The ERC-20 standard offers many things for tokens who are using Ethereum as their blockchain network on which to operate, but there is now a shiny new and improved standard – the ERC777 – which is showing off new features and capabilities.

ERC-20, the first token standard, might be taking a backseat soon to the new improved ERC777 standard for tokens launched on Ethereum‘s blockchain.

The standard ERC stands for the Ethereum Request for Comments and its purpose is to outline a particular set of regulations for tokens which are created to be implemented on the Ethereum’s network. Many tokens (such as EOS and TRON which have just launched their own individual mainnets) have and are using Ethereum’s blockchain in order to gain credibility as a project during initial coin offerings (ICOs) as ERC-20 tokens.

It is a helpful initial maneuver, but the ERC-20 standard does pose several problems, such as the fact that some contracts might not support ERC-20 tokens and, if used, essentially become locked forever. With the new ERC777 standard, it alleviates some of the problems the previous protocol gave while remaining entirely compatible with the old standard.

Notably, there are three new benefits which are offered by the new standard but not by the old one.

These are: