What is an Ethereum Request for Comment (ERC) and its Types?

Cryptocurrencies and blockchain technology have revolutionized the way we perceive finance and digital transactions. Ethereum, a popular blockchain platform, came up with the idea of “Ethereum Request for Comment” (ERC) standards, which are essential parts of the Ethereum ecosystem. 

These standards are an important part of how new tokens and smart contracts are made and used on the Ethereum blockchain. 

This article delves into the intricacies of ERCs, their types, and their significance in the blockchain and cryptocurrency space.

What is an Ethereum Request for Comment (ERC)?

An Ethereum Request for Comment (ERC) is a formal proposal presented by developers to suggest improvements, enhancements, or new features for the Ethereum blockchain. ERCs serve as a means of communication within the Ethereum community and allow developers to collaborate on the development of new tokens, protocols, and smart contracts. These proposals play a crucial role in shaping the evolution of the Ethereum platform.

Think of ERCs as blueprints or guidelines that outline how new functionalities should be implemented on the Ethereum blockchain. They define the technical standards that developers need to follow when creating new tokens or smart contracts. This standardization ensures that different tokens and applications are compatible with each other and can interact seamlessly within the Ethereum ecosystem.

What are some Token Categories in ERC Standards?

ERC (Ethereum Request for Comment) standards have paved the way for various token categories, each serving distinct purposes within the Ethereum blockchain ecosystem. These token categories, defined by different ERC standards, offer diverse functionalities and cater to a wide range of use cases. 

Let’s explore the primary token categories established by ERC standards:

Fungible Tokens: 

Fungible tokens are tokens that are interchangeable on a one-to-one basis. They hold uniform value and are mutually substitutable, making them suitable for use as currency or assets with identical attributes. The most common example of fungible tokens is ERC-20 tokens, which are widely used for Initial Coin Offerings (ICOs), trading, and creating utility tokens for decentralized applications.

Non-Fungible Tokens (NFTs): 

Non-fungible tokens are unique and indivisible tokens, with each possessing distinct characteristics and values. They are employed to represent ownership of specific assets, such as digital collectibles, art, virtual real estate, and unique in-game items. ERC-721 tokens are a prime example of NFTs, enabling ownership representation and provenance tracking for one-of-a-kind items.

Semi-Fungible Tokens: 

Semi-fungible tokens combine features of both fungible and non-fungible tokens. They allow for differentiation and uniqueness among tokens within a common category. The ERC-1155 standard enables the creation of semi-fungible tokens, offering greater efficiency by allowing multiple token types to be managed within a single contract.

What are the Types of ERC Standards?

ERC standards are a set of technical specifications that define how tokens can be created and used on the Ethereum blockchain. These standards are developed by the Ethereum community and are designed to ensure that tokens are interoperable and secure. Each ERC standard focuses on a particular aspect of the blockchain, such as token creation, ownership, or governance. 

Let’s explore some of the prominent types of ERC standards:


ERC-20 is undoubtedly one of the most impactful standards, enabling the creation of fungible tokens that power a multitude of applications and Initial Coin Offerings (ICOs). However, it’s not without its limitations. One of the key drawbacks of ERC-20 tokens is that they lack built-in support for more complex use cases. These tokens are essentially the same, making them unsuitable for representing unique assets or non-fungible items.


ERC 721 Non-fungible Tokens address the limitations of fungibility by allowing the creation of unique and indivisible assets, which has fueled the rise of digital collectibles and ownership representation. Nonetheless, ERC-721 tokens are less efficient in terms of gas costs due to their uniqueness. Transferring these tokens requires more computational resources compared to ERC-20 tokens.


ERC-1155 seeks to offer a compromise between ERC-20 and ERC-721 by enabling the creation of multiple token types within a single contract. While this enhances efficiency and reduces gas costs, it might still be limited in representing truly unique assets. Moreover, ERC-1155 tokens within the same contract are still subject to the constraints of uniformity.


ERC-777 is a specialized token standard within the Ethereum blockchain ecosystem that builds upon the foundation laid by the well-known ERC-20 and ERC-223 standards. This standard introduces several enhancements and features that address some of the limitations present in its predecessors.


ERC-3338 addresses voting and governance, crucial for decentralized decision-making. However, it’s essential to note that even well-structured voting mechanisms can’t eliminate the potential for disagreements and conflicts within decentralized autonomous organizations (DAOs). Governance decisions might still face challenges in achieving consensus.

Other ERC Standards:

Various other ERC standards, like ERC-20XX and ERC-948, have their own merits and limitations. ERC-20XX standards add improvements to existing ERC-20 functionalities, yet they might introduce complexities that require careful consideration during implementation. ERC-948, while addressing lost private keys, relies on a process that must be carefully executed to prevent misuse or fraud.

What are some benefits of ERC standards?

The Ethereum Request for Comment (ERC) standards have revolutionized the world of blockchain development by providing a structured framework for creating tokens, smart contracts, and applications. 

These standards offer a myriad of benefits that contribute to the growth, interoperability, and innovation within the blockchain ecosystem. 

Let’s delve into the advantages of using ERC standards:


ERC standards establish common rules and interfaces, ensuring that tokens and applications adhering to these standards can seamlessly interact with one another. This interoperability promotes a cohesive ecosystem where various projects and platforms can work together without compatibility issues.

