ERC-777, like ERC-20, is a tokenization standard for fungible tokens that is intended to enable more complex interactions for token trading. It aids in the removal of ambiguity surrounding decimals, minting, and burning—and it employs a distinctively powerful feature known as a hook. A hook is a function in a computer-based informatics contract that is activated when tokens are sent to it and simplifies how accounts and contracts interact while receiving tokens. Furthermore, as a result of this, ERC-777 tokens are much less likely to become “stuck” in a contract (which has historically been an issue with ERC-20 tokens).
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