ERC-827
ERC-827 is an ETH token standard that addresses the existing limitations of ERC 20 when it comes to the implementation of calls in transfers and approvals in particular.
What Is ERC-827?
ERC-827 is one of the many token standards
developed on the Ethereum network to facilitate the network's various token contracts. ERC-827 is an updated version of the Ethereum network's currently existing stable token
ERC20.
Under the present ERC20 paradigm only values may be exchanged. ERC827, on the other hand, allows Ethereum users to transmit currency and data. It also allows tokens to be authorized for spending by other on-chain third-party companies.
It is a unique token standard that would enable transactions to be completed using the success of a recipient contract mechanism. It contains transferAndCall, transferFromAndCall, and approveAndCall functions in addition to the regular ERC20 operations. In addition to the basic ERC 20 parameters, they all contain an additional _data parameter. It works similarly to ERC 677, as it also utilizes a fallback method, it calls the function supplied in the _data parameter and begins the transaction if the function returns true.
Since it's an extension of ERC 20, all the other functions are similar.
It will mostly be used for third-party apps built on the Ethereum blockchain, and it competes with
ERC 223 for general adoption. It
addresses the same problems as ERC 223 and allows users to pass data and tokens to smart contracts and execute them. This means that it may be used to tackle problems other than tokens becoming stuck in smart contracts.
ERC 827 appears to be gaining more attention over ERC 223 in recent times, as it has been incorporated by Zeppelin in its open-source contracts, whilst ERC 223 is still not present in the tokens offered by them.
Consider a fictional shopping cart on a merchant's website to better understand how ERC 827 tokens are used. Items waiting to be purchased are stored in a shopping cart. However, it cannot proceed to checkout unless the user has the necessary amount of tokens. When someone transfers tokens to the cart's owner, certain data is provided along with the cart, which calls another function included within the contract that checks if the cart owner has the adequate balance to checkout the products saved in the cart.
This new ERC20 superset is intriguing and has the potential to revolutionize our perception of the token standard, as it addresses some of the most serious issues while maintaining its compatibility with ERC20 tokens. ERC827 is more likely to be popular among new projects.
Users will not only be able to reap the benefits of the new standard, but they will also be able to continue utilizing the ERC20 token standard that they have become accustomed to. It's a win-win situation. Its usefulness and efficiency are also significant advantages for this new standard.