ERC Token Standards: Complete Guide for 2025
Key Takeaways
- ERC standards create rules for Ethereum tokens to interact with each other, with ERC-20, ERC-721, and ERC-1155 serving most developer and user needs.
- ERC-20, ERC-721, and ERC-1155 are the most widely used standards. They support fungible, non-fungible, and multi-token capabilities within Ethereum’s ecosystem.
- Newer standards add specialized features – ERC-777 enhances security, ERC-998 enables token ownership hierarchies, and ERC-4626 standardizes yield-bearing vaults across DeFi platforms.
- Each standard solves specific blockchain challenges, from ERC-865’s gas fee delegation to ERC-1132’s token-locking capabilities, giving developers options for unique project requirements.
If you’ve ever bought crypto, traded an NFT, or played a blockchain-based game, you’ve already crossed paths with ERC token standards – even if you didn’t know it. These token standards are like the rules for Ethereum, ensuring everything from cryptocurrencies to NFTs works smoothly. Without them, wallets, exchanges, and decentralized apps (dApps) would be chaotic.
But let’s be honest – figuring out what ERC standards are and why they matter can feel like learning a new language. There’s ERC-20 for fungible tokens, ERC-721 for NFTs, ERC-1155 for multi-tokens, and many others with complicated names. How do you know which ones matter and what they actually do?
Don’t stress. This guide breaks it all down for you. You’ll get to know the major ERC standards, see how they compare, and explore some lesser-known ones that make Ethereum a powerhouse for developers and creators. Ready to dive in? Let’s go.
ERC Token Standards List
ERC token standards outline the rules that Ethereum-based tokens follow. These rules ensure consistency, making Ethereum one of the most versatile platforms for building decentralized projects.
Below is a quick look at the most notable ERC standards:
| Token Standard | Key Function |
|---|---|
| ERC-20 | Fungible tokens (cryptocurrencies, utility tokens) |
| ERC-721 | Non-fungible tokens (NFTs) |
| ERC-1155 | Multi-token standard (fungible + non-fungible) |
| ERC-777 | Operator-based token management |
| ERC-998 | Composable NFTs |
| ERC-4626 | Yield-bearing vaults |
| ERC-223 | Secure token transfers |
| ERC-827 | Enhanced transaction data |
| ERC-864 | Shared NFT ownership |
| ERC-865 | Pre-signed token transfers |
| ERC-1132 | Token locking |
| ERC-1203 | Multi-class tokens |
While this list might seem overwhelming, most users regularly interact with only three of these standards: ERC-20, ERC-721, and ERC-1155. Let’s break these down.
ERC-20: Fungible Token Standard
Ethereum’s token economy is built on the ERC-20 standard. Developers use it to create fungible tokens -assets where every unit holds the same value. Think of these tokens like a stack of dollar bills. Each dollar looks and works the same way; no one cares which specific dollar they get during a trade. Cryptocurrencies, governance systems, and reward programs all benefit from the consistency of ERC-20 tokens.
ERC-20’s compatibility is what makes it so appealing. Every ERC-20 token follows a specific rule set, allowing wallets, exchanges, and dApps to support them without additional customization. Both Tether’s USDT for stablecoin and Uniswap’s UNI for decentralized trading benefit from the standardization offered by ERC-20.
The standard doesn’t just stop at simplicity – it supports various functionalities. Developers can program tokens for transfers, balances, approvals, and more. This flexibility makes ERC-20 the top choice for launching new digital currencies. Many ICOs (Initial Coin Offerings) rely on ERC-20 to ensure investors can easily store and trade tokens.
ERC-20’s widespread adoption doesn’t mean it’s flawless. Issues like high gas fees and the potential for accidental token loss when sent to incompatible smart contracts highlight areas for improvement. However, these challenges haven’t stopped ERC-20 from becoming a trusted backbone for Ethereum-based assets.
ERC-721: Non-Fungible Token (NFT) Standard
ERC-721 brought a fresh idea to Ethereum: unique digital assets. Unlike ERC-20 tokens, which are identical, ERC-721 tokens stand apart. Each carries a distinct identity, making them ideal for representing ownership of digital art, collectibles, or real-world assets like property.
NFTs owe their existence to ERC-721. Platforms like OpenSea have flourished because ERC-721 created marketplaces where creators and collectors can trade unique items.
ERC-721 doesn’t just apply to art and collectibles. Its potential stretches to certificates, licenses, and any scenario requiring provable ownership of a unique item. Developers favor ERC-721 for its clear implementation and compatibility with Ethereum’s ecosystem.
However, the standard comes with its challenges. Managing unique assets requires more resources than fungible tokens, and high transaction fees can deter casual users. Despite these obstacles, ERC-721 continues to pave the way for ownership and digital identity innovation.
ERC-1155: Multi-Token Standard
ERC-1155 provides a smart way for developers to handle different token types. Using this standard, you can create contracts for fungible and non-fungible tokens using a single unified framework.
Gaming platforms illustrate their potential perfectly. With ERC-1155, developers can create both types of tokens within one contract, cutting costs and reducing complexity.
Using multiple tokens also reduces the number of transactions. A single transfer can include numerous token types, saving users time and gas fees. This efficiency appeals to developers who want scalable and practical project solutions.
ERC-1155’s innovative and adaptable nature has become recognized as a significant standard within the Ethereum ecosystem. Although it doesn’t entirely replace ERC-20 or ERC-721, it bridges the gap, offering developers more options when building decentralized applications.
