What is ERC20 as frameworks?
Pratik Jain
By: Pratik Jain

What is ERC20 as frameworks?

We are increasingly hearing about Ethereum these days. Ethereum is the popular cryptocurrency and blockchain system. It is based on the use of tokens which can be bought, sold, or traded. There are several other tokens which may be used in conjunction with Ethereum, and they differ from ether which is the currency native to the Ethereum blockchain. Tokens, in this case, represent digital assets that can have a variety of values attached. They can represent assets as diverse as vouchers, IOUs, or even objects in the real world. In this way, tokens are essentially smart contracts that make use of the Ethereum blockchain. One of the most significant token standards of all for Ethereum is called ERC-20, which was developed about a year and a half ago

In short, the ERC-20 defines a common list of rules for all Ethereum tokens to follow, meaning that this particular token empowers developers of all types to accurately predict how new tokens will function within the larger Ethereum system. The impact that ERC-20 therefore has on developers is massive, as projects do not need to be redone each time a new token is released. Rather, they are designed to be compatible with other new tokens, provided those tokens adhere to the rules. Developers of new tokens have mostly observed the ERC-20 rules, meaning that most of the tokens released through Ethereum initial coin offerings are ERC-20 compliant.

Leave us a comment