What is ERC-20?
ERC-20 is a technical standard for interchangeable tokens. You can exchange different tokens, one for another. All cryptocurrencies on the market are such tokens, except for products like NFT. Nevertheless, they also have their standard for them. In other words, ERC-20 Token is a methodology that precisely specifies what must be in the token code for it to get recognized by major independent players (exchanges) and for it to be bought or sold.
The ERC-20 Token is created and functions on the Ethereum blockchain. The token allows exchanging of similar tokens and their corresponding smart contracts. Contracts get executed only when the conditions specified in them get met) for each other. The most popular ERC-20 tokens include USD Coin (USDC), Binance USD (BUSD), Shiba Inu (SHIB), DAI Stablecoin (DAI), Bitfinex LEO (LEO), BNB (BNB), MAKER (MKR), and HEX (HEX).
What is an ERC-20 Token
The ERC-20 standard was created in 2015 but only fully implemented two years later. Its developer, Fabin Vogelstellar, wanted to make a way to standardize tokens in smart contracts. Smart contracts were initially created on Ethereum, so you could say that cryptocurrency got invented to create such contracts. The token, however, bears that name, which is why Fabin introduced it via the Ethereum Request for Comment (ERC) feature on the GitHub platform: his comment turned out to be the twentieth, and hence the development became known as ERC-20, and the comment was accepted in 2017.
According to ERC-20, all smart contract tokens on “Ether” must comply with the Fabin standard. Therefore, the meaning is that ERC-20 compliance will allow a smart contract to be interchangeable and exchangeable with another contract at the earliest opportunity. For a complete understanding of how the standard works, here is a detailed description of its components:
- TotalSupply. The total number of tokens you will issue is either in circulation or somehow locked.
- BalanceOf. The balance of your account, and you must own the tokens.
- Transfer. Automated token transfer for online networks.
- TransferFrom – means transferring tokens from a specified address.
- Approve. Permission to withdraw a specified number of tokens until a certain amount gets reached.
- Permission. Permission to return a specified number of tokens to the owner.
- Transfer. Successful token transfer.
- Statement. A log of successful token transfers. Payments made in Gaza, an Ethereum token for transaction fees, can also be entered there.
ERC-20 vs ERC-721
ERC-721 (the name comes from the 721-comment count on GitHub) was created in 2018 by a team of developers who wanted to introduce a standard you can use in the NFT realm. NFT is a non-interchangeable token, meaning one NFT cannot be exchanged for another NFT as quickly as you exchange dollars for Bitcoins. No converter allows one ERC-721 to get exchanged for another. The ERC-721 standard specifies a process for determining token ownership, creation, transfer, and destruction. A well-known example of an ERC-721 token is the CryptoKitties project, a game in which you breed, buy, and sell cats that exist in a virtual universe. ERC-20, on the other hand, is an interchangeable token standard and not an NFT (Non-Fungible-Token).
ERC-20 vs BEP-20
BEP-20 is another token creation standard. It is based on the Binance Smart Chain and is the standard for BSC tokens. ERC-20 has nothing to do with Binance projects. The BEP-20 blockchain is fast and efficient, which is not surprising as it continues ERC-20 and improves its technology. BEP-20 is responsible for running smart contracts and applications with crypto-product integration. It is compatible with Ethereum and offers a way to process transactions at a reduced price.
What is an ERC-20 address?
The ERC-20 wallet address is usually the same as the Ethereum address. The explanation is simple: all Ethereum addresses are compatible with storing tokens created using this standard. However, it is just an address on the Ethereum platform. Therefore, if you want to store tokens on familiar wallets (and not get confused) – you need to create an account on one of the platforms offering ERC-20-token storage services. Often, such sites allow you to store more than one standard token in your wallet. Their shortlist is given further in the text.
An ERC-20 Wallet
Which ERC-20 wallet to choose? Leading the way are the ones that the top crypto experts recommend today:
- Atomic Wallet is a free cryptocurrency wallet where you can store tokens with different creation standards (i.e., not just ERC-20coins). Inside, you can exchange one crypto for another, which makes Atomic Wallet one of the most compatible applications for investors. It even has its own token, AWC, created according to the ERC-20 standard.
- Ledger Nano X is a physical wallet that lets you connect to the Ledger Live Mobile app via Bluetooth. If you forget it, you can change your password – the wallet has an “initial recovery card.”
- Ledger Nano S. Another physical (hardware) wallet is considered the best market classic. Inexpensive and secure, it stores your tokens literally on an external drive disconnected from the internet. However, if you forget your password, you can kiss your tokens goodbye – the wallet won’t let you back in after several incorrect password attempts.
- Keepkey is a hardware wallet that stores various cryptocurrencies with different standards. Although it is pricey, it is considered to be premium and may be of interest to those who are especially concerned about the safety of their savings and are willing to spend to “guard” their crypto savings.
- MyEtherWallet. A wallet for storing Ethereum and other currencies based on ERC-20. It is free, works over the internet, is available to any investor, and is therefore well known in the market.
- MetaMask. It is popular among investors and functions as a browser extension. It supports several languages and currencies, and hardware wallets get adored by YouTube bloggers.
- Mist Wallet. Available in beta for various operating systems, developed by the team that worked on Ether in 2017. It positions itself as a secure app, requiring multiple passwords before logging in. You can conduct ERC-20-based coin transactions with lightning speed.
- Enjin Wallet. A wallet for storing ERC-20 tokens on a smartphone. Available in App Store and Google Play. Along with the app, a proprietary browser and a mini-exchange get offered (and swaps primarily get conducted).
- Trust Wallet. Supports all tokens created on Ether (which is not only ETH). It is compatible with decentralized exchanges and advocates user anonymity, although it is downloadable from app shops. Binance now owns it, and that explains the wallet’s well-established popularity.
How to create an ERC-20 Token
How are ERC-20 coins created? Actually, it’s obvious: you need to write code to create a coin. In it, the developer specifies a license identifier and a version of Solidity, the language on which smart contracts get based. Next, you need to give the token a name and set up “events” like token transfer and approval, owner balance display, owner address, and the total number of tokens you plan to issue. Not to forget all the components of the standard we listed above. You will need to add arguments to each component. You can find ready-made codes for creating ERC-20 tokens in the public domain.
Once the code is written, you must run it on the Ether test network. The developer checks whether the token holder has sufficient balance and whether the owner is approved to send tokens to the buyer. A transaction is then made, which can then get returned to the token holder. It won’t cost you any money if you test the operation of the code on a test network, not on the main network. As the first network to turn to, we suggest considering Ropsten.
ERC-20 Tokens List
So, how many ERC-20 tokens are there? There are many. Here’s a list of the primary ERC-20 tokens, although it’s impossible to list them all in one article. Nevertheless, the list of used ERC-20 Tokens most often can be found under this sentence. Coins can have widely varying values – this is the normal state of the ERC-20 Token market. Some are relatively in line with the value of assets like Bitcoin, and some are in line with the price of stablecoins. We do not quote the exact rate because it is pretty fast, like everything else in the cryptocurrency market.
- Maya Preferred.
- Mad Hatter Society.
- The Tokenised Bitcoin.
- pTokens BTC.
- Aureus Nummus Gold.
- Stably USD.
- Crypto Holding Frank Token.
- USD Coin.
- Jinbi Token.
- Asia Pacific Electronic Coin.
- Terran Coin.
- ACU Platform.