ERC stands for Ethereum Request for Comment, providing application-level standards for the Ethereum blockchain. ERC-827 builds upon the ERC-20 token standard, allowing for the execution of calls inside transfers and approvals. For example, with ERC-827, users can pass data and tokens to smart contracts in order to execute them.
ERC-20 is one of the most common token standards used today. While simple and efficient, other token standards have been created to improve on some of ERC-20’s shortcomings. For example, ERC-20 allows values to be exchanged, and ERC-827 builds upon this idea by allowing users to exchange value, currency, and data.
ERC-827 achieves this function because it enables transactions to be completed by using a recipient contract mechanism. Compared to the standard ERC-20, ERC-827 has several operations in its contract mechanisms: transferAndCall, transferFromAndCall, and approveAndCall. It also allows tokens to be approved for spending by third-party on-chain companies.
