What Are ERC20 Ethereum Tokens?
When talking about Ethereum, it is hard not to bring up what ERC20 tokens are.
Mainly because these are what create the fantastic Dapp structure running on Ethereum.
What Are ERC20 Ethereum Tokens?
Ethereum created ERC20 tokens as a standard token for all Ethereum Dapps.
It quite literally stands for “Ethereum Request for Comment - Issue #20.”
This helps define a set of rules and borderlines for all Ethereum tokens to follow.
With ERC 20 tokens there is a set of six different boundaries that new ICOs or companies wanting to utilize the Ethereum blockchain have to follow...
This also takes on two different signals that each token can attune to.
And then they utilize Ether as Ethereum's Gas in order to run transactions on the Ethereum Blockchain.
For example, using the website ethplorer results in one seeing a screen like this.
Here you can see some of the uniformity that ERC 20 tokens have to follow.
With decimals specified in the actual division of the currency, the symbol, and the original owner address.
Otherwise, this template allows companies to create icons and launch tokens easily.
Although, that isn’t to say bad tokens with no purpose won’t get issued because they do all of the time.
Having a standard in API (application programming interfaces) allow for smooth transition and development on the Etheruem network.
Where Are ERC20 Ethereum Tokens Stored?
There is a lot of confusion around this topic because for many coins they have specific wallets.
While with ERC-20 tokens there is a bit of a different use case.
They don’t need to if the wallet application they are using can integrate with the full ethereum blockchain and store ERC20 tokens.
See with the Ledger Nano S; you can log onto Myetherwallet and send any ERC20 tokens to your Ledger.
It will be stored via your Ethereum address, and not an address of its own.
Not only does this allow for efficiency, but it is the reason that platform based cryptocurrencies have so much potential.
And this is the creation of a blockchain ledger based society that is trustless.
Executable commands that lie on the Ethereum Blockchain, but can branch off and execute any actions that they need to achieve.
Therefore, you can store your ERC20 tokens in Myetherwallet or the like (if they accept ERC20 tokens) just make sure you add their details to see them show up.
Thanks for reading,
The GCA Team
Take The Survey And Find Out Which Coin Is A Good Investment!
What is a DAO (Decentralized Autonomous Organization)? DAO stands for “Decentralized autonomous organization.” Now what does that mean? What is a Decentralized Autonomous Organization (DAO)? Most people read through Ethereum’s website or see something called the “dao” and wonder what it means. And well, it’s a little more than most people would imagine. A DAO is…
The Beginner’s Guide To Bitcoin Part 3 How To Buy And Store Bitcoin HOW TO BUY BITCOINS HOW TO BUY BITCOINS Similar to how you would exchange any Fiat currency at a foreign exchange (for example US dollars to Euros), “buying” Bitcoin is simply exchanging it at a Cryptocurrency Exchange. It’s important to remember that…
The Top 5 Beginner Crypto Mistakes – Don’t Make These 1. Buying High / Selling Low Here is the advice that everyone hears when they join any market. Buy low, sell high. Granted most people don’t listen to this advice. The mind can play many tricks, and one of them is the thought of making…