to use flexible protocols as the backbone of the industry.
The ERC1155 Innovative Token Standard is a standard designed to meet the needs of the gaming industry. This is an alternative, semi-alternative and irreplaceable variety. This makes it possible to process the entire system on a smart contract.
- ERC998
This is another type of irreplaceable token with its own uniqueness. It is a newer standard that combines elements of other existing token standards.
It is full of infinite flexibility. For example, on the game platform CryptoRome. Here, a city has towns, and towns have villages, all of which are classified by different categories of tokens in the same game. This idea has been considered to have great potential in the real world.
- ERC721 In the top 5 Ethereum
innovation token standards, the ERC721 token standard is considered to be unique. Part of the reason is that they are an irreplaceable class of blockchain tokens.
This special token standard is popularized by the blockchain-based game "Encryption Cat". The ERC721 token standard is very flexible, allowing developers to enter specific characteristics into it. This is ideal for game developers who might want to include multiple different attributes in the protocol.
- The token of
this particular agreement of ERC221 is very similar to the token of ERC20. The difference between them is that when people put money into a smart contract, it can make up for accidental losses. In addition, the transaction cost on the ERC221 token standard is approximately half that of the ERC20. These additions have led many to believe that the protocol was upgraded from ERC20.
The disadvantage of the ERC221 token standard is that there are currently not many wallets that support tokens. Solving this problem may reveal that this innovative token standard has been adopted more widely.
- ERC20
This is currently the most popular of all Ethereum innovation token standards. This token standard has allowed many startups to launch their projects, and some of them will build their own blockchains later.
As mentioned above, it is very easy to create blockchain tokens using this token standard, and many insincere projects use this protocol. This has caused some criticism of the standard. In addition, ERC20 is considered to be a very useful solution that has contributed significantly to the development of the entire blockchain industry.
Conclusion
There is no doubt that the Ethereum Innovation Standard is one of the biggest contributors to the development of the blockchain industry and continues to receive the recognition it deserves.
As people's understanding of blockchain technology continues to increase, the application level of blockchain technology is also constantly improving. More importantly, we will see more Ethereum innovation token standards in our daily lives.