What is ERC? Explanation of the key token standards of Ethereum in 2025

In the world of blockchain, Ethereum is not only the leading platform for decentralized applications but also the birthplace of industry-defining token standards. Among them, the question "What is ERC?" has become increasingly important for developers and crypto users—especially as ERC tokens dominate the realms of DeFi, NFTs, and the broader Web3 space.

What is ERC? Basic definition of Ethereum Request for Comments

ERC stands for Ethereum Request for Comments, which is a set of technical standards proposed by developers to introduce new features on the Ethereum blockchain. These standards ensure interoperability between tokens, smart contracts, wallets, and decentralized applications (dApps).

Once the ERC standard is accepted, it becomes a foundational part of the Ethereum infrastructure. ERC simplifies the process of issuing new tokens, enabling thousands of Web3 projects to run smoothly on a shared network.

In the context of ERC-20, what is ERC: The most common token standard

Among all ERC standards, ERC-20 is the most widely used standard and is the preferred standard for creating fungible tokens. It outlines the following basic functions:

• Total token supply
• Transfer tokens between wallets
• Check account balance
• Authorized Token Transfer

Well-known tokens such as USDT (on Ethereum), UNI, LINK, and AAVE follow the ERC-20 standard. This compatibility allows them to be easily supported by popular wallets like MetaMask, centralized exchanges, and DeFi applications.

What is ERC in the NFT field? Understanding ERC-721 and ERC-1155

In addition to ERC-20, Ethereum also supports non-fungible tokens (NFTs) through ERC-721. Each ERC-721 token represents a unique digital asset, commonly used in blockchain games, digital art, and collectibles. The ERC-1155 standard provides a more advanced model that allows for the creation of both fungible and non-fungible tokens within a single smart contract. This flexibility makes it particularly suitable for Web3 games, thereby reducing gas fees and optimizing asset management.

What role does ERC play in the Ethereum and Web3 ecosystem?

"What is ERC?" This question is not just a definition—it is a gateway to understanding how Web3 applications communicate. The ERC standard serves as a common language, enabling wallets, exchanges, and dApps to interact seamlessly.

When tokens follow the ERC standard, they can be immediately integrated with Uniswap, OpenSea, decentralized wallets, and Layer-2 networks. This enhances compatibility and accelerates innovation in the blockchain field.

What is the use of ERC in real-world applications?

By 2025, tens of thousands of ERC tokens are in circulation. Some of the most notable use cases include:

• Stablecoins: Tokens like USDT and USDC use ERC-20 to maintain stability and liquidity.
• DAO Governance: Tokens like COMP and AAVE enable on-chain voting through ERC-based functionalities.
• NFT Market: Platforms like OpenSea support ERC-721 and ERC-1155 tokens for unique digital items.
• GameFi: Web3 games rely on ERC tokens as in-game currency and digital assets.

These standards ensure that tokens can be easily traded, stored, and integrated across major blockchain platforms.

What are the limitations of the ERC standard?

Despite the success of the ERC standards, they are not without drawbacks. On Ethereum, transactions often face high gas fees, especially during periods of network congestion.

Some older ERC standards also lack strong security features or support for upgrades. In addition, ERC tokens themselves do not support advanced features such as transaction refunds, user protection, or real-time transfers.

To address these issues, new standards such as ERC-777 and ERC-4626 are being developed to enhance the security, efficiency, and user experience of Ethereum-based applications.

What is the future of ERC in Ethereum development?

Ethereum continues to evolve through significant upgrades such as Danksharding, Layer-2 aggregation, and ERC-4337 (account abstraction). These enhancements aim to simplify blockchain interactions by introducing gasless transactions, smart wallets, and multi-signature capabilities.

Looking ahead, the integration of ERC standards with technologies such as artificial intelligence, big data, and the Internet of Things may give rise to new types of tokens that can achieve automated payments, decentralized identities, and real-world infrastructure through DePIN (Decentralized Physical Infrastructure Networks).

Conclusion

Understanding what ERC is the first step in mastering the operation of thousands of tokens in the blockchain ecosystem. ERC standards are not just technical definitions—they are pillars of Ethereum's growth, interoperability, and dominance in Web3. By 2025, as the ecosystem becomes increasingly complex and diverse, ERC will continue to evolve to meet the needs of users, developers, and the global community. Keeping up with the latest ERC standards is crucial for optimizing the blockchain experience in the Web3 era.

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