Crypto Academy Week 12 - Homework Post for @pelon53 | TOKENS, PART 2

The Ethereum blockchain have been on the news lately due to the release of the Ethereum 2.0. With the aid of this upgrade, the various token standards; ERC-20, ERC-721 and ERC-1155 will become faster and more efficient.

While ERC-20 is the oldest, as a fungible token it has its limitations. On the other hand, ERC-721 and ERC-1155 are non-fungible tokens that are able to create collectibles. The ERC-1155 token standard helps with the flaws of both ERC-20 and ERC-721, while combining their strengths.

For the purpose of this week’s homework, our focus will be on the ERC-1155 and ERC-721 token standards. We’d also talk about the TRC-20 that shares some similarities with the ERC-20.

What is ERC-1155 Token Standard?

The ERC-1155 token standard is one that combines the features of its predecessors; the ERC-20 and ERC-721 standards. This standard is used to create tokens on the ethereum blockchain as well as NFTs that are powered by the network.

The ERC-1155 is also commonly referred to as a semi-fungible token standard. This is because it combines two different standards, fungible and non-fungible standards. So, when you want a standard that can be used for both NFTs and tokens, this is the standard more likely to be used.

What is ERC-1155 token?

Similar to the other ethereum tokens, when tokens are created using this standard they are referred to as ERC-1155 tokens. They are also semi-fungible tokens, as a result of the standard that is used.

In comparison with ERC-720, the ERC-1155 tokens are much faster and have a better scalability. The multi-token approach that is utilised in the standard makes it one of the beat that currently exist. Some developers refer to it as a futuristic type of token.

It is important to note that this type of token was developed by Enjin and it still receives regular updates.

Characteristics of ERC-1155 tokens

Compatibility with ERC-20 and ERC-721

When used individually, the ERC-20 and ERC-721 tokens are not compatible together. Hence, when developers want a mix of both fungible and non-fungible features, there are unable to do so by using both standards. However, with the aid of ERC-1155, it makes it possible to combine the features of both. That way developers can create tokens that have a mix of both characteristics.

Security

When the developers, Enjin, started working on this new protocol on the ethereum network, they ensured that the assets are safe and placed measures to avoid double spending and rug pulls. Hence, the ERC-1155 is very safe for use.

Transactions

Transactions with the ERC-1155 tokens is far different from what you wil experience on other ethereum token. Standards. On this protocol, individuals can cancel transactions if they notice that it is being sent to a wrong address. In the past, I have lost ERC-20 tokens because I sent to a wrong address.

Fees

While fees on the ethereum blockchain are generally high, sending ERC-1155 tokens is far cheaper than sending any other token standard. This is because you can send the token in bulk, unlike the ERC-721 where you can only make one transaction at a time. With a single fee, you can send different ERC-1155 tokens at once. And you’re sure the receiver will get it early.

ERC-1155 vs ERC-721 Token standards

ERC-1155	ERC-721
This smart contract can send multiple transactions at a time. Whether it is tokens or NFTs, it is possible to send bull.	Does not support sending multiple NFTs. It can only send one at a time.
It supports ERC-20 to be stored in its smart contract address	ERC-20 cannot be stored in its contract address
Utilises Standard Dectection Interface	Does not support Standard Detection Interface
Failed transactions automatically reverts to sender address	Failed transactions do not easily revert to send address

How to determine the number of existing ERC-721 tokens

• First, go to your mobile or web browser and input into the url https://etherscan.io/

• Click on the Menu with the “Tokens” label

• Now, select “ERC721 Top Tokens”

You will find the information on the number of ERC721 token on this page. As at the time this post was written, there are currently 11,151 ERC-721 tokens in circulation. The amount make differ if you check at a later date, as developers are actively minting more tokens.

Top 5 ERC-721 Tokens

S/N	Name
1	Sorare
2	Uniswap
3	FND NFT
4	Ethereum Name Service (ENS)
5	Rarible

Note: These are NFT Projects. As for Rarible, I wrote about the project here

What is TRC-20 token standard?

Think of TRC-20 as Tron’s equivalent of the ERC-20. There’s also the BEP-20, and that’s the Binance Smart Chain’s version of the ethereum token standard. Today, many people prefer to use Tron and Binance variants of the token standard because of the high transaction fees and low scalability of the ERC-20 token type.

On the Tron blockchain, there are also several token standards like the 721 and 10 versions.

What is TRC-20 token?

When the TRC-20 standard is used in creating a token, it is referred to as the standard’s version. There are currently many TRC-20 tokens that are in existence. There’s even TRX on that smart contract.

Features of TRC-20 tokens in comparison to ERC-20

Speed

Transactions are faster when you send TRC-20 tokens, unlike the ERC-20 tokens that require much more confirmations before tokens are received.

Fee

The transaction fee when you send TRC-20 tokens is also less compared to the ERC-20 equivalent. Another interesting feature is that the USDT tokens on TRC-20 are sent for free.

Development

Many developers prefer to build their projects with the TRC-20 token standards because of its scalability and amazing features.

Decimals

While ERC-20 support a limited number of decimals, the TRC-20 supports much more decimals. It supports 18 decimals and that makes it possible to transfer smaller quantities of the token on this standard.

Example of TRC-20 Token

TRX is a good example of the TRC-20 token standard. This token is available on many standards and very much compatible with many crypto wallets.

USDT-TRON is an example of TRC-20 token. It was issued by Tether on Tron Blockchain. USDT-TRON is compactable with a majority of existing wallets.

How to determine the number of existing TRC-20 tokens

• Visit https://tronscan.org/#/ with your mobile or web browser

• Click on the menu labelled “Tokens”

• Then, click on the Token Tracker, then TRC20

It can be observed from the screenshot above that there are currently 16,099 TRC-20 tokens in distribution. Please note that the value tend to increase with more development on the Tron blockchain.

Top 5 TRC-20 Tokens

S/N	Name
1	Wrapped TRX (WTRX)
2	Wrapped BTT (WBTT)
3	Bitcoin (BTC)
4	Wrapped BTC (WBTC)
5	Ethereum (ETC)

Conclusion

In today’s digest, we’ve been able to look at the unique combination of ERC-20 and ERC-721 by the ERC-1155 token standard. Also, we’ve learned why there was a need for the Blockchain Project, Enjin, to develop this new token standard. We’ve also seen some of its amazing features and how secure and scalable it is.

In the article, we compared ERC-1155 to the other token standards and see some similarities that they have. We’ve also examined the number of ERC-721 tokens that are currently in circulation. As at the time, we looked of the circulation, there was over a thousand of those tokens.

Lastly, we had a broad look at the TRC-20 token standards and the similarities it has with the ERC-20 Token standard. We’ve also looked at where it excelled over the ethereum’s version.

Thanks to professor @pelon53 for making all these possible.