ERC-948 Definition
ERC-948 refers to a set of standards for Ethereum tokens that introduces a subscription model that allows for recurring Ethereum transactions. With ERC-948, users can set up auto payments on the Ethereum blockchain similar to how online subscriptions work, thereby making the Ethereum network more user-friendly and efficient.
ERC-948 Key Points
- ERC-948 is a proposed Ethereum standard for subscription payments.
- It allows for automated recurring transactions on the Ethereum blockchain.
- This standard aims to make Ethereum more user-friendly and efficient.
- Its use cases include monthly or yearly subscription services, similar to those found in conventional online platforms.
What is ERC-948?
ERC-948 is an Ethereum Request for Comments number 948, a proposed protocol improvement to the Ethereum network. It outlines a standard interface for subscription payment transactions in ERC-20 tokens, which are publicly used and mined on the Ethereum blockchain. This amendment to Ethereum’s architecture enables recurring payments to be set up and carried out more efficiently within the network.
Why is ERC-948 important?
This proposed standard holds significant importance within the Ethereum community as it offers a new dimension to how transactions can occur on the network. Regularly scheduled transactions, such as for subscription services, need to be performed manually in current blockchain systems, but with ERC-948, these can be automated, simplifying the payment process and enhancing the efficiency of the Ethereum network.
Where is ERC-948 used?
ERC-948 can be used anywhere within the Ethereum network, where there is a requirement for regular, recurring transactions. This could include subscription-based services such as digital magazines, streaming platforms, or even regular donations to an organization. It increases the potential use cases of Ethereum by functioning similar to regular bank standing orders or direct debits.
When was ERC-948 proposed?
The proposal for the implementation of the ERC-948 standard was made early in the year 2018 by Kevin Owocki and Andrew Redden. Since then, it has been subject to extensive discussions and revisions within the Ethereum developer community in an effort to refine and optimize its operation.
How does ERC-948 work?
ERC-948 allows users to create a subscription agreement, specifying the recipient’s address, the token to be used, frequency, and amount of payment. Once agreed upon, these transactions can be completed automatically at the given frequency. Both parties involved in the transactions have the right to cancel the agreement at any time, offering flexibility and control over the subscription agreement.
