ERC 20 (Ethereum Requests for Comments) are technical documents that outline the standards for programming on Ethereum. It creates a layout to allow applications and contracts to easily interact with each other. Developers can build on an already existing foundation, without having to start from scratch. In these buildable systems
ERC20 Tokens designed to make payments are the most frequently used on the Ethereum network. When new ERC-20 tokens are created, they are interoperable with software and services that support the ERC-20 standard. ERC-20 tokens like Ethereum are not held by accounts, but exist only within a contract, which is similar to a self-contained database. It establishes the rules for tokens (e.g. name, symbol, divisibility) and maintains a list that links users’ balances to their Ethereum addresses. ERC 20 Tokens can query total supply, check balances, transfer funds, and in fact, the attractiveness of ERC-20 tokens is largely based on their flexibility. The system on which it is based does not limit the making of improvements. It can be improved with a new proposal, just as Vitalik Buterin did.
While Ether can be mined, tokens are not suitable for mining. The creation of new tokens is called mint. When a contract is created, developers distribute the supply according to their plans and roadmaps.
What is an ERC20 Address? How to Create an ERC20 Wallet?
ERC-20; It is the general name of the standards applied to make the existing tokens on the Ethereum platform functional. ERC; It stands for “Ethereum Request For Comments”, with 20 being the ID number that customizes it. Developed by Vitalik Buterin and Fabian Vogelsteller in 2015, ERC-20 provides a general framework for tokens developed and distributed on the Ethereum network. Since each developer acts according to this set of rules, the interaction between the decentralized application and the smart contract occurs in a healthy way. Those who develop tokens on the Ethereum blockchain network save time and reduce their workload by applying established standards instead of building something from scratch. Instead of writing everything from scratch, the developer can build and use their own project on top of the basic code structures that have long been used in the ecosystem. Thanks to the ERC-20 token standard, applications can be developed that run directly on many software and hardware wallets already in use. Likewise, it will be easier to establish integration with crypto money exchanges.
How to Open an ERC-20 Ethereum Wallet?
If you want to be an experienced investor in the cryptocurrency field, you should prefer offline wallets where you have complete account control. By using this wallet, you will protect your coins from the negative effects of third parties or institutions. To create an ERC-20 based wallet, you need to log in to Myetherwallet. When you log in to the site, you need to create a secure password. After the password process, the “Create New Wallet” option allows you to access the Myetherwallet wallet files. You should copy the keystore files to your computer by using the “Download Keystore File” option. In the final stage of creating a wallet, there is a “Private Key”. This option is a secret key that allows you to log in to your wallet without a password. With this key, you will secure your wallet in case of making and receiving payments online. You can choose the option to log in to your wallet as a keystore file that you download to your computer, as a Private Key, or as an add-on to use in your browser.
What is the structure of ERC-20?
ERC-20 standards are divided into two groups as mandatory and optional. All tokens on the Ethereum network that are expected to become functional must meet mandatory standards. Mandatory standards are the source of smart contracts. Developers need to own an equal number of the Ethereum network tokens in question, and when this equity is balanced, the transfer process comes into play. The existence and number of currencies to be transferred through smart contracts are also checked. For the transfer between two users, the system called transfer form is activated. When all conditions are appropriate, the requested action is taken.
How Does ERC-20 Work?
ERC-20 is a system that works only on the Ethereum network and has no function on other networks. It aims to create an easier, faster and safer investment environment. Since there is a uniform technology, the tokens included in the platform are easier to follow and have an effect that increases the speed of transactions. When a new token is included in different systems, the whole layout has to be re-adapted and it takes a long time for transactions to take place. Since ERC-20 sets its standards from the beginning to eliminate this, that is, they do not need to build from scratch, the newly introduced tokens easily adapt and start working quickly.
ERC20 Tokens
Examples of tokens are chainlink (LINK), Basic Attention Token (BAT), Menapay (MPAY), Bilira (TRYB). You can also find these tokens on our exchange Icrypex.
Chainlink
This token uses different nodes (just a copy of the blockchain on a single computer or other hardware device) to obtain the desired data. These nodes form a consensus before transmitting the data to the smart contract. Chainlink ‘s main task is to make it possible to run these nodes in a decentralized way.
Basic Attention Token
BAT is a token developed for use among advertisers, publishers and users serving in the digital advertising market.
MenaPay
The MenaPay platform provides solutions for using cryptocurrency as a payment method. It provides a 100% reliable and transparent structure with the use of excellent blockchain.
BiLira
This token is referred to as a stablecoin. It is a token whose value is indexed to fiat currencies. It is pegged to one Turkish lira and does not risk depreciation.
