What Is an ERC-20 Token?
With the recent meteoric rise in ICO's (initial coin offerings), many of us in the cryptocurrency space have heard the term "ERC-20 token" thrown around quite a bit. That's because many of the new cryptocurrencies are created on the ethereum block-chain to become ERC-20 tokens. An ERC-20 token is simply an ethereum-based token that meets a specific set of criteria. The term ERC stands for "Ethereum Request for Comments" which is a fancy way of saying that each token meets a certain protocol requirement. The requirements to be considered an ERC-20 tokens are many but to keep it simple here are a few:
- The token must specify how it will be transferred from one user to another
- The token must provide information about how to access it such as the name, supply, balance, and symbol of the token.
- The token must also describe how it will send signals to the ethereum block-chain and how it will receive them from other users in the network.
ERC-20 tokens are required to meet these criteria because they allow for transactions to be processed seamlessly by the ethereum block-chain. When tokens meet or exceed these standards it allows for the ethereum ecosystem to function the way it was designed to function; quickly and effectively. As a result of these standards many different wallets such as the Jaxx wallet or My Ether Wallet, can easily integrate ethereum-based, ERC-20 tokens. My favorite online wallet is My Ether Wallet because of it's security and simplicity. If you are interested in a safe way to store your ethereum or ERC-20 tokens please check my steemit blog for more information about how to use My Ether Wallet or message me on Twitter: https://twitter.com/CalebFardig