07.09.2022
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All about the ERC-20 token standard

erc20: all about token protocol

ERC-20 is the unified Ethereum blockchain standard for the development of smart contracts. It is a list of requirements that must be followed when creating a contract designed to issue new cryptocurrencies on the network.

By implementing this standard, the Ethereum network enabled crypto projects to issue tokens without having to launch a separate blockchain. This event has had a significant impact on the development of cryptocurrencies. Previously, the Bitcoin systеm created a model according to which each new digital currency was issued on its own blockchain. And the new Ethereum algorithm allowed developers to issue tokens and give them the functionality they wanted on a single platform.

Explanation of the abbreviation ERC-20

The ERC name reads as Ethereum Request for Comments. This is the name of a centralised protocol into which community members make suggestions for optimising the blockchain. The number “20” indicates the number of the comment in order.

Who created this standard and when?

Fabian Vogelsteller, a programmer, and Vitalik Buterin, the founder of Ethereum, created the proposal to introduce this single standard. It was first published in the autumn of 2015. The implementation into the network took place two years later, in 2017.

ERC-20 is the key to resolving the complexities of token interoperability

Due to the fact that each token used to have an individual smart contract, there were compatibility issues. Programmers were forced to develop new codes for each individual exchange and wallet type. With the introduction of the ERC-20 protocol, these difficulties have been eliminated.

Tokens that operate on the ERC-20 protocol

It is used globally for a large number of cryptocurrencies. In particular:

  • Tether (USDT)
  • Aave (AAVE)
  • The Sandbox (SAND)
  • ApeCoin (APE)
  • Chainlink (LINK)
  • Axie Infinity (AXS)
  • 1inch (1INCH)
  • Uniswap (UNI)

On AnyExchange website you can exchange ERC-20 tokens to other monetary assets. At the moment, you can with us buy or sell USDT ERC20, the most demanded Tether token, at the best exchange rate and without registration.

Basic characteristics of the ERC-20 protocol

It provides nine uncomplicated metrics for smart contracts in Ethereum (three of which are optional, but recommended). Their set allows Ethereum to maintain a unified database of all codes.

Mandatory parameters:

  1. TotalSupply. The metric controls the total volume of tokens being issued. It blocks the ability to generate new coins once their number reaches a certain limit.
  2. balance0f. The parameter determines how many tokens are pegged to a particular address.
  3. transfer. Its function is to transfer assets to users.
  4. transferFrom. A parameter that is important for token transactions. 
  5. approove. It provides verification of the smart contract. It confirms that the issuer has the right to make the distribution.
  6. allowance. It verifies the balance and is a confirmation that there are enough tokens available to execute a transaction.

Optional parameters:

  1. Name of the digital asset.
  2. Ticker of the cryptocurrency.
  3. Fixing the number of digits in numbers after the decimal point.

Which wallets work with ERC-20 functionality?

All wallets supporting Ethereum are compatible with ERC-20. Trust Wallet, Metamask, MyEtherWallet and Exodus are the most popular wallets for ERC-20 cryptocurrencies. This article will help you choose the wallet that suits you best → Top best crypto wallets.

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