If you are a regular subscriber of the blockchain news or somehow a part of the industry, you may be familiar with terms like cryptocurrency, ICO and tokens. Another term that you must have heard a lot is ERC20. So what ERC20 actually is and why so many ICOs seem to be following this for their tokens. Let’s find out.
What is ERC20?
ERC20 or ERC 20 is a technical standard which contains some rules and definitions that any product following that standard must obey. ERC20 is primarily used by smart contracts and tokens that are built on the Ethereum blockchain. It stands for Ethereum Request for Comment – 20.
So, the ERC20 standard contains a set of rules based on which new tokens are created by developers of smart contracts. All these tokens have one thing in common – they all follow the same operating rules. A new token needs to fulfill certain terms and conditions in order to be considered as an ERC20 currency.
Why ERC-20: Benefits and Features
Ok, so ERC20 is a token standard by Ethereum, but what makes it so great that almost every new token out there is based on this only standard. Let’s see.
Ethereum’s ERC20 standard is known to be one of the best places to host your new token, and there is a reason why. Besides offering a host of benefits, ERC20 is a highly secure and feature-rich platform.
One of the top advantages of creating your token on this standard is that the token will be compatible will all the other tokens that follow the ERC20 standard as well exchanges that support this standard. That means your token will be automatically tradable on a number of exchanges that support ERC20. Besides that, it can be traded for any other ERC20 token such as ETH.
Besides that, an ERC20 token can be stored in any wallet that supports this standard. That means any wallet that allows ETH can also be used for storing other ERC20 tokens.
Another great advantage of using the ERC20 standard is that it allows developers to modify and customize their tokens in almost any way they want. In technical terms, ERC20 is an open-source system using which you can create custom decentralized applications like digital identity apps, retail marketplace, voting systems, and more.
Last but not least, By developing your token on a popular standard like ERC20, which is already being employed by hundreds of other tokens, you minimize the risk and increase the token liquidity.
Airtoto token (ATT) is an ERC20 token which empowers the Airtoto platform – a blockchain based digital lottery system. Buy Airtoto tokens in the pre-sale and enjoy 15% bonus. Read The whitepaper here.
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