🚨 Time is Running Out: Reserve Your Spot in the Lucky Draw & Claim Rewards! START NOW
Learn to gain real rewards

Learn to gain real rewards

Collect Bits, boost your Degree and gain actual rewards!

Video Courses
Video Courses
Scale your career with online video courses. Dive into your learning adventure!
Crypto Terms:  Letter E
Jun 19, 2023 |
updated Apr 02, 2024

What is ERC-827?

ERC-827 Meaning:
ERC-827 - an Ethereum-based token standard that implements calls in transfers and approvals.
2 minutes

Let's find out ERC-827 meaning, definition in crypto, what is ERC-827, and all other detailed facts.

ERC-827 is an Ethereum-based token standard that provides updates to the older ERC-20 token. The ERC-20 standard only allows values to be exchanged. ERC-827 improves on these limitations by allowing Ethereum users to transmit both data and currency. Tokens can also be authorized to be spent on other third-party companies on the Ethereum blockchain.

The ERC-827 token standard serves as an extension of ERC-20 and enables users to complete transactions by utilizing the success of a recipient contract mechanism. Alongside the standard functionalities of ERC-20, ERC-827 also offers transferAndCall, transferFromAndCall, and approveAndCall functions.

The additional _data parameter functions similarly as ERC-677 while also using a fallback method. If the function provided in the _data parameter is returned as true, the transaction is initiated.

The ERC-827 is used for the development of third-party apps on the Ethereum blockchain. One of its direct competitors for general adoption is another Ethereum-based standard, ERC-223.

Both ERC-827 and ERC-223 deal with the same functionality issue of ERC-20 and allow users to transfer tokens and data to smart contracts. This helps prevent the loss of tokens that are accidentally transferred to smart contracts instead of cryptocurrency wallets.

ERC-827 was utilized by Zeppelin in its open-source contracts, giving it more exposure than ERC-223.

The ERC-827 standard can be explained via the concept of a digital shopping cart. The customer places any desired items in the shopping cart. However, they cannot pay for the items without a sufficient amount of tokens in their wallet. 

If someone transfers the customer tokens, the transaction data triggers a function within the smart contracts that checks whether the customer has enough balance in their wallet to pay for the items in the cart.

ERC-827 improves some of the flaws of ERC-20 while maintaining full compatibility with the older standard. It is likely that ERC-827 will be more widely adopted due to its advantages over ERC-20 and ERC-223. The adoption of ERC-827 would allow users to retain their ERC-20 tokens while also utilizing the improved functionalities of the new standard.