You may have heard of ERC20 tokens may even own them. But do you know many more standards are also there besides ERC20? To give you a better idea let us discuss this.
ERC means “ Ethereum Request for comment” it is a proposal that was submitted for the suggestion and discussion on actual standards. The number that follows it like 20 means its issue number on the code sharing platform Github.
What is exactly ERC20?
With the introduction of ERC20, it has revolutionized the crypto world and has opened the door to ICO cryptocurrency. ERC20 has defined a specific set of rules that have to be followed by Ethereum deployed token, this rule has simplified the programming of tokens on the Ethereum blockchain. These are the special form of smart contracts that work on Ethereum blockchain. Some of the examples of ERC20 are VeChain, Bancor, Bankex etc.
Before the innovation of ERC20 tokens, coders had to create implementation standards to develop tokens on the Ethereum network. Because of ERC20, this process has got simplified as it is based on the streamlined protocols and the smart contracts. These tokens have simplified the complexity associated with the creation of the smart contracts.
The ECR20 token is the subset of Ethereum tokens, in order to get full compliance of ECR20 the developers need to integrate some specific set of functions with the smart contracts at the high level to allow them to perform the following actions:
- To obtain the total coin supply.
- To obtain the account balance.
- Transmit the tokens
- Spending approval of the tokens
ERC20 permits seamless interaction of other smart contracts and decentralized application of the Ethereum Blockchain. The tokens that do not have all the functions of ERC20 are considered as a partial complaint, but can still be useful for the external parties depending on the functions they are missing. Ethereum network has many existing tokens and many upcoming tokens are waiting on the pipeline to be released by the end of this year.
All the ERC20 complaint tokens work on the similar test cases, some of the ERC 20 complaint tokens are also working towards its improvisation. Questioning the future of these tokens is questioning Ethereum itself. You will be getting the steady supply of these tokens as long as people wish to innovate on the Ethereum blockchain. Please click on the link Bitcoin Trader for more information.