If you are working with ICOs and tokens your might have heard about the ERC20 tokens and all about it. Most of these tokens and the ICOs introducing are based on this ERC20 tokens and knowing about them and working might helpful.
The previous year ICO boom was included with this ERC20 token and many token ICOs are based on them too, it was the major part of the million dollar ICO firms collections.
Many of us might have invested in many ICOs and might have been had a clear vision, for now, the working and the system of distribution of these ICOs.
Are ICOs Safe To Invest In? Beware of Scams!
So today we will discuss what is this ECR20 Tokens working, price, list of the ecr20 and wallet its been supported on finally some more about this system.
What is this ERC20 Token?
The term ERC in ‘ERC20 Token’ stands for Ethereum Request For Comments and the number 20 stands for the unique number ID allocated to distinguish this standard from others.
The ERC20 is a standard protocol which defines the rules and working of the Tokens on the Ethereum Blockchain Network.
The perfect example to explain would be comparing it with the HTTP “Hypertext Transfer Protocol” which defines the protocol defines the working of the world wide web transferring the hypertext that is the HTML. Just like that we have ERC20 a different protocol with have some rules and onto which these tokens systems talk to each other.
For those who want to understand it in deeper, can find it here.
Difference Between the Standard Cryptocurrency and ERC20 Tokens
The interesting part about the ERC20 tokens is that it just like the other blockchain cryptocurrency like bitcoin or litecoin, you can trade buy, send to others and all other. But the difference is that they don’t have their own blockchain and works entirely on the ethereum blockchain.
Sending or trading these token requires an amount of the fee. Since they are working on the ethereum blockchain hence it requires fees in Ethereum as a GAS(GAS is the fee for the transaction the more GAS the faster your transaction gonna transfer).
Amongst the famous wallet supporting ERC20 tokens is MyEtherWallet.
Some of the tokens working on ERC20
- EOS
- Tron
- Qtum
- OmiseGo
- Binance Coin
Some of ERC20 token supportive wallet
- Exodus
- MyEthereWallet
- Coinbase
Check out list of Top 100 Tokens @coinmarketcap
Advantages of ERC20 Token System
- Uniformly and fast transaction.
- Confirms the transaction more efficiently.
- Reduce risk of contract breaking.
- The function implemented in ERC20 help the web client to interact with token and blockchain more efficient and fast.
How to buy one of these ERC20 Token
Well as I mention its actually a token with a name, so can get these token from any exchange by selling your bitcoin of ethereum to one of these tokens. Investing in a token system could be beneficial over the normal if you are considering fast transactions.
Some ICOs guarantee to give positive results if you invest in these tokens you should really consider but be aware as many of them are really scams.
Get Started Buying tokens and altcoins from binanace.
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