ERC-20 Key Points
- ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens.
- It stands for Ethereum Request for Comment 20.
- ERC-20 defines a common list of rules that all Ethereum tokens must adhere to.
- This includes how the tokens can be transferred, how transactions are approved, how users can access data about a token, and the total supply of tokens.
- ERC-20 has greatly simplified the process of creating new tokens on the Ethereum blockchain.
ERC-20 Definition
ERC-20 is a protocol standard that defines certain rules and standards for issuing tokens on Ethereum’s network. It provides a list of rules that need to be met for a token to be accepted and called an ‘ERC-20 Token’. The standard rules apply to all ERC-20 Tokens since these rules are required to interact with each other on the Ethereum network.
What is ERC-20?
ERC-20 is a standard used for creating and issuing smart contract-based tokens on the Ethereum blockchain. It sets a common set of rules that all tokens based on the Ethereum blockchain must follow, thereby allowing developers to accurately predict how new tokens will function within the larger Ethereum system. This makes it easier for developers to create new tokens, as they don’t need to start from scratch each time.
Who Uses ERC-20?
ERC-20 is used by token developers, as well as by other smart contract developers. Since the ERC-20 standard ensures that all tokens follow the same rules and standards, it makes it easier for developers to make their smart contracts interact with any token on the Ethereum platform. This includes wallets, exchanges, and other smart contracts.
When Was ERC-20 Created?
The ERC-20 token standard was created in 2015. It was proposed by Fabian Vogelsteller, one of the key contributors to the Ethereum project. Since then, it has been widely adopted by many projects in the Ethereum ecosystem.
Where is ERC-20 Used?
ERC-20 is used on the Ethereum platform, one of the largest and most widely used blockchain platforms in the world. It is used anywhere a standard token system is required, such as in digital wallets, decentralized exchanges, and other dApps (decentralized applications) built on the Ethereum platform.
Why is ERC-20 Important?
The ERC-20 standard is crucial as it established a common set of rules that Ethereum-based tokens must follow. This standardization has simplified the process of creating a new token, resulting in a boom in the number of tokens issued on the Ethereum blockchain. Additionally, ERC-20 has made it possible for wallet providers and exchanges to support multiple tokens without having to create a separate system for each one.
How Does ERC-20 Work?
ERC-20 works by providing a list of rules and standards that a token must follow to be recognized as an ERC-20 token. These rules include how the tokens can be transferred, how transactions are approved, how users can access data about a token, and the total supply of tokens. When a token follows these rules, it ensures that the token will function predictably in the larger Ethereum ecosystem.
