The Ultimate List Of XRC Standards You Need To Know

The article covers the basic fundamentals of the XRC standards and offers an in-depth analysis of each type of XRC token standard.

Are you a blockchain developer, or an entrepreneur planning to issue XinFin-based tokens? You might be looking around to find what XRC standards mean and how they matter to you.

Here is the ultimate list of XRC standards!

What are XRC standards?

A ‘XinFin Request for Comments’ (XRC) is a document that smart contract programmers using the XinFin blockchain platform write. They describe rules in these documents that XinFin -based tokens must comply with.

If you’re not familiar with the fundamentals of XinFin, you should check out the ultimate XinFin guide first.

XRC STANDARDS — SIMPLY EXPLAINED INFOGRAPHIC

While there are several XinFin standards. These XRC XinFin standards are the most well-known and popular –

1. XRC- 20
2. XRC-165
3. XRC-721
4. XRC-223
5. XRC-621
6. XRC-777
7. XRC-827
8. XRC-884
9. XRC-865
10. XRC-1155

XRC 20 standard — The Most Popular Token Standard

XRC-20 is the most popular token standard and most ICOs that have issued their tokens on the XinFin platform have used it.

If you are a developer, you can code your smart contracts assured with the knowledge that they can easily interact with XRC-20 tokens.

It’s a fungible token standard. This means that two coins of any token built on it have the same value at a given point in time. Take the example of StorX, the decentralized Cloud Storage Their SRX token follows XRC 20, and 1 SRX token has exactly the same value as another SRX token at a certain point in time.

There is a standard protocol to follow, hence issuing new tokens using XRC 20 standard is easy. You should check out this beginners’ guide, to learn more about — what is XRC20?

XRC 165 — The Supporting Pillar of XRC 721

This is really a standard for a method, instead of tokens. However, it’s important for another token standard, XRC721, which can’t be implemented without it.

More on XRC721 later!

A smart contract needs to interact with crypto tokens. While all contracts can interact with XRC 20 tokens, it’s different from other XRC standards for tokens, like XRC 721. Smart contracts need to implement specific interfaces to interact with tokens following other standards.

Now, the XinFin development community needs to know which interfaces a smart contract implements, and there is a need to publish this information. This is because they need to know in which ways they can interact with that contract.

There wasn’t a standard method to detect the interfaces that a smart contract uses, and to publish it. XRC 165 standardizes a method for this, besides standardizing the identification of interfaces.

XRC 721 — The Standard for Non-Fungible Tokens

XRC stands for XinFin Request for Comment, and 721 is the proposal identifier number. XRCs are application-level standards in the XinFin ecosystem, they can be a smart contract standard for tokens such as XRC-20, the author of an XRC is responsible for building consensus with the XinFin community and once the proposal is reviewed and approved by the community it becomes a standard. XRC-721 was created to propose the functionality to track and transfer NFTs within smart contracts.

XRC-721 is an open standard that describes how to build Non-Fungible tokens on EVM compatible blockchains; it is a standard interface for Non-Fungible tokens; it has a set of rules which make it easy to work with NFTs. NFTs are not only of XRC-721 type

XRC 223 — Solves the ‘Token Loss’ Issues of the XRC20

If you send XRC 20 tokens to smart contracts that can’t handle tokens, this action burns the tokens, and you can’t recover them. XRC 223 proposes to prevent this.

Developers can either accept or decline tokens arriving at their smart contract addresses. It specifies functions that a contract can code so that if it can’t accept tokens, the transfer will fail.

This doesn’t burn any token!

While XRC 223 intends to save wealth that are lost accidentally, it’s not yet implemented. No tokens use it, and crypto exchanges may not be prepared for this standard.

Read more about this standard in the XRC 223 and how to implement it.

XRC 621 — Can Modify the Total Token Supply

An extension to XRC 20, this standard is to increase or decrease total token supply using two functions, i.e., ‘increaseSupply’, and ‘decreaseSupply’. The proposal recommends that only contract owner or trusted users should use them.

Cryptocurrencies are mathematical money, unlike fiat currencies where central banks can increase or decrease the supply. Total token supply is one among many factors determining token appreciation and impacts the economics of a token.

XRC 777 — Reduces Friction in Crypto Transactions

While invoking a smart contract, after the first transaction, the XRC 20 standard requires another transaction to verify whether the criteria are met. The smart contract is invoked only after this. This increases the number of transactions, effectively causing friction.

XRC 777 is a proposed standard that includes a function to identify receipt of tokens and start a smart contract immediately after the first transaction. While lowering the transaction overhead, it also allows a user to reject incoming tokens from a blacklisted address. Blacklisting of an address can be for various reasons such as hacking or illegal activities. The ability to decline payment from such an address improves the security position of a XinFin DApp.

XRC 777 upholds all strengths of XRC 20

XRC 827 — Enables Token Transfer for A 3rd Party to Spend It

It’s another extension of XRC 20, however, it intends to resolve the problem that XRC 223 tries to solve, in an enhanced manner. If this standard is implemented, a token holder can transfer tokens while also approving a 3rd party to spend them.

With this XRC standard, wallets and exchanges can reuse tokens, because both parties agree on specific criteria for a 3rd party to spend a dynamic amount.

XRC 884 — Tokenizes Stock

Recent legislation in the US state of Delaware now allows companies to use blockchain to maintain share registries. Among proposed XRC standards, XRC 884 intends to take advantage of it. It will designate each token as a share of a corporation incorporated in Delaware state.

To comply with regulations, XRC 884 also includes the following:

• Identity verification and mandatory whitelisting of token holders;
• The corporation can prepare a list of shareholders according to the regulatory requirements;
• Recording of information regulators mandate;
• Record transfer of shares according to regulatory requirements;
• The only whole value of tokens, i.e., no partial value;
• Shareholders that lost their private keys or tokens must get them back to a new address.
• Implementing XRC 884 requires an off-chain database for various ‘Know Your Customer’ (KYC) requirements.

XRC 865 — Helps the Beginners in the Crypto World

As a user new to crypto, when you try to transfer XinFin-based tokens, you suddenly find that you need to pay gas fees in XDC. It increases friction for you.

XRC 865 intends to make it easy for new crypto users. It proposes using the token to pay the fees as well. An intermediary third party is introduced who is willing to take the transfer fee in tokens and forward the transfer transaction with the necessary fee in XDC to the blockchain. This process is secured using cryptographic signatures.

XRC 1155 — The Most Advanced Non-Fungible Token

XRC 1155 solves all the major issues of XRC 20 and XRC 721 — the former best token standards for non-fungible tokens. For XRC 1155, users can create multiple tokens in a single contract. Also, you can use XRC-1155 for fungible and non-fungible use cases. All of these traits make XRC1155 better at storage management, efficient, and budget-friendly.

Final Thoughts

There are several other token standards — apart from the XRC standards. Also, each of these token standards serves different purposes and has its own advantages and disadvantages.

In the meantime, if you have any questions about XRC tokens types or you are a DeFi project and want to know more about how to migrate your project to XinFin Network you can always contact me via Telegram @Ruslan_wing

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