Unpacking Ethereum Token Standards From Foundational to Cutting Edge - Susie Wang

So, let's get started, since all the friends are here. Hello everyone, my name is Suzy. Greetings. I'll tell you a little about myself, and also make a small disclaimer. I have been involved in several projects, including DeFi, social graphs, metaverses, and NFTs, and was also responsible for partnerships and development at BNB Chain—a first- tier blockchain, and my specialization is growth, ecosystem development, business ecosystem development, business development, marketing, and operations.

So this is a small caveat: since I have experience in these very areas. I am not a technical expert. So I won't go into much detail on the technical side. But if you want to chat, we can certainly discuss the technical aspects later. I am always open to discussions.

But let's move on to today's topic. Before we dive into the ERC token standards, we need to learn a little more about EIP. EIP stands for Ethereum Improvement Proposals . The analogy here is this: this is a suggestion box for the Ethereum blockchain. If you have a cool idea for Ethereum, whether it's new features, changes to the system, or just information sharing, you can submit an EIP standard.

There are different types of EIP, including standardized EIP ( standardized EIP ( standard track). They are radically changing the system, these are very large-scale things. They can define the working mechanisms of the Ethereum blockchain, there are also meta-EIPs (processes and environments) and informational EIPs. They are actually intended for the exchange of information and recommendations. Let's take a closer look at the categories of standardized EIPs.

There are four categories within standardized EIPs. The first is the core. These are change proposals that require consensus or even modification of the Ethereum core code. This is very serious, there are other categories, for example, for example, networking, aimed at improving Ethereum's network protocols. For example, how Ethereum nodes interact with each other falls into this category.

The third category is interface. For example, if you want to make changes to the Ethereum client API or standards. That is , how we interact with Ethereum falls into this category. And finally, ERC. These are application-level standards and conventions .

I want to talk a little bit about the review processes, just in case any of you want to submit your own EIP proposal. So, first you need to create a draft of your EIP, after which you will go through the review and feedback stages, then there will be a final call for comments, and finally it will be published on Ethereum. And if you want to write a good EIP, there are certain standards. For example, it should be well written and thought out. Also, if you want to submit an EIP, one EIP should cover only one idea or proposal.

So if you have several main ideas, you should submit several EIPs. Additionally, as authors and content creators, you must reach consensus and resolve disagreements. After all, you are the parents of these EIP standards. Therefore, you need to take care of them. This is truly extremely important for the Ethereum network.

So take this seriously. We are going to look at some of them in detail. So, let's delve into ERC. ERC stands for Ethereum Request for Comments . If you go to the ERC website, for example, to the ERC website, for example, you will see a lot of them, including perhaps their status perhaps their status .

Specifically, 20,721, and also, as Vitalik mentioned in the last session, possibly 12771. Let's take this as an example. For example, it has a title and subtitle, a standard signature verification method for contracts, as well as a table of contents, abstract as a table of contents, abstract , motivation, specification, justification, code, copyright, and citations. It's like writing a scientific paper. So you need to be very careful about everything.

All information is also available on the website. So check it out. I know you guys are more tech-savvy than I am. You know a lot about codes and everything, but I want to mention a little bit about ERC-20 and ERC-721, since this is something we can't miss. The first of these miss.

The first of these is ERC-20, which stands for fungible token fungible token . This is the brainchild of Fabian and Vitalik, which was introduced in November 2015. This is the first universal standard for Ethereum tokens, and the analogy I want to use I want to use is a common language, like English, for all tokens created on Ethereum. Since we all use English, I can communicate with you and you can communicate with me. It's not quite like other languages, like Mandarin.

There are certainly other token standards that are suitable, perhaps for some regions, but not quite as much as ERC-20. and some functionality including total offer, balance, spending limit, transfer spending limit, transfer , approval and transfer on behalf, and we also have other speakers from OpenZeppelin, which to me is like an open recipe. So, if you have all the code from this library, you can bake your own cake, but you can add your own “ your own “ icing” to it, like fruit, to the ERC token standard you want to develop. But not everything is so sweet. ERC20 is not all rainbows and sunshine, although it is a real breakthrough.

For example, if you were here in 2016, you remember the attack on The DAO. Then the hacker found a loophole in the loophole in the token's smart contract. This caused the loss of 15 million, which disappeared into the "black hole." And there are also certain restrictions. I like this meme because the ERC20 standard requires the creation of a separate smart separate smart contract for each unique token type or combination of customizable features.

