Token Standard Basics

Since everybody can follow their own design rationale, it can be difficult to interact with different tokens. That is why token standards were introduced. By unifying the structure of tokens, they make it easier to program new smart contracts that interact with them. Because all tokens of the same standard can be used with the same functions, both wallets and exchanges can display different tokens. Developers can more easily adapt to new tokens if they conform to a known standard.

A standard is created by first submitting a preliminary proposal (Ethereum Improvement Proposal = EIP). This is done via the GitHub platform (https://github.com/ethereum/EIPs ). If a committee approves it, it becomes an ERC (Ethereum Request for Comment). Ethereum token standards are named after their ERC number – the best known is ERC20 (https://eips.ethereum.org/EIPS/eip-20 ).