Ethereum Improvement Proposal
ERC-5528
ERC-5528 is a smart contract that acts as a refundable fungible token. It is a smart contract protocol that reverses tokens back to the sender’s wallet if all the requirements of the transaction are not met.
The Basis for ERC-5528
ERC-5528 falls under ERC-20 standard. ERC-20 was proposed by Fabian Vogelsteller in November 2015. The standard outlines a consistent set of requirements that a token must meet in order to operate normally inside the Ethereum ecosystem. With the ERC-20 technical standard, tokens on the Ethereum blockchain can be issued and implemented.
Owing to the ERC-20 standard, programmers can more accurately predict how various tokens will function within their respective applications. It also specifies the rules for transferring ERC-20 tokens within the Ethereum blockchain and for keeping track of their issuance and distribution across addresses.
There are a number of tokens that adhere to the ERC20 standard that have been deployed on the Ethereum blockchain, each with its own specific implementation.
The ERC-20 standard defines six operations that ensure the continued operation of key features and capabilities of digital tokens built on the Ethereum platform. Examples of such features are the token’s symbol, name, and supply, as well as the method through which tokens are exchanged between addresses within a smart contract.
ERC-5528 Standard
The ERC-5528 standard offers a blockchain-based escrow service and is a refinement of the earlier ERC-20 standard built on the side core principles that define token behavior in the Ethereum network.
Since cryptocurrencies ensure complete anonymity, there is no way to retrieve cryptocurrency that has already been transferred if a transaction fails. Additionally, the decentralized nature of the cryptocurrency market makes it challenging to construct a centralized escrow service overseen by an impartial third party.
To address this, the ERC-5528 standard for refundable fungible tokens was developed as a smart contract so that tokens can be returned to the sender’s wallet if transaction conditions are not satisfied.
