May 13, 2021

What is ERC-20 token?

What is ERC-20 token?

To date, over 200,000 ERC-20 tokens coexist on the Ethereum blockchain.

ERC-20 tokens are digital assets, which are issued on the Ethereum network.

What is ERC-20?

ERC-20 is the technical standard for cryptocurrency. It is used for all smart contracts and provides a list of rules that all Ethereum-based tokens must follow.

Several of the ERC20 coins are among the top 20 cryptocurrencies in terms of capitalization.

ERC-20 standard

The ERC-20 standard is vital: it defines a general list of rules that all cryptocurrencies on the Ethereum blockchain must adhere to.

ERC-20 standard simplifies the task setin front of the developers, since it can take less than a couple of days to create a cryptocurrency. Compliance with a single standard also ensures compatibility between the various tokens issued on Ethereum.

ERC-20 benefits

  • Open source projects allow combining them into unified systems;
  • They are easily sent from one address to another, and work with any application of the ecosystem;
  • ERC-20 coins serve as the basis for a large number of successful projects, the demand for them is growing, therefore, liquidity is also growing.

How to buy and store ERC-20 coins

Many well-known digital currencies use the ERC-20 standard, including Maker (MKR), Basic Attention Token (BAT), Augur (REP), and OmiseGO (OMG). Most of the ERC-20s are traded on crypto exchanges.

ERC20 uses gas to pay transaction fees. To store them, you need a wallet that can hold Ethereum tokens, such as MetaMask, or a hardware wallet.

Subscribe to ForkNews on Telegram to stay up to date with the latest news from the world of cryptocurrencies