What is ERC-20? In the beginning of learning about cryptocurrencies, there are a lot of concepts that may confuse you. Here in shetcoiner website, we’re trying to introduce ERC-20 Token’s protocol standard or ERC-20 address to you. If you’re interested, follow the rest of this article.
What is ERC-20?
In the Beginning of appearance of cryptocurrencies and after a while that Bitcoin was introduced by Satoshi Nakamoto, individuals that was working on a token project based on blockchain, had to make their own new blockchain to attract investors to the cryptocurrencies.
A difficult way that became easy with the help of Ethereum. Ethereum made that way a lot easy after developing ERC20 Standard. Ethereum actually caused a that anyone can now make tokens for themselves without making a blockchain with making the ERC-20 Standard. Then Ethereum developed the ERC-20 to attract the first investors of cryptocurrencies.
What is ERC-20 Token?
ERC is the short version of the “Ethereum Request of Comment” phrase. In a simple and easy way of saying, ERC-20 is a collection of terms and conditions that helps Token makers and Developers to make and smart contract with their tokens on Ethereum network platform.
ERC-20 tokens are the most common tokens built on the Ethereum blockchain. These tokens are designed to be network utility tokens and are used for payment functions. These tokens can be used to pay for services and goods. ERC-20 tokens, like any other token, have three distinct interchangeability, transfer, and supply capabilities.
The ERC20 token enters when a smart contract intends to create a token on the Ethereum platform. In fact, ERC20 is a common language used by all Ethereum smart contracts. This language allows tokens to be exchanged with each other.
In the following of What is ERC-20? article, we will examine each of the ERC20 rules, the optional fields of the ERC20 standard are:
- Token name: The name you assign to your platform token.
- Symbol: The abbreviation for the token.
- Decimal: In fact, in this field, you specify the divisibility of your token. For example, if we set the value of this field to 1, the minimum value of tokens on our platform will be 0.1.
Required fields of the ERC20 standard are:
- Total Supply: The total number of tokens we consider for our platform.
- Balance of: This variable indicates the number of tokens associated with each user address.
- Transfer: The process of assigning primary tokens to users.
- Transfer From: The transferFrom function allows a player to send tokens to another player.
- Approve: This function measures transactions based on the total number of tokens.
- Allowance: This function checks each player’s account balance and cancels the transaction if the number of tokens is not enough.
The top ERC20 tokens
- USD coin token
- Phantom token
- SHIBA Inu Token
- HEX token
What is ERC-20 address?
One of the common questions that may engage or amuse your mind is that should we find and use special ERC-20 address or wallet to transfer Stable cryptocurrencies like Tether? The answer to that question is Yes. For depositing any Tether token to your wallet with ERC-20 Standard, you need a wallet that supports ERC-20 Tether token’s standard and send it to your Tether wallet.
If you want to know that your wallet address supports ERC-20 or TRC-20, you need to note to the beginning of your wallet’s address. If it supports ERC-20 the first to characters would be 0X and if it supports TRC-20 the first characters would be TX.
In this article on shetcoiner website we talked about this issue that What is ERC-20?, so if you want to know, this article about or ERC-20 address can be useful for you. Share your opinion and experiences with us in comment section below!