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What are ERC-20 Tokens?

Are you interested in Cryptocurrency? Let’s start with the basics. What are ERC-20 tokens? 

ERC-20 tokens are designed for and used solely on the Ethereum platform. 

What is Ethereum?

So, Ethereum is a decentralised network of computers which uses Ether (ETH). Ether is a popular digital currency. Ethereum functions as a virtual machine that can produce smart contracts. In the event that you would like to learn more, you can do so here

What are smart contracts?

Blockchains store smart contracts which help automate the execution of an agreement. This means participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss.

ERC-20 Tokens

Smart contracts use ERC-20 tokens on the Ethereum blockchain. The Ethereum community created a list of standards which are defined by these contracts. Undoubtedly, all tokens must adhere to these standards. Subsequently, developers are empowered by a process made easier to follow. Not only this, but new tokens can be put on an exchange or transferred to a wallet automatically. And as a result, tokens become more ‘swappable’.

Remember that the automated aspect of the Ethereum network is important in order to remain decentralised. 

reated these standards with three optional rules, and six mandatory.

Optional

  • Token Name
  • Symbol
  • Decimal (up to 18)

Mandatory

  • TotalSupply
  • BalanceOf
  • Transfer
  • TransferFrom
  • Approve
  • Allowance

Read more on Medium 

 

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