ERC stands for “Ethereum Request for comment”, and the ERC-20 token has been used since 2015.
What Is ERC-20?
ERC-20 is a token used as a technical standard by the Ethereum platform to create other tokens. In other words, it is a layout most developers use to develop fungible tokens (identical and divisible).
Many popular tokens are issued using the ERC-20 standard, such as Chainlink, Tether, Shiba, and Wrapped Bitcoin. ERC tokens have a fixed supply and can only be accumulated in a dedicated wallet for Ethereum. In the Ethereum system, tokens portray various digital assets, including vouchers, IOUs, and tangible objects.
To a limited extent, ERC-20 is similar to Bitcoin and some altcoins. This is because all of them are based on blockchain and can be exchanged between owners. The main point that differentiates an ERC-20 token from others is that it is issued on the Ethereum network. If you have still not found what is an ERC-20 token then keep reading.
ERC-20 is a comprehensive set of rules that governs hundreds of tokens on Ethereum. Mainly these rules explain how the tokens can be transferred, how to get the transactions approved, and what the circulating and total supply of tokens is. All ETH tokens are bound to adhere to ERC-20 standards. The Ethereum platform has created other standards such as ERC-721, ERC-1400, and ERC-777.
Properties of ERC-20 Tokens
ERC-20 tokens, also known as utility tokens, have the following common features.
This property means that all ERC-20-based tokens are the same in their coding. To identify the transaction histories are used.
The developers of ERC-20 tokens are not allowed to reduce or increase the supply of tokens. This feature reduces the volatility of these tokens.
These tokens can be sent quickly from senders to receivers; hence selling and purchasing is convenient.
ERC-20 Coding Functions
There are various coding functions incorporated in ERC-20 by the Ethereum platform. These coding functions and the features mentioned above make ERC-20 standards beneficial for other tokens. These coding functions are as follows.
This function permits smart cards to keep the balance of an address. The addresses are parameters, meaning that all addresses balance is public (visible to all).
This function allows calculating and returning tokens to control the circulation and maintain the fixed supply.
This feature allows the token holders to send any amount of tokens to other addresses like other cryptocurrencies.
This automated feature enables a smart contract to initiate a transfer.
This feature increases the reliability of the tokens as approval is required before withdrawal from an owner’s address.
What Is the ERC20 Address?
An ERC20 address is actually a wallet address on the Ethereum blockchain. All Ethereum addresses are compatible to store on the Erc-20 network and every Ethereum wallet is connected to the Ethereum blockchain. An ERC-20 address can easily be generated in wallets and exchanges and looks like this
Popular Erc-20 Wallets
Here is a list of the top 6 Erc-20 wallets that are reliable and provide some marvelous features.
Atomic Wallet is a popular ERC-20 wallet with a unique atomic swap feature. This feature enables users to swap their cryptocurrencies. It is also pertinent to mention here that it is a hardware wallet. It has its own token as well known as the Atomic Wallet Token (AWC).
MyEtherWallet is different from the above-mentioned wallets because it is a web-based wallet. It means that it enables users to directly access the Ethereum blockchain. It is a free ERC-20 wallet and provides high-end security features.
It is also a web-based ERC-20 wallet that allows storage of all those tokens that are minted on the Ethereum blockchain. MetaMask supports multiple languages which means that it is used all over the world.
Enjin is a mobile app wallet for ERC-20. It provides features such as a DApp browser and QR codes for airdrops. It is available for Android as well as Apple devices. It is a prominent wallet when we search for mobile app wallets.
Trust Wallet is also a mobile app wallet used to store Ethereum tokens. It has been used by many exchanges as their official exchange wallet. In addition, it is also supported by Kyber.
Ethereum blockchain is a host for other tokens that can be purchased, sold, and traded conveniently. ERC-20 is a technical standard for smart contracts to implement on the Ethereum blockchain. The implementation of the ERC-20 standard and the ease in which projects can create new tokens is a reason why it is a gold standard in crypto.
Popular projects, whose tokens comply with the ERC-20 standard, include Basic Attention Token (BAT), Chainlink, Uniswap, and Maker.