In the ever-evolving world of blockchain and cryptocurrencies, keeping up with the myriad of terms and technologies can be daunting. This article aims to demystify some of the common terminologies you might encounter, presented in a straightforward FAQ style.
What is ERC20?
ERC20 stands for Ethereum Request for Comment 20. It’s a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. ERC20 tokens are blockchain-based assets that have value and can be sent and received. The majority of tokens issued on the Ethereum blockchain are ERC20 compliant.
What is BEP20?
BEP20 is a token standard on Binance Smart Chain (BSC), similar to Ethereum’s ERC20. It provides a flexible format for developers to launch a wide range of tokens on Binance Smart Chain. BEP20 tokens are compatible with both Binance Chain’s BEP2 and Ethereum’s ERC20, though they operate on BSC.
What is TRC20?
TRC20 is a token standard based on the implementation of smart contract when using TRON’s blockchain. TRC20 tokens are Tron-based analogs to ERC20, offering high throughput, scalability, and availability, suiting them for various applications in the decentralized finance (DeFi) sector.
What is a Meme Coin?
A Meme Coin is a type of cryptocurrency that is inspired by memes or humorous concepts. These coins often gain popularity rapidly due to viral social media sharing. The most famous examples are Dogecoin and Shiba Inu. Despite their origins in humor, some meme coins have achieved substantial market capitalization.
What is Solana SPL?
Solana SPL is a token standard on the Solana blockchain. SPL stands for Solana Program Library. It’s analogous to ERC20 tokens but for the Solana network. Solana’s architecture and SPL tokens are known for their high-speed and low-cost transactions, making them a popular choice in applications requiring fast settlement.
What is ERC223 Token?
ERC223 is a token standard that seeks to improve on ERC20. It addresses a specific issue where ERC20 tokens could be lost when transferred to a contract that is not designed to handle such tokens. ERC223 tokens are backwards compatible with ERC20 tokens but allow users to safely transfer tokens to both wallets and contracts with the same function.
What are ERC721 Tokens?
ERC721 tokens are a different breed compared to ERC20. Known as Non-Fungible Tokens (NFTs), each ERC721 token is unique and can’t be interchanged on a one-to-one basis. This standard is most commonly used for digital art, collectibles, and other digital assets where uniqueness and provenance are important.
What is the Significance of ERC1155?
ERC1155 is a multi-token standard that enables the management of multiple token types in a single contract. It’s a more advanced token standard allowing the creation of both fungible (like ERC20) and non-fungible (like ERC721) tokens. This standard provides significant efficiency improvements in the gaming and NFT domains, where a variety of token types can be managed seamlessly.
