Introduction
Ethereum has been able to stand out from many blockchain networks and cryptocurrencies and become the second largest cryptocurrency in terms of market capitalization after Bitcoin, thanks to the joint promotion of the Ethereum community, in which document specifications such as ERC and EIP have played an important role.
What is EIP?
The full name of EIP is Ethereum Imporvement Proposals, which is a series of numbered ranked documents, similar to the RFCs of the IETF on the Internet. Ethereum Improvement Proposals is also a technical document containing suggestions for various enhanceable projects released by the ethereum development community, which can be any These suggestions can be for improvements in any area of the Ethernet ecosystem, including but not limited to new features, ERCs, protocol improvements, programming tools, and more.
You can check all current EIPs at the following address:
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https://eips.ethereum.org/all
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https://github.com/ethereum/EIP
Famous EIPs
EIP-1559
Ethereum Improvement Proposal 1559 (EIP-1559), which aims to reduce fees and deflate ethereum, was also a key proposal at the "London Hard Fork". All users must pay a "base fee" calculated by the system for normal transaction speeds, and a "tip" that users optionally pay for speeding up transactions. All ETH used to pay the base fee must be destroyed. By destroying them, the total supply of ETH will be reduced, making ethereum rare and therefore more valuable. According to statistics, more than 3.2 million ETH have been burned as of May 2023.
EIP-4844
Ethereum Improvement Proposal 4844 aims to address the scalability issues of ethereum. Although the scalability of Ether is currently mitigated by roll-ups of Layer-2 networks (e.g. Arbitrum, Optimism), as an interim solution, rollups are expensive and slow, falling far short of the processing speed of thousands of transactions per second as in the case of visas. "This adds space for millions of transactions on Ether, a whole new layer of data available Danksharding is similar to adding lanes to the current Ethereum network's congested highway. As a result, EIP-4844 enters what was once called the "surge" phase of the Ethernet roadmap.
EIP4895
In September 2022, Ethereum successfully completed the conversion from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism. Users wishing to participate in network validation can now do so by staking only 32 ETH, eliminating the need for specialized mining equipment to solve computational challenges. However, a number of participants have already pledged their ETH to the network before the merge, and the staked ETH is locked up for about two years until the Shanghai upgrade in March 2023. The launch of EIP-4895 means that users can finally get their ETH back and have the right to decide for themselves what to do with those funds that have just arrived.
What is ERC?
The ERC, known as the Ethereum Request for Comment, is a proposal from the Ethereum community on how to improve the ethereum network, and is used to document various application-level standards.
The EIP serves as a document structure for standardized development improvements within Ethereum, and contains the contents of the ERC. EIP specifies any modifications that affect most or all Ethereum implementations, which can be broken down into core, network, interface, etc. EIP improves the protocol itself, while ERC is the rule that enables applications and contracts to interact on development standards and protocol standards. EIP and ERC record documents on Ethereum as the central unit of governance (decision making).
ERC Token Protocol and Important Examples
ERC-20
ERC-20 is a protocol standard for smart contracts on the Ethernet blockchain proposed by Fabian Vogelsteller in 2015 and is the most representative.ERC-20 protocol ERC-20 establishes a standard interface for representing tokens. It clearly defines how tokens issued based on its standard will work in the Ethernet network.
The ERC-20 standard became a very well-developed version after the September 2017 iteration, and tokens based on this standard can be accepted by supporting Ethereum wallets, exchanges, and using the Ethereum Explorer to see transfer records on its network, among other things.
ERC-721
Proposed in January 2018, the ERC-721 standard introduces the concept of "irreplaceability", allowing the creation of smart contracts where each token is unique. This concept can easily be applied to rare, unique or other types of collectibles. This is the standard used in the CryptoKitties, for example, where each cat has uniqueness. In general, all houses are different and no two kittens are the same. ERC-721 is used to generate non-fungible tokens (NFTs), which are distinguishable and the ownership of each one can be tracked separately. Tokens based on this type of standard can still be used to exchange on exchanges, but they can not be split.
ERC-1155
The ERC-1155 token can be understood as an evolution of the ERC-20 and ERC-721 tokens, allowing users to manage both fungible and non-fungible tokens in a single smart contract, as well as supporting multiple transactions for different types of tokens. This feature is intended for use in more complex video games than CryptoKitties, for example allowing the purchase, sale and exchange of game currency and virtual items.
Disclaimer
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Crypto investment involves significant risks. Please proceed with caution. The course shall not be considered investment or financial advice.