Crypto Academy Week 12- Homework Post for Professor @pelon53 - Topic: Tokens, Part 2: ERC-20 and ERC-72.
Two weeks ago, we learnt about about crypto tokens. We saw that although crypto tokens and cryptocurrencies are both virtual, they are different. As the crypto rule says "every cryptocurrency must have it's own blockchain". Tokens, on the other hand are built on an already existing blockchain.
Currently, there are over 3,000 tokens in the world. These tokens are lunch in blockchain platforms such as Etherum and Tron. Due to how easily tokens can be created using standard tokens such as ERC-20, ERC-721, TRC-20 and lots more in the aforementioned platforms, it is not surprising how speedily the number keeps rising daily.
In the ethereum blockchain network, using smart contracts, a user can create his own tokens. These tokens, which can be fungible or non-Fungible, can be used for several purposes as designed by the creator. For instance, a streaming company like Netflix could easily design a token to serve as a payment for streaming. The amount of token a customer buy will determine how long you get to enjoy the previleges of the site.
In today's lesson, Professor @pelon53 while teaching on the topic "Tokens, Part 2: ERC-20 And ERC-721" showed us the difference between ERC-20 and ERC-721 and how to check the number of them in existence. This article is my response to the assignment given by Professor @pelon53 after the class.
Question 1: EXPLAIN THE ERC-1155 TOKEN IN DETAIL.
ERC-1155 is a standard digital token which was created on June 17, 2018 by Enjin using the Etherum network. Although this token is not the first in the blockchain, it is arguably the most special. This is because the video game tech company built ERC-1155 to be more encompassing than ERC-20 and ERC-721. Unlike ERC-20 which can be used for creating fungible tokens, and ERC-721 which is used for creating non-fungible tokens, ERC-1155 can be used to create both non-fungible tokens and fungible tokens. It is a semi-fungible token.
According to the statement release by Enjin, the company developed the token because ERC-20 and ERC-721 token standards couldn't be adjusted to fit into the type of game they wanted to build. ERC-1155 has some properties which makes it better than the traditional standard Ethereum tokens.
These characteristics are explained by comparing them below.
1. Many Tokens inside one Smart Contract:
In ERC-20 and ERC-721 tokens, for each group of tokens, a new smart contract must be deployed. It is not so with ERC-1155. In the case of ERC-1155, a single contract can be used to issue uncountable tokens.
2. Single Transfer and Reduction in transfer cost:
To transfers multiple tokens based on ERC-20 and ERC-721, it must be transferred in batch. With ERC-1155, it can be sent in one transaction. This implies reduction in cost of transaction.
3. Security and Elimination of Third party:
Using ERC-1155 developers can build a system that enables the direct exchange of a type of token with another, without the need of any third party interference. Also, the fact that all these transactions are done on the Etherum blockchain makes it highly secured and free from fraud.
4. Token Metadata:
In ERC-1155, every information of a given token are stored in an external JSON file. (Enjin got this idea from the Metadata Extension used in ERC-721).
5. Token Structure:
Comparing ERC-20 and ERC-721 token standards with ERC-1155, there are things which are considered basic by the former which are omitted in ERC-1155. Those things are: name and symbol.
Name:- Enjin considered storing a name on a blockchain as cumbersome. They believe that tokens will be best defined based on JSON Metadata Standard. Thus, all ERC-1155 token bear a JSON related name.
Symbol:- Enjin internationally omitted symbols from the token structure because they considered it irrelevant. In their defense, they said that symbols are only useful during crypto currency trading, but when it comes to tokenizing a more general items, they aren't necessarily.
6. Decimals:
Although ERC1155 tokens can be fungible, they don't have decimal (i.e. they are indivisible). Remember that ERC-1155 is designed to behave partly like ERC-20 which is fungible but divisible and ERC-721 which is non-fungible and cannot be divided.
In summary, ERC-1155 are semi-fungible tokens designed by Enjin using the Etherum platforms. This tokens while in a wallet can act like fungible and non-fungible at the same time. Currently they are used majorly in Enjin's games and ecosystem, and since they are not specifically named, a player can use an asset obtained from a game, to purchase something else in several other related games.
Question 2: EXPLAIN HOW YOU VERIFY THE AMOUNT OF ERC-721 TOKENS EXISTING AT THE TIME OF DOING YOUR HOMEWORK. PRESENT SCREENSHOT (USE ETHERSCAN).
ERC-721 is a standard token in the Etherum blockchain network. It is the token used in creating non-fungible tokens such are Cryptokitties, Thor's Hammer and lots more. The ERC-721 was created in 2017, after the need for a token, which is unique, non-destructible and indivisible arose.