Therefore, the market is currently experiencing an explosive growth in the number of ERC20 token standards and smart ERC20 token standards and smart contracts. And it becomes very difficult for people to conduct proper due diligence on these contracts. Another token standard that we should definitely emphasize is ERC-721. Yesterday we had a speaker, Pragma Deer from Dapper Labs, who is also the author of this token standard. It was created in 2018, and the name itself suggests that it is a non-fungible token.

You all know about NFTs. These tokens are unique and have their own special attributes that distinguish them from any other NFT. For example, Azuki has attributes such as background, clothing, eyes, hair, mouth, type, etc. that make them different from others. I hope from others.

I hope you all went to Pragma yesterday because it was really cool and you could get a Cryptokitty there. So, one of the ERC-721 use cases is definitely Cryptokitties. I won't go into detail, but if you want to explore this, it's extremely important. The limitations of ERC- important. The limitations of ERC- 721 are that it does not offer quantitative characteristics, so ERC-721 tokens are less suitable for computation, have less liquidity, and are more difficult to manage.

It is also not a very good solution for financial instruments such as bonds, insurance policies, or vesting plans. An analogy I like to use. If you've watched the Yu-Gi-Oh anime, it's an anime from the last century, and it's also a card game. So, if I want to share a share a Yu-Gi-Oh card with my sister. So, I can't just tear it in half and send one part without losing its value.

So the ERC-721 standard does not allow users to divide these NFTs and send them in parts. And yes, especially with financial instruments like bonds or insurance policies where we need to separate them, ERC-721 is definitely not a good fit. I want to pay tribute to ERC-6551, as well as 777 and other token standards, but we are limited on time today. So I won't go into detail, but you can find their authors externally or on other panels to discuss these token standards. But today we will mention ERC-1155 and ERC-3525 mention ERC-1155 and ERC-3525 , which exist in the system.

They are trying to improve the ERC-20 and ERC-721 standards. So, ERC-1155 is also a very fundamental standard. It is called the multi- multi- token standard. Imagine that this is a vending machine where you can buy different types of food. If I want to get a soda and a bar, I have to press the soda number, insert my card, and it falls out.

If I want a candy bar—the number of the candy bar, the card, and it falls out. But if you imagine this machine as an Ethereum blockchain, then every time I insert my card, I have to pay a gas fee. This is not very efficient, either in terms of time or financially. But ERC-1155 solves this problem by combining soda and a candy bar into one request, or by adding digital collectibles to it. So I only have to attach the card once and everything falls out at once.

We must give credit to Enjin, the authors of this token standard. This is a blockchain gaming company, and they use ERC-1155 for their game tokens, avatars, game assets, and land. As we said, each token standard has its advantages and disadvantages. This is what I want you all to take away from today's panel discussion. The limitations of ERC-1155 are that, despite its innovation and underestimation, it is very complex.

Additionally, we see that each token has its own set of rules, so we want to combine them together. For example, using my analogy: if I want to combine soda and candy bar into one query— soda remains soda, candy bar remains that, why would we even combine them? There may be some inconsistencies in this slot. So let's add one more, um, literally one sentence about this. I think there may be real applications for 1155.

For example, real asset management, logistics chains—that is, in addition to the crypto industry in addition to the crypto industry , we can definitely use this token standard in other areas. So, ERC- other areas. So, ERC- 3525 adds another layer on top of everything else. It was introduced by the Soft Protocol team in late 2020, so it wasn't that long ago. It is called a semi-fungible token.

Let's imagine something together. If I had a bottle of water, um, sorry, I didn't bring my bottle today, but let's imagine it's sitting here. This is a container containing a unique object. Most often it is indivisible and should be used as a whole. But with the ERC-3525 whole.

But with the ERC-3525 , like in this picture of a container with many bottles inside, I can pour it into smaller bottles and distribute it to distribute it to anyone in this audience or on this panel. It is divisible, it can be combined, it is a universal digital container and a visualized smart visualized smart contract. If Alice wants to send Bob an NFT for $50, Bob will receive two NFTs for $50, but with a semi-fungible ERC-3525 token, he can combine them to form an NFT for $100. So fractional ownership becomes a reality. Another example I want to give you: imagine I'm a digital artist and I'm creating a masterpiece.

For example, this "Mona Lisa" here. If I wanted to sell it now, I would probably issue an ERC-721 token and sell it as an NFT. But thanks to ERC-3525, I can break it up into pieces and sell it to everyone in this room, so that each of you gets a small piece of this work of art. If the market goes up, perhaps later this year, you can divide them into even smaller pieces and make a profit by simply reselling them. And if you ever want to put this masterpiece back together, for example for an exhibition in a library or museum, you can combine your pieces.

