What is ERC20? Learn about the features and the introduction of ERC20

What is ERC20? Surely in the process of you learning about the cryptocurrency market you will read somewhere the concept of ERC20 or ERC-20 token. So what is it? What are its features and birth like?. In today’s article, let’s learn about ERC-20 information!

What is ERC20

1 – What is ERC20?

ERC-20 stands for Ethereum Request for Comment 20. The number 20 is the symbol of the token. In short, ERC-20 is a technical standard ERC-20 Token used for smart contracts on the ethereum platform.

This ERC-20 token complies with a list of requirements to be able to trade, exchange for other tokens or transfer tokens to a certain e-wallet.

The Ethereum community sets out rules including 3 optional and 6 mandatory as follows:

Elective:

The name of the token.

Codename.

Decimal (the smallest division of the token, up to 18 zeros).

Obligatory:

Total Supply.

Account balance (BalanceOf).

Transfer money (Transfer).

Transfer money from one account to another (TransferFrom).

Transaction reconciliation (Approve).

Allow (Allowance).

2 – What is the feature of ERC20?

ERC-20 is a standard that simplifies things. In the past, project developers who issued tokens often had to use a lot of code with similar names that caused confusion. As the advent of ERC-20 helped to solve this problem, it also made it easier to create new tokens on ERC-20. This is also the reason why the ethereum blockchain platform has become a popular platform that projects issuing tokens often use.

3 – Disadvantages of ERC-20

There have been cases where tokens were accidentally destroyed when tokens were used to pay for smart contracts.

The ERC-223 standard was born with the hope of overcoming the disadvantages of ERC-20, but this standard is still not compatible with ERC-20.

In April 2018, some exchanges stopped withdrawing/depositing tokens on the ethereum platform because of a batchOverflow error.

4 – ERC20 . storage wallets

Some types of wallets support ERC-20 standard storage such as: MyEtherWallet, Metamask, lm token, Trust wallet, etc.

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