Key ERC Token Standards Compared
To understand these standards better, let’s compare them side by side.
ERC-20 vs. ERC-721: Fungible vs. Non-Fungible Tokens
ERC-20 and ERC-721 serve completely different purposes. While ERC-20 supports identical tokens, ERC-721 is all about uniqueness.
| Feature | ERC-20 | ERC-721 |
|---|---|---|
| Token Type | Fungible | Non-fungible |
| Use Cases | Cryptocurrencies, utilities | Digital art, collectibles |
| Compatibility | Widely adopted | Rapidly growing adoption |
ERC-721 vs. ERC-1155: Non-Fungible vs. Multi-Tokens
ERC-1155 expands on the functionality of ERC-721 by combining fungible and non-fungible tokens under one framework.
| Feature | ERC-721 | ERC-1155 |
|---|---|---|
| Token Variety | Non-fungible | Fungible + non-fungible |
| Cost Efficiency | Higher transaction cost | Reduced transaction cost |
| Use Cases | NFTs | Gaming, multi-asset systems |
ERC-20 vs. ERC-1155: Fungible vs. Multi-Tokens
ERC-1155 offers added flexibility by supporting multiple token types, whereas ERC-20 focuses solely on fungible tokens.
| Feature | ERC-20 | ERC-1155 |
|---|---|---|
| Token Variety | Fungible only | Fungible + non-fungible |
| Contract Usage | One token per contract | Multiple tokens per contract |
| Use Cases | Cryptocurrencies | Gaming, complex ecosystems |
Lesser-Known ERC Standards Explained
Beyond the major standards, several ERC tokens cater to niche needs. These standards push innovation by addressing specific challenges and opportunities.
Let’s break them down:
ERC-777: Operator-Based Token Standard
ERC-777 introduces operators who can manage tokens for users. Operators function as trusted entities, taking actions like transferring tokens or executing transactions without requiring user intervention every time.
For example, decentralized apps (dApps) can schedule recurring transactions or implement advanced features like gasless payments.
ERC-998: Composable Non-Fungible Tokens
ERC-998 allows NFTs to own other tokens, turning them into bundles of related assets and making them more versatile. Developers can create richer gaming experiences or build layered digital products where one NFT represents a collection of valuable items.
ERC-4626: Yield-Bearing Vaults Standard
ERC-4626 defines how yield-bearing vaults operate in DeFi. Vaults are key to staking and farming, allowing users to deposit tokens and earn returns. ERC-4626 brings consistency by standardizing these processes across platforms.
Users can now interact with vaults predictably, improving the staking reward experience. Developers benefit from a simplified framework, reducing the complexity of designing yield-focused DeFi protocols.
ERC-223: Secure Token Transfers
ERC-223 solves a common problem with ERC-20: losing tokens during transfers to incompatible smart contracts. It enhances security by ensuring all transfers are compatible with receiving contracts. Developers can minimize risk with this feature, while users feel more secure about their transactions. Projects prioritizing safe transfers often turn to ERC-223 to protect their communities from costly mistakes.
ERC-827: Enhanced Transaction Data
ERC-827 builds on the ERC-20 framework by letting tokens carry additional data during transactions, a feature helpful in scenarios requiring metadata. For instance, supply chain applications can attach tracking information to token movements. Similarly, voting systems can include context for each vote cast. By enabling richer data exchange, ERC-827 supports a broader range of use cases without requiring separate solutions.
ERC-864: Shared NFT Ownership
ERC-864 introduces shared ownership for NFTs, allowing multiple users to hold stakes in a single token. By dividing ownership, high-value items, such as digital art, real estate, or collectibles, become more accessible. For example, friends could co-own an NFT representing a rare artwork. This flexibility expands the possibilities for fractional ownership, bringing NFTs closer to real-world use cases like shared investments.
ERC-865: Pre-Signed Token Transfer
ERC-865 simplifies transactions by letting users pre-sign transfers. It also allows users to cover transaction fees using tokens instead of ETH. Microtransactions, often impractical due to high gas costs, become feasible with ERC-865. Thanks to this feature, which overcomes the limitations of traditional token transfer methods, developers can easily implement in-app purchases and low-value services.
ERC-1132: Token Locking Capability
ERC-1132 supports locking tokens until certain conditions are met. This feature suits scenarios like vesting periods, escrow agreements, or project milestones. Projects can build trust with their communities by locking tokens and ensuring accountability. For example, a new company can hold onto the tokens given to its team until they reach certain milestones.
ERC-1203: Multi-Class Token Standard
ERC-1203 introduces multi-class tokens, enabling the management of different token types within one framework. Businesses, for example, can issue loyalty points divided into tiers, such as basic, silver, and gold. The token flexibility simplifies how projects structure rewards, gamification systems, or tiered memberships. By reducing the need for multiple contracts, ERC-1203 keeps things organized and developer-friendly.
Closing Thoughts
While ERC standards shape the foundation of token development, their true potential extends beyond technical specifications. Consider how ERC-1155’s efficiency might improve gaming economies or how ERC-4626 could standardize yield generation across DeFi. The next wave of standards might emerge from unexpected use cases – perhaps social tokens that combine ERC-721’s uniqueness with ERC-20’s transferability or new standards that address cross-chain compatibility.
For developers and users, mastering these standards means more than understanding their code – each standard represents a building block for reimagining Web3 digital ownership, value transfer, and social coordination. The question becomes not which standard to use but how to combine them creatively to solve real-world challenges.