Therefore, it is both divisible and capable of unification. Now look at this aquarium. It's a transparent aquarium, so we can see how many fish can see how many fish , how many corals, and how much of everything else is inside. So, this is a visually accessible smart contract. You can preview and evaluate the quality of everything contained in this smart in this smart contract.

With the Salt protocol, they have digital vouchers where you can see all your financial investments with this NFT, so as an investor you can make informed financial decisions, minimize risks, and promote transparency. Let's remember the financial crisis of 2008 . With such transparency, we could mitigate the damage from a similar crisis using ERC-3525 or other token standards. This can also help in creating dynamic NFTs or dynamic semi-circulating tokens. Here is an example of using Chainlink to collect off-chain data through oracles.

And with ERC- through oracles. And with ERC- 3525, you can easily update, develop, adapt, or improve your NFT or SFT with additional information. This is a very visual picture: I see ERC-3525 and ERC-1155 in the middle of the spectrum, where ERC-20 is computable where ERC-20 is computable , but not self-describing. ERC-721, on the other hand, is self-describing but not entirely computable. But ERC-3525 and 1155 have both of these characteristics.

As well as certain data structures and, ultimately, tagged information. ERC-20 has a value, ERC-721 has a token ID, ERC-1155 has an ID, value, and metadata, and 3525 also adds a slot where you can add various data to that token and ID. Additionally token and ID. Additionally , 1155 supports batch transfers, and 3525 supports token transfers 3525 supports token transfers , which is also illustrated here. You can see the transfer from ID to ID, from token to token.

However, there are certain limitations. Although the 3525 standard is very functional, it is quite complex. Therefore, there is a higher probability of technical failures or security vulnerabilities. So as programmers you have to be very careful while writing code. For users: Although I mentioned the benefits of fractional NFTs, they are difficult to use, right?

Regular NFTs can be simply transferred, but fractional NFTs require more educational materials on how to manage a shared share of these assets. Here's the example I want to give—X Winner. This is a gaming platform where you can play free casual games with on-chain assets that use the ERC-3525 standard. So, with the help of ERC-3525 in gaming, we may see shareable in-game assets like tickets, characters, skins, weapons, bonuses, etc. And also, as in the case of fractional NFTs.

Sorry, something is blurry. We can get more liquidity in the market so you don't have to sell the entire NFT in its entirety. You can simply divide it into parts and perhaps sell the portion of your NFT that has a smaller financial investment in that part. We can also imagine new game mechanics for guilds. Guilds are currently being reduced in GameFi, if you're familiar with this topic.

We can combine these particles to pass the boss. Imagine that everyone in this room has a sword, and we can team up to defeat the boss together, instead of trying to play alone. I think socialization is very important for gaming. So now at GameFi, this is something we definitely want to work with. The second point is diversity, which can be united.

You know that variety is truly the spice of our lives, especially in games. If I play one game for 24 hours, I'll get tired. I just want to play something else. That's why we want to have diversity. Thanks to the ERC- diversity.

Thanks to the ERC- 3525, we can have different slots for different types of games and game genres. For example, we have puzzles, casual games for the first and second slots, and below them are slots, and below them are other games. For example, 2048, Sudoku, chess as puzzles, to which smart smart contracts, pools and algorithms are added. There are several demo versions: Sudoku and Pacman. I am an avid gamer and believe in the future of GameFi.

With this concept, we are creating Ads Winner and want to restore trust and confidence in GameFi. I often hear the question now whether GameFi is still relevant. GameFi is still relevant. GameFi is not just relevant, it is our future. All major Web2 companies are investing thousands and millions of dollars in developing their marketplaces and GameFi.

Using the ERC-3525 token standard, ERC-3525 token standard, we can reward time invested in these games. So, a minute of enjoyment from a game enjoyment from a game is a minute invested, so we can create a single leaderboard for all games leaderboard for all games . Instead of having one game with its own algorithm system, we can have a single platform for everything. And so we are here to restore faith, ignite passion, and assure the world that GameFi is not just alive, but thriving with potential, and I also want to encourage all of you to think about something. So, as we mentioned, there are all kinds of token standards on the market right now.

You can view them all on the board. But for developers, since ERC is definitely your weapon, you need to think about its functionality, whether it is exactly what you need or not. Check them out and see if they are effective enough for your specific case. Thank you very much.