NFTs draw their worth from the fact that they are only one in the whole world. A single NFT created using ERC-721 can be worth millions of dollars. Take for instance the first Cryptokitty (virtual cat) ever sold, Genesis was sold for ETH246.9255 ( about $117,712).
Steps I followed in determining the total number of ERC-721 tokens in the world, (as of the time of this assignment).
Step 1:
First thing I did was to launch my chrome, then log in to Etherscan website.
When the site opened, I saw that it gave lots of information about the blockchain. Among many things, I noticed three lines at the top right of the page. These three lines represents menu, so I clicked on it.
Step 2:
After clicking on the menu, a menu pops up. I click on Tokens as shown in the screenshot below.
Step 3
When I clicked on Token, a drop-down menu containing ERC-20 Top tokens, View ERC-20 Transfer, ERC-721 Top tokens, and View ERC-721 Transfer. Since I want to verify the total number of ERC-721 Top tokens, I clicked on it as shown in the screenshot below.
After clicking on it, a new page came up showing that the total number of ERC-721 Token Contracts are 11,042. (See screenshot below).
Question 3: EXPLAIN THE TRC20 TOKEN AND CHECK THE AMOUNT OF TRC20 TOKENS EXISTING AT THE TIME OF DOING YOUR HOMEWORK. PRESENT SCREENSHOT (USE TRONSCAN).
TRC-20 token is a standard digital token which runs on the TRON blockchain. Its operation is based on the implementation of smart contracts. Just like the ERC-20, TRC-20 are used in creating fungible tokens. TRC-20 and ERC-20 are very similar to each other. Just the same way ERC-20 token can be sold in an exchange or offered during an ICO, TRC-20 can too.
It's worth noting that a user cannot access TRC-20 through API (application programming interface), and each time API deposit and transfers are made, the user is charged bandwidth costs. To create a TRC-20, all you need is a tron wallet and a smart contract.
TRC standard for "Tron Request Comment'.
Structure Of The TRC-20 Token
When creating a TRC-20 Token, you must specify the following.
Name: The token should have a name. It's name will help distinguish it from other tokens in the blockchain.
Symbol: Since it's a fungible token, it should have a symbol. The symbol of a coin is very crucial during crypto trading, as it differeniate one token from the other without consuming much space.
Decimals: This shows to how many decimals the coin can be divided. It could be a 1,000 or more.
Total number of tokens: Here you will specify the total number of tokens that will ever be created. This number also determines the number of tokens in circulation.
BalanceOf: Here, programs are written that will enable an owner know how much he has left in his wallet.
TransferFrom: This specifies that one can transfer to someone from a wallet address.
Transfer to: The command here allows a token to be transferred to a certain wallet address.
Approve: Here the developer specifies the amount or limit for withdrawal. Once a user tries to withdraw pass a certain amount, the withdrawal will be denied.
Tolerance (Allowance): If let say a user has a withdrawal limit of 2,000. if within the day he has already made 1700 withdrawals and on his last withdraw he requested for 500, only 300 will be approved.
With the help of allowance, the remaining 200 which wasn't approved won't be lost, rather it will be safely returned to his wallet.
Steps I followed in determining the total number of TRC-20 tokens in the world (as of the time of this assignment).
Step 1:
First thing I did was to launch my chrome, then log in to Tronscan website.
When the site launched, I saw that it gave lots of information about the Tron blockchain, and the price of TRX at the moment. Among several things, I saw three lines at the top right of the page. These three lines represents menu, so I clicked on it.
Step 2:
After clicking on the menu, a menu pops up. I clicked on Tokens as shown in the screenshot below.
Step 3
When I clicked on Token, a drop-down menu containing Token Tracker and Token Records. I clicked on Token Tracker as shown in the screenshot below.
When I did, I was redirected to a page containing data such as Total Tron token the last 7 days.
Step 4
To check the exact number of TRC-20 currently in existence, I clicked on "TRC-20".
After clicking on the TRC-20, I saw that the total number of TRC-20 token is existence is 15,808.
CONCLUSION
While doing the assignment, I learnt the word "semi-fungible" tokens (ERC-1155). I knew about fungible and non-fungible before now, but I didn't know we had semi-fungible tokens. I couldn't help but think that six (6) years ago, this concept did not exist. If we could see such rapid advancement in fintech, we can only but wonder what advancement we will likely see in the next six (6) years.
Thank you so much Professor @pelon53, for the amazing lesson. I learnt a lot of new things.
REFERENCES
Gracias por participar en Steemit Crypto Academy.
Calificación: No apto.
Please Professor @pelon53, I now have above 100 SP. Please sir, review my work again please. I will be grateful please.
