Crypto Academy Week 12 - Homework Post for Professor @pelon53 on Tokens, Part Two.

Hello Steemians, I'm happy to be part of this wonderful class delivered by professor @pelon53 on Tokens part 2. This is a continuation of our previous lesson where we learnt about the different types of token. But in this lesson, we will be exploring token built on the Ethereum blockchain. The lesson was an informative one and I'm here to perform my homework task.

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Explain the ERC-1155 Token in Detail.

It is no doubt that the cryptocurrency industry is still developing and the developers are constantly generating ideas to build a more flexible ecosystem for the cryptocurrency industry. Over the years, so many projects have been built which utilizes ERC-20 tokens and ERC-721 tokens. ERC-20 tokens (fungible tokens) have been very useful as they serve as a medium of exchange with other coins, voting rights in a community-driven platform, staking to earn passive income. ERC-20 tokens are identical to each other and these make them interchangeable and divisible with other assets of equal value. This means that there's no unique value or characteristics associated with them. There was a need to create something unique, a token that can't be interchanged and also a token that can't be divisible or replaceable by any other asset. This token will maintain a verifiable identity to the owner or creator which is registered on the blockchain. These gave rise to the ERC-721 token (Non-fundable token). Developers realized that the technology behind ERC-721 tokens can be used to create unique items which cannot be interchanged or divisible.
As times goes on, a setback was noticed on both ERC-20 and ERC-721 token. A new smart contract must be deployed when creating a new token and this lead to a high cost of gas fees. Another setback is that transaction between both tokens are very difficult and the gas fees incurred is because both tokens are not compatible with each other.
These setbacks gave rise to the technology behind ERC-1155 tokens which was first discovered by Enjin in 2017. According to Enjin, the ERC-20 and ERC-721 tokens are not flexible enough to suit their project. Enjin needed a Multi-token standard that can manage multiple tokens in a single smart contract. Enjin needed an efficient way of transacting multiple tokens in a single transaction at very low gas fees.
ERC-1155 tokens also known as multi-standard tokens are digital tokens on the Ethereum network which is used to create both utility tokens (fungible tokens) and security tokens ( non-fungible tokens). ERC-1155 tokens transactions of multiple tokens in one smart contract which will help to save transaction cost. Let's explore the features of ERC-1155 token.

Features of ERC-1155 token

Many Tokens in a single Smart Contract

ERC-20 can incorporate as many tokens as possible in a single smart contract. This will ease the burden in the Ethereum network to create a new smart contract for each class of token. These tokens can be fungible or non-fungible tokens.

Incorporate Batch Transfers

ERC-1155 makes it possible to transfer multiple tokens in a single transaction. This offers a cheaper way of transferring funds.

Security of Funds

ERC-1155 facilitates the transfer and exchange of different types of token more securely without any third party. Similar, ERC-115 has a verification function that verifies transactions and ensures funds are not lost. This is a major barrier in ERC-20 where funds are lost completely when the receiving address is incorrect. ERC-1155 will guarantee trust and restore confidence among users.

Data Economy

One of the main purposes of the ERC-1155 token is to initiate multiple tokens into a single smart contract. This makes creating a new token very simple and less costly because no new smart contract is required. Unlike ERC-20 and ERC-721 token where new codes are needed in other to deploy a new smart contract. This helps to reduce the high cost of gas fees needed to deploy a new smart contract.

Elimination of Legacy Metadata

In the ERC-1155 standard, every metadata related to a token is all moved to an external JSON file(JavaScript Object Notation). The idea to move metadata of a token was gotten from the ERC-721 metadata extension but new improvements were added in ERC-1155 which include:

• Token Symbol: This feature was eliminated in ERC-1155 as it was considered not valuable data for an asset. The symbols are only tickers that are considered necessary in currency trading to differentiate trading pairs.
• Token name: ERC-1155 considered adding token in the JSON Metadata to be more convenient and not on the blockchain as this can be a burden on the blockchain.

Benefits of ERC-1155

• It enables the transfer of multiple tokens both fungible and non-fungible token in a single smart contract.
• It saves enormous gas fees needed by facilitating a more efficient way of carrying out transfers of assets.
• ERC-1155 facilitates atomic swaps of different tokens in a very way. This will help eliminate the difficulty involved in swapping a fungible token with a non-fungible token.
• ERC-1155 guarantees the safety of transfers by verifying transactions.

