What is ERC-20

What is ERC-20 ? The popular cryptocurrency and blockchain system known as Ethereum is based on the use of tokens, which can be bought, sold, or traded. In this case, “tokens” represent a diverse range of digital assets, such as vouchers, IOUs, or even real-world, tangible objects. In this way, tokens are essentially smart contracts that make use of the Ethereum blockchain. One of the most significant tokens is known as ERC-20, which has emerged as the technical standard used for all smart contracts on the Ethereum blockchain for token implementation. By April 16, 2019, more than 181,000 ERC-20-compatible tokens exist on Ethereum main network.ERC20 is a protocol standard that defines certain rules and standards for issuing tokens on the Ethereum network.

In ‘ERC20’, ERC stands for Ethereum’s Request for Comments, and 20 stands for a unique ID number to distinguish this standard from others.

Similar to the fact that we have an HTTP protocol for the internet, we have a standard protocol for tokens to be issued on Ethereum i.e. ERC20.

To put it in layman terms, if you include certain functions in the token’s smart contract, you are ERC20 compliant and if you don’t include the mandatory functions, you are not ERC20. So, those tokens on Ethereum network checks all the necessary boxes i.e. includes the necessary functions in their token implementation which are deemed as ERC20 tokens.
These are crypto-assets or crypto-tokens which can be traded like Bitcoin or Ethereum or Litecoin but unlike these cryptocurrencies, they don’t have their dedicated blockchain. Instead, they thrive on Ethereum Blockchain and bring several benefits for the users.

What is ERC-20

published by : Anti dolos