One of the most prominent Cryptocurrency token standards – ERC- 20. ERC-20 has benefited businesses greatly because this token made the creation of altcoins very easy and enabled entrepreneurs to use them for raising funds for their ventures.
What is ERC -20 Token?
Ethereum request for comment tokens are tokens designed and developed on the basis of Ethereum platform. It’s a cryptocurrency which comes with a flexible mechanism that could be used to replicate tokens which could be distributed.
‘ERC 20’, ERC stands for Ethereum Request for Comments and 20 is the number that was allotted to this request.
ERC 20 token is a blockchain-based asset similar functionality to bitcoin, ether and bitcoin cash. The Ethereum-based tokens can also be traded, bought, and sold. ERC-20 tokens are unified and they play the role of cryptocurrency, assets, and digital shares.
The ERC standard token on the Ethereum blockchain is characterized by the following properties:
- It makes assets interchangeable;
- It is used on compatible platforms, projects, exchanges;
- Ensures operation with compatible decentralized applications (DApps);
- Simplifies transactions with the receipt and sending of coins;
- Interacts with other currencies and smart contracts;
- The ERC standard token based on blockchain is decentralized and open source.
Advantages of ERC-20 token
When people can simply trade, buy, and sell using Ether, so why ERC tokens?
Here are the advantages of ERC tokens:
Uniform and Quicker transactions
ERC Tokens consistently handle inward token transactions in Smart Contracts. Thus, it allows many developers to make better and more advanced protocols for a more uniform and quick transaction.
ERC Tokens can be exchanged via smart contracts on decentralized exchanges and are accepted instantly by many exchanges. Thus, any user can make transactions with the use of tokens seamlessly. Because they don’t have to learn anything new for the transfer of token, so the sale of ERC tokens will be quite easy.
Since the user and developers are already aware of how the ERC token will behave during the transaction, so don’t have to worry much. The standard token reduces the risk of contract breaking. So many developers and users demand the use of ERC tokens
ERC- 20 tokens became the initial way to explore more benefits of blockchain and cryptocurrencies. ERC Token facilitates smoother and faster transactions.
Written By Nitika Sethi–