Explain how you verify the amount of ERC-721 tokens existing at the time of doing your homework. Present screenshot(use ether scan)

In this section, I will explain how you can verify the amount of ERC-721 token existing at the time of doing this assignment. This can be done by following the steps below:

Step 1:

• Open your browser and visit ether scan.io/.
• After the page has opened, click on the three dash line at the top right corner for a drop-down menu as shown below.

Step 2:

• After the drop-down menu, click on Tokens for another drop-down menu.
• After the drop-down menu, click on ERC-721 Top Tokens. This is shown below.

Step 3:

• After that, the ERC-721 landing page opens. From the picture below, we can that there are 11,137 ERC-721 Token Contracts available at the time of this writing.

Explain the TRC20 Token and check the amount of TRC20 tokens existing at the time of doing your homework. Present screenshot(Use tronscan).

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Just like ERC-20 is a token standard used for implementing smart contracts on the Ethereum network, similarly, TRC-20 tokens are programmed on the Tron network and the same purpose just like ERC-20 tokens. The Tron blockchain uses the TRC-20 token standard for implementing smart contracts using Tron Virtual Machine (TVM) . Tron Virtual Machine (TVM) was developed by Tron network to provide a more scalable, secured and stable custom-built chain system for developers. TRC-20 and ERC-20 are compatible with each other this is because TVM also uses a programming language like Ethereum.
Tron blockchain utilises the Delegated Proof of Stake (DPoS) to confirm transactions. This consensus algorithm has higher scalability and this makes transacting TRC-20 tokens very fast and cheap.

Unique Features of TRC-20 Token

• Transaction is very fast due to Tron's network Delegated Proof of Stake consensus algorithm.
• TRC-20 tokens are compatible with other smart contracts.
• Transactions using Tron's network is very fast due to the high scalability of the ecosystem, thus making transactions with TRC-20 very low.
• TRC-20 tokens are flexible and can interact with other Dapps built on Tron Blockchain.
• Security of TRC-20 tokens is guaranteed through the peer-to-peer network system of Tron blockchain. This makes ot very difficult to hack or manipulate transactions.

Just the ERC-20 token has its standards and rules, developers must adhere to certain rules to ensure meet the requirements and maintain the features of TRC-20 tokens. These includes:

Optional Rules

• Name of the token:This is the name of the token written in full. For example JUST for JUST token.
• Token Symbol: This is the abbreviations of the token. Example JST for JUST token. This is considered optional as the token can answer its name. But it is necessary during trading as exchanges use it to differentiate trading pairs.
• Token Decimals: This refers to how divisible a token can be. It can range from 0 to 19 or even higher.

Mandatory rules

• Total Supply of Token: Here, the developer determines the number of tokens that can exist in the blockchain. This is always greater than or equal to the circulating supply of the token.
• Balance OfThis returns and displays the balance of the token in a user's account.
• Transfer: This determines the flexibility and compatibility of the token to be moved from one smart contract to another.
• Transfer From: This enables a third party to transfer tokens from the owners account with the owner granting the permission. This is usually seen when a user is trying to transfers funds from DApps. For example, supplying token to JUSTLEND platform.
  -Approve: Just like I explained, when trying to access your wallet through a DApps platform, this function allows a user to permit the platform to transfer funds from your account.
• Allowance: This questions the transfer limit placed on a users account and this is called up when a user tries to exceed the amount of token he can transfer.

How to check the number of TRC-20 tokens available at the time writing this post

To check the number of TRC-20 tokens available when writing this post, we can follow the steps below.

Step 1:

• Open your browser and visit tronscan.org.
• After the page has opened, on the homepage, click on the three dash line at the top right corner as shown in the picture below.

Step 2:

• After you have clicked the three dash line at the top right corner, a drop-down menu pops up, click on Token.
• After that, another drop-down menu is shown, click on Token Tracker. This can be shown in the image below.

Step 3:

• After you have clicked Token Tracker, a page opens up which contains all the number of tokens on Tron Blockchain.
• Click on TRC20 to view the number of TRC-20 tokens available on the Tron Blockchain. From the picture below, we can see that a total number of 16,072 TRC-20 tokens are available at the time of writing this assignment.

In conclusion, the integration of the ERC-1155 token on the Ethereum blockchain has been an amazing innovation making it easy to carry out transfers in a more efficient way. This can help to clear the traffic on the Ethereum network making it faster to carry out transactions. The integration of ERC-20 has brought a major development in cryptocurrency and I hope to see more development in the future to eliminate the challenges encountered in the present system.

Note: All images used in this post are screenshots taking from my Chrome browser unless stated otherwise.

Thank you professor @pelon53 for this amazing lesson. It is my pleasure to be your student.