Ethereum is a blockchain designed to have functionality beyond creating and recording transfers of its own cryptocurrencies. Among these features, the ability to create other tokens that will run on its blockchain stands out.
This curious functionality of Ethereum is possible thanks to the ERC-20 tokens . In this article, we will examine some elements that will allow us to know everything related to one of the most important technologies implemented by Ethereum.
The origin of the ERC-20 token
With this improvement, the Ethereum developers wanted to implement a standard system for tokens within smart contracts. Ethereum token development as well as allowing tokens to be approved so they can be spent by another third party on the blockchain.The idea was introduced by the developer, Fabian Vogelsteller in the official Ethereum GitHub repository in 2015.
What are ERC-20 tokens?
ERC-20 tokens are essentially a smart contract . These smarts contracts use a standard interface that runs on the Ethereum network. Thanks to this, they obtain great flexibility and ability to be used in different scenarios.
The purpose of these rules is to allow the coexistence of other tokens on Ethereum, without diminishing the evolution capabilities of the blockchain technology or the platforms that use them. In this way, the developers of the DApps have a wide freedom when it comes to programming their applications and effectively tokenizing their projects. Thanks to this, the ERC-20 tokens are capable of achieving the objective for which they were created; allow any Ethereum token to be reused by other applications: from wallets to any decentralized application.
How does an ERC-20 token work?
Without going too far into the technical aspect, the operation of an ERC-20 token is simple. The developers of Ethereum worked hard to make this standard easy to use in software development. This has a clear objective: to facilitate its adoption and use by other developers. Ethereum token development services To achieve this, the token interface design has a series of well-identified and well-defined elements. Each of these elements has a specific utility and function, and can be used by any DApp built to use this standard. To explain these elements, let’s take Golem ‘s ERC-20 token as an example :
Name (Name). With this element we can name the token created and managed by the DApp. It serves to identify and differentiate the token created from others that already exist. For example, the name Golem, is the token name of the Golem distributed computing DApp.
Symbol (Symbol). This element mentions the symbol or abbreviation of the token. Following the example above, this field would define the symbol of the Golem token, the GNT. Decimals (Decimals). This field is used to define the number of decimal places that the token will use. Total supply (TotalSupply). This indicates the total supply of tokens that will exist. This is a value that is decided by the developers of the new token, and may be associated with different economic rules depending on the consideration of its developers. Balance (Balance Of). With this element, you can find out the balance in a certain network account. In this case, it would be the number of GNT tokens a user has in a given wallet.
Transfer. This is one of the elements that allow us to control the assets that we have in our accounts. The ERC-20 token has two elements that allow this type of action.Approved. Thanks to this function we can make withdrawals from the accounts. This is a special element of control, as it allows us to know the amount of tokens that we can withdraw from a certain account. Together with the Approved function, it allows accounting control of the tokens within an account and enables automated management options for them.
ERC-20 tokens, in essence, are a smart contract It is thanks to each of these functions that the ERC-20 tokens have the great versatility that characterizes them. Well, it allows a quick implementation of the same for various uses without having to alter its structure. In addition, thanks to the fact that these are executed on the Ethereum blockchain, their traceability and auditability are guaranteed, since their actions can be traced on the Ethereum blockchain.
Among the advantages of the ERC-20 token is the saving of time and resources . ERC-20 token development tokens take advantage of the existing Ethereum infrastructure rather than creating an entirely new blockchain for them. In addition, they have greater security, since the creation of new tokens increases the demand for Ether, which makes the entire network even more secure, that is, less susceptible to a potential hacker attack.
If all tokens created on the Ethereum network use the same standard, these tokens will be easily interchangeable and can easily work with other applications in the same ecosystem. We cannot fail to mention among its advantages the great liquidity they provide, since the ERC-20 tokens are used as the basis of work for most projects on the blockchain.
About the Creator
Boopathi
Digital Marketer , SEO Analyst
NAC Breda vs FC Emmen | NAC Breda vs Willem II
NAC Breda vs FC Emmen | NAC Breda vs Willem II The Dutch Eerste Divisie, the second tier of Dutch professional football, is a league where competition is fierce and every point matters. For NAC Breda and FC Emmen, the 2023-24 season presented a thrilling encounter, marked by contrasting fortunes and a nail-biting final outcome.
By Anthony Moriyam 7 days ago in 01
Revealing The Entrepreneurial Odyssey Of Alexander Zapata:
"Innovation distinguishes between a leader and a follower." - Steve Jobs. Introduction: Alexander Zapata, born in Bridgeport, Connecticut, USA, is a multi-talented entrepreneur and master of several fields. Zapata, who was born on March 17, 1989, represents a Dominican-American ancestry, incorporating cultural elements throughout his work. He navigates the complex web of opportunity with a strong attitude and a distinct combination of ambition and determination. Zapata's portfolio reads like a symphony of achievements, converting basic concepts into successful businesses. In politics, Zapata utilizes his power to support issues dear to his heart. In sports, he handles the complications of athlete representation with skill and advocacy. As a professor, Zapata shares his wisdom with the next generation of leaders, cultivating the seeds of greatness that will change the world of tomorrow.
By Christian Botella3 days ago in 01
Red Shelves
Death is a black hole. Think about it. A black hole is the corpse of a star, something once warm and bright, now come to the end of its life cycle. But some will argue that the cycle of life does not end with death. That death is merely another path we must walk once our bodies expire and our souls ascend. In that moment, when the fuel in the star’s chemical tank hits empty and the shiny matte coat explodes into supernova, the mass left behind – the corpse – becomes a black hole. We understand that, around such a vast cadaver, dimensions work a little differently in death to the way we’re used to in life. For example, light cannot escape the pull of a black hole when it hits the point of no return. That’s where it gets its colour. Space itself is contorted by a black hole. That’s where it gets its funny shape. Even time. Time slows right down the closer you get to it. The closer you get to a black hole. The closer you get to death.
By Matthew Curtis5 days ago in Humans
Comments
There are no comments for this story
Be the first to respond and start the conversation.