What are ERC-404 tokens?

ERC-404 tokens are a hybrid token standard on the Ethereum blockchain. They blend the characteristics of fungible and non-fungible tokens (NFTs). However, despite their name suggesting an Ethereum Improvement Proposal (EIP) lineage, ERC-404s were developed outside the official EIP process.

Who created the ERC-404 token?

The ERC-404 token standard was created by the pseudonymous developers known as “ctrl” and “Acme.” This standard, which did not follow the formal Ethereum Improvement Proposal (EIP) process, combines the fungibility of ERC-20 tokens with the uniqueness of ERC-721 NFTs. The original concept for the hybrid token was developed from the failed EMERALD project.

What problems do hybrid tokens solve?

Hybrid tokens, such as ERC-404s, address several key issues. Firstly, they tackle the liquidity challenges faced by NFT collections that rely on auction-based trading. Additionally, they offer a more flexible and accessible market structure. This blend of fungibility and uniqueness in ERC-404 tokens ties the features of ERC-20 and ERC-721 tokens.

What is an ERC token?

Within the Ethereum ecosystem, an ERC, or Ethereum Request for Comment, is a sort of standards document that describes guidelines for publishing modifications on the Ethereum network. This includes application-level conventions and standards. ERCs are not exclusively related to tokens. Contract standards like name registries, URI schemes, library/package formats, and wallet formats might all fall under this category.

What is the most popular ERC?

The most popular ERC standard is arguably the ERC-20 token standard. The ERC-20 is a smart contract that allows for the simple creation, deployment, and maintenance of logic when creating new tokens. This allows for easy integration of tokens into decentralized exchanges, transfers, and wallet implementation for developers.

What are the ERC tokens standards?

While ERC standards are not exclusive to token creation, there are a few ERC token standards that have become very popular. The ERC-20, ERC-721, and ERC-1155 are some of the most widely used token standards. The ERC-20 creates fungible tokens, while the ERC-721 and ERC-1155 create non-fungible tokens.

What is ERC20 token type?

The ERC-20 token is a fungible token. This means that these tokens are interchangeable with one another. In the same way that you can pay a tab using a dollar, $5, or a $20 bill, you can use each ERC-20 token unit interchangeably. With non-fungible tokens, the individual token units are unique and do not hold equal properties; therefore, they are not interchangeable.