What are EIP and ERC?

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Have you ever wondered how changes are made to the Ethereum blockchain or how developers create new tokens and smart contracts on the Ethereum platform? Enter EIP and ERC, two acronyms that play a crucial role in the evolution and standardization of the Ethereum ecosystem. EIPs propose improvements to the Ethereum protocol, while ERCs define the rules and specifications for creating new tokens and smart contracts. Let’s dive deeper into what EIP and ERC are and how they shape the future of Ethereum.

What is EIP?

EIP stands for Ethereum Improvement Proposal. It is a process that allows members of the Ethereum community, including developers, researchers, and users, to propose improvements or changes to the Ethereum protocol. EIPs are formal proposals that describe the rationale behind the proposed change, the technical specifications, and the potential impact of the change on the Ethereum ecosystem. 

EIPs can cover many topics, including changes to the Ethereum Virtual Machine (EVM), Ethereum client software improvements, and Ethereum consensus algorithm updates. Once an EIP is submitted, it goes through a review process by the Ethereum community, including developers, researchers, and users. If accepted, the proposal will be implemented in a future version of the Ethereum protocol.

EIPs are essential to the Ethereum ecosystem because they allow for community-driven innovation and improvement. Through the EIP process, the Ethereum community can continuously evolve and improve the Ethereum platform to meet the needs of its users.

How can I Create an EIP, and what’s the Process looks like?

To create an EIP, you must first write a proposal outlining the proposed change, its rationale, and the technical specifications. Once you have written the proposal, you can submit it to the Ethereum GitHub repository as a pull request.

After the pull request is submitted, it will go through a review process by the Ethereum community, including developers, researchers, and users. The proposal will be discussed and evaluated, and if it is accepted, it will be assigned an EIP number and added to the list of EIPs. If the proposal is not accepted, the author may revise and resubmit the proposal at a later time.

What is ERC?

ERC stands for Ethereum Request for Comment, and it is a protocol for proposing and standardizing new token and smart contract standards on the Ethereum blockchain. ERCs are similar to EIPs in that they are proposed changes to the Ethereum ecosystem, but ERCs specifically focus on defining new token and smart contract standards.

ERCs define the rules and specifications for creating new tokens or smart contracts that can be used on the Ethereum blockchain. This includes the token’s name, symbol, decimals, and total supply. ERCs are typically proposed by developers, but anyone in the Ethereum community can also propose them.

ERCs are essential because they provide a standardized way for developers to create new tokens and smart contracts on the Ethereum blockchain, making integrating these projects with other Ethereum-based applications and services more accessible.

As an example, the ERC-5164 lays down a cross-chain execution interface for EVM-based blockchains in terms of Ethereum bridges, and ERC-4337 talks about Ethereum account abstraction using alt mempool. 

The Participation and Decision Process for ERCs

The participation and decision process for ERCs is similar to that of EIPs. Once an ERC proposal is submitted, it goes through a review process by the Ethereum community, including developers, researchers, and users. The proposal is discussed and evaluated, and if it is accepted, it will be assigned an ERC number and added to the list of ERCs.

The ERC proposal can be revised based on community feedback and resubmitted for further evaluation. Once the ERC is finalized, it becomes a standard that developers can use to create new tokens and smart contracts on the Ethereum blockchain. Individual developers and projects ultimately decide to adopt a particular ERC standard based on their specific needs and requirements.

Difference Between ERC and EIP

The detailed difference between ERC and EIP is discussed below:

Basis	ERC	EIP
Full form	Ethereum Request for Comment	Ethereum Improvement Proposal
Focus	Token and smart contract standards	Protocol improvements and changes
Examples	ERC-20 (fungible tokens), ERC-721 (NFTs)	EIP-1559 (transaction fee model), EIP-155 (hard fork)
Proposed by	Developers and community members	Developers and community members
Purpose	Standardization of token and contract design	Improvement and evolution of the Ethereum protocol
Decision	Adopted by individual developers and projects	Implemented in a future version of the Ethereum protocol

Conclusion

We hope the concepts of EIP and ERC and the difference between ERC and EIP are clear to you by now. EIPs and ERCs are important parts of the Ethereum ecosystem, allowing for community-driven innovation and improvement. While EIPs focus on protocol improvements and changes, ERCs define the rules and specifications for creating new tokens and smart contracts on the Ethereum blockchain.

Together, these two processes allow developers and community members to contribute to the development of the Ethereum platform, helping it evolve and meet the needs of its users. As the Ethereum ecosystem continues to expand and develop, the EIP and ERC processes will remain essential tools for driving innovation and progress in the blockchain space.

Frequently Asked Questions (FAQs)

1. What are EIP and ERC Ethereum Standards?

EIP and ERC are both Ethereum standards, but they have different focuses. ERC stands for Ethereum Request for Comment and is a protocol for proposing and standardizing new token and smart contract standards on the Ethereum blockchain. ERCs define the rules and specifications for creating new tokens or smart contracts that can be used on the Ethereum blockchain. On the other hand, EIP stands for Ethereum Improvement Proposal and is a protocol for proposing changes and improvements to the Ethereum protocol itself. EIPs are designed to improve and evolve the Ethereum platform better to serve the needs of its users and developers.

2. What is ERC-20 vs EIP-20?

ERC-20 is a widely used Ethereum token standard for making fungible tokens on the Ethereum blockchain. It defines the rules and specifications for creating tokens that can be used interchangeably with other tokens of the same type, making them easily tradable and transferable. EIP-20, on the other hand, is a proposed improvement to the Ethereum protocol that aims to provide a more standardized way of handling token transfers within smart contracts. It proposes a new standard for token transfers that would be more secure and efficient, with additional features such as batch transfers and fee delegation.

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