The ERC-20 Ethereum token standard may be out of the stage, and the new version of ERC777 will debut with three major advantages

As the first generation of digital token standards, ERC-20 has made great contributions to token projects that use the Ethereum blockchain network. But now, this token standard may be out of the stage of history, because Ethereum has launched a new "improved version" of the token standard ERC777, which will be used to issue tokens on its blockchain, and brings a series of new features and capabilities.

ERC is the acronym for Ethereum Request for Comments, literally translated as Ethereum Request for Comments, it can also be said to be the protocol proposal of Ethereum developers. There are many versions of the proposal. ERC20 was born in 2015 and is one of the most widely known token standard proposals, and it is also the version used by many initial coin offering (ICO) tokens today. Simply put, ERC is not only a kind of token (Token), but also a token protocol.

It is undeniable that ERC-20 is a very successful token standard, but at the same time it does have some problems, such as some contracts cannot support ERC-20 tokens, and once used, it is likely to be permanently locked. Now using the new ERC777 standard, on the one hand, these problems can be alleviated, and on the other hand, it can also fully serve as the old version of the token standard.

So, what are the benefits of the new Ethereum token standard? There are three main points:

First, when it comes to token transactions, the new ERC777 Ethereum blockchain token standard will greatly reduce friction, because in the new standard, some advanced transactions—such as in decentralized exchange contracts Token exchange - can be completed in one transaction instead of two transactions as in the past. In this way, not only the cost of token exchange is greatly reduced (cheaper), but the exchange speed can also become faster.

Second, the new ERC777 token standard will support the sending of transaction data, which was not possible with digital tokens using the ERC-20 standard in the past. This means that the new token standard utilizes smart contract functionality, enabling the creation of tokens with custom capacity.

Third, the chances of accidental loss of cryptocurrencies will be greatly reduced. Cryptocurrency addresses compatible with the new token standard ERC777 (and ERC820) can choose to reject certain digital token transactions, for example, you can reject some blacklisted addresses, so blockchain security can be improved to a certain extent.

Today, the increasingly fierce competition in cryptocurrencies is constantly leading to the development of new protocols. The introduction of these new standards will help developers solve various problems in existing protocols, such as security holes, inefficiencies, and more. For Ethereum, the emergence of each new standard also brings a more advanced set of functions. When the time comes to 2018, we can see that the time for the arrival of the new protocol is ripe, so can ERC777 surpass the ERC-20 token standard and stand out in the "arms competition" of various blockchains? Perhaps, only time will give the answer.