Ease of Development:

By providing well-defined templates and guidelines, ERC standards simplify the process of creating tokens and smart contracts. Developers don’t need to reinvent the wheel for every project; they can rely on established standards, saving time and effort.

Adoption and Integration:

The standardized nature of ERC tokens facilitates their adoption by cryptocurrency exchanges, wallets, and other blockchain services. These platforms are more likely to integrate tokens that conform to recognized standards, making it easier for users to trade and manage their assets.

Community Collaboration:

ERC standards foster collaboration within the blockchain community. Developers, researchers, and enthusiasts can engage in discussions, debates, and improvements to existing standards. This collaborative approach ensures that the standards evolve to meet the changing needs of the ecosystem.

Reduced Complexity:

With ERC standards, users don’t need to understand the intricate technical details of each token or contract. The standardized interfaces make it simpler for users to interact with tokens and DApps, even if they lack deep technical knowledge.

Security and Auditing:

Since ERC standards have been widely used and reviewed, they undergo thorough security audits and testing. This reduces the likelihood of vulnerabilities and security breaches, enhancing the overall trustworthiness of the ecosystem.


While ERC standards provide a foundation, they also encourage innovation by allowing developers to build upon existing templates. This leads to the creation of more sophisticated token functionalities, pushing the boundaries of what’s possible within the blockchain space.

Regulatory Compliance:

Some ERC standards, like ERC-20, have become a benchmark for regulatory compliance in issuing tokens. This compliance helps projects navigate legal landscapes and build trust with users and investors.

User-Friendly Experience:

ERC standards contribute to a more user-friendly experience. Users can expect consistent behaviors and interactions when dealing with different tokens and DApps, making the blockchain ecosystem more accessible to a broader audience.

Ecosystem Growth:

The widespread adoption of ERC standards has contributed to the growth of the Ethereum ecosystem as a whole. More projects, applications, and tokens are built on Ethereum due to the availability of established standards, driving innovation and diversity.

How does Ethereum Request for Comment (ERC) work?

The Ethereum Request for Comment (ERC) standards might seem complex at first glance, but they are designed to streamline the creation and implementation of various functionalities within the Ethereum ecosystem. 

Let’s dive into how ERCs work:

Proposal and Idea Generation:

The process begins with a developer conceiving a new feature, token, or smart contract that they believe would enhance the Ethereum network. This idea is formalized into a proposal known as an Ethereum Improvement Proposal (EIP). The EIP outlines the concept, its technical specifications, and the problem it aims to solve.

Community Discussion and Feedback:

Once the EIP is submitted, it enters a phase of open community discussion. Ethereum’s vast and engaged developer community reviews the proposal, providing feedback, suggestions, and even potential pitfalls. This collaborative phase ensures that multiple perspectives are considered and that the proposed standard aligns with Ethereum’s overarching goals.

Refinement and Iteration:

Based on the feedback received, the original proposal undergoes refinement. Developers iterate on the EIP, making necessary adjustments to address concerns and optimize the standard. This iterative process is crucial in ensuring that the final ERC standard is robust, secure, and compatible with the existing Ethereum ecosystem.

Technical Implementation:

With a refined EIP in hand, developers begin the technical implementation of the ERC standard. This involves writing the code that defines the rules, functions, and behaviors of the proposed standard. The technical implementation must align precisely with the specifications outlined in the EIP.

Testing and Audit:

Before a new ERC standard is fully adopted, rigorous testing and auditing take place. The code is subjected to various test scenarios and security assessments to identify and rectify any vulnerabilities or bugs. Security audits are especially critical, as they ensure that the new standard can withstand potential attacks or exploits.

Deployment and Adoption:

Once the ERC standard passes testing and audits, it is ready for deployment on the Ethereum network. Developers can then start building applications, tokens, or contracts based on the new standard. As adoption grows, the Ethereum ecosystem becomes richer and more diverse, thanks to the functionalities enabled by the ERC.


In the dynamic realm of blockchain and cryptocurrencies, Ethereum Request for Comment (ERC) standards stand as a testament to collaborative innovation. These standards facilitate the creation of tokens, protocols, and smart contracts that form the foundation of the Ethereum network. 

ERC empowers developers to contribute to the ecosystem’s growth while maintaining compatibility and efficiency. As blockchain technology advances, ERCs will undoubtedly remain a cornerstone of progress, continually driving the expansion of possibilities within the Ethereum network.

FAQs on Ethereum Request for Comment (ERC)

Q: Can anyone propose an ERC? 

A: Yes, anyone with a solid understanding of blockchain technology and Ethereum’s principles can propose an ERC. However, the proposal should be well-documented and address a genuine need within the ecosystem.

Q: How are ERC proposals approved? 

A: ERC proposals undergo a community review process. Developers, stakeholders, and enthusiasts discuss the proposal’s merits, potential challenges, and impact. Consensus is reached through community agreement.

Q: Can ERC standards evolve? 

A: Absolutely. As technology and requirements change, ERC standards can evolve to accommodate new features, security enhancements, and improved functionalities.

Q: Are all ERC immediately implemented? 

A: No, not all proposals are implemented. The Ethereum community evaluates proposals based on technical feasibility, security considerations, and alignment with the platform’s goals.