digital wallets</strong></a> securely.</p>\n<p>ERC-223 is one of many Ethereum-based token standards. Each standard offers <strong>different functionality and utility</strong>. Some of the most popular Ethereum tokens are ERC-20, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-erc-721/">ERC-721, and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-erc-1155/">ERC-1155./nERC-20 is the most common type </strong>of Ethereum token. It is considered to be <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-fungible/">fungible and has a lot of versatility. However, some of its design flaws can lead to tokens being lost if the users send them to a smart contract instead of an ordinary crypto wallet. According to some statistics, <strong>over $3 million ERC-20 tokens have been lost by accident</strong>.</p>\n<p>ERC-223 was developed to fix this issue. Users can opt to transfer tokens to smart contracts and wallets that function the same way. They are more efficient and <strong>faster</strong> than ERC-20 tokens.</p>\n<p>ERC-223 acts as an extension of the ERC-20 token as it maintains the original functionality and improves on some of the issues. This standard particularly improves transactions involving smart contracts.</p>\n<p>One of the transfer parameters confirms that <strong>the destination of the tokens is a smart contract</strong>. It operates using a Fallback function, allowing the tokens to be returned to the sender’s account and then transferred to the smart contract. This prevents the loss of tokens as it includes smart contracts in the transaction procedure.</p>\n<p>Some of the benefits of using ERC-223 over ERC-20 are:</p>\n<ul>\n<li>The use of <strong>automated smart contracts</strong> allows transactions to be completed smoothly and seamlessly;</li>\n<li>The transaction details remain transparent;</li>\n<li>The token is decentralized, so all transactions are completed without an <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-intermediary-middleman/">intermediary;/nThe <strong>wait times </strong>and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-gas-price/">gas fees</strong></a> of the transaction are reduced;</li>\n<li>Investors are able to receive instant <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-liquidity/">liquidity and high <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-roi/">return of investment (ROI)</strong></a> as means of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-passive-income/">passive income</strong></strong></a>;</li>\n<li>Tokens can be transferred into a smart contract with just one transaction, thus avoiding blockchain bloating;</li>\n<li>ERC-223 comes with multi-level security features which prevent hacking or malicious attacks. The security features include HTTP authentication, <strong>end-to-end encryption</strong>, and escrow protection;</li>\n<li>Token transactions proceed similarly to Ether transactions, so there is no confusion within the Ethereum ecosystem.</li>\n</ul>","level":"medium","meta_title":"What is ERC-223? Definition & Meaning | Crypto Wiki","meta_description":"ERC-223 meaning: ERC-223 - an Ethereum-based token powered by smart contracts. It allows secure transfer of tokens into a digital wallet.","meta_keywords":null,"language":"en","created_at":"2022-03-14T06:51:55.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-erc-223"},"prevSection":{"id":320,"original_id":null,"author_id":41,"translator_id":null,"title":"What is ERC-1155?","slug":"what-is-erc-1155","section":"E","keyword":"ERC-1155","status":"published","definition":"an Ethereum-based token standard that offers higher security and tradeability compared to the older ERC standards.","content":"<p>ERC-1155 are tokens based on the Ethereum blockchain. They are considered to be secure, hack-proof, and tradeable. ERC-1155 can be utilized to create new <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-fungible/">fungible tokens</strong></a> that can serve as currencies on different platforms.</p>\n<p>ERC-1155 tokens are optimized to improve the efficiency and security of crypto transactions. The cost of token transfer is reduced thanks to the option to bundle the transactions.</p>\n<p><strong>ERC-1155 token is an upgraded version of the older Ethereum token standards</strong>, such as the fungible <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-erc-20/">ERC-20 or the non-fungible <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-erc-721/">ERC-721. Both of the older standards are widely used in the Ethereum ecosystem. However, they come with certain limitations and issues that have been patched with the release of newer token standards.</p>\n<p>The ERC-20 and ERC-721 tokens provide completely different functionalities and cannot be used interchangeably. Attempts to do so may lead to network disruptions or failure. The ERC-1155 token was developed as<strong> a single contract that implements features of both – ERC-20 and ERC-721 token standards</strong>.</p>\n<p>ERC-1155 provides more efficient token management and expands past some of the limitations of the older standards. ERC-1155 tokens can execute a deterministic <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-smart-contract/">smart contract</strong></a> function by sending a token to a specific address.</p>\n<p>If a token is sent to a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-decentralized-exchange-dex/">decentralized exchange (DEX)</strong></a> address, another token can immediately return to the sender’s address. Using ERC-1155, tokens can be easily wrapped, converted, or <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-escrow/">escrowed without any direct contact with the smart contract. The users can simply send the token to a specific address to initiate the process.</p>\n<p><strong>ERC-1155 stands out for its secure token transfer capabilities</strong>. These tokens contain a function used to verify the completion of the transaction. If the transaction is not fulfilled, the tokens are returned back to the sender’s wallet.</p>\n<p>If a user makes a mistake when setting up a transaction or mixes up the wallet addresses, leading to the tokens being sent to the wrong recipient, the ERC-1155 standard declares the transfer void and the tokens can be recovered. This functionality is not possible with the older ERC standards. The mechanics of ERC-1155 also help prevent <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-double-spend-attack/">double-spending attacks</strong></a>.</p>\n<p>In general, ERC-1155 offers <strong>wider functionality and more flexibility</strong> than the ERC-20 and ERC-721 standards. It is expected that the ERC-1155 tokens will become increasingly popular in the Ethereum ecosystem, possibly dethroning the older, non-interchangeable tokens.</p>","level":"medium","meta_title":"What is ERC-1155? Definition & Meaning | Crypto Wiki","meta_description":"ERC-1155 meaning: ERC-1155 - an Ethereum-based token standard that offers higher security and tradeability compared to the older ERC standards.","meta_keywords":null,"language":"en","created_at":"2022-03-14T06:38:37.000000Z","updated_at":"2022-10-03T14:22:16.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-erc-1155"},"currentChapter":"E","currentSection":"what-is-erc-20","chapterTitle":"E","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-erc-20","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0"> Crypto Terms: Letter E
What is ERC-20?
ERC-20 MEANING:
ERC-20 -
a token standard developed and used in the Ethereum ecosystem.
Let's find out ERC-20 meaning, definition in crypto,
what is ERC-20,
and all other detailed facts.
ERC-20 is a token standard based on the Ethereum blockchain. These tokens can be used in a similar manner as cryptocurrency coins – for online transactions or trades between fiat currencies and crypto. ERC stands for Ethereum Request for Comment.
ERC-20 tokens typically have a fixed supply and can be stored in crypto wallets that accept Ethereum. They rose to prominence around 2017 and 2018, during the large wave of initial coin offering (ICO) projects. They are often used in the development of decentralized apps (dApps).
ERC-20 tokens are fungible, therefore, they are interchangeable. Thus, ERC-20 tokens differ from ERC-721 tokens, which are non-fungible tokens (NFTs) that possess unique characteristics.
Besides, note that there are certain conditions that all ERC-20 standard tokens must adhere to. The lack of compliance can make these tokens unusable.
Overall, ERC-20 tokens offer a lot of versatility and liquidity. They can be purchased or traded on a huge variety of crypto exchange platforms.
