{"id":756,"date":"2022-12-24T17:57:43","date_gmt":"2022-12-24T17:57:43","guid":{"rendered":"https:\/\/www.cryptocurrencytick.com\/?p=756"},"modified":"2022-12-24T17:57:43","modified_gmt":"2022-12-24T17:57:43","slug":"what-is-erc-20","status":"publish","type":"post","link":"https:\/\/www.cryptocurrencytick.com\/what-is-erc-20\/","title":{"rendered":"What is ERC-20? ERC-20 in 5 Title"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 ez-toc-wrap-right counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Titles of Guide<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-63a81dfa36950\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-63a81dfa36950\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.cryptocurrencytick.com\/what-is-erc-20\/#Example_of_ERC-20_Tokens\" title=\"Example of ERC-20 Tokens\">Example of ERC-20 Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.cryptocurrencytick.com\/what-is-erc-20\/#How_did_ERC-20_Come_Into_Existence\" title=\"How did ERC-20 Come Into Existence?\">How did ERC-20 Come Into Existence?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.cryptocurrencytick.com\/what-is-erc-20\/#What_are_the_Features_of_ERC-20_Tokens\" title=\"What are the Features of ERC-20 Tokens?\">What are the Features of ERC-20 Tokens?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.cryptocurrencytick.com\/what-is-erc-20\/#The_Most_Popular_ERC-20_Tokens\" title=\"The Most Popular ERC-20 Tokens\">The Most Popular ERC-20 Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.cryptocurrencytick.com\/what-is-erc-20\/#How_to_Buy_ERC-20_Tokens\" title=\"How to Buy ERC-20 Tokens?\">How to Buy ERC-20 Tokens?<\/a><\/li><\/ul><\/nav><\/div>\n<p>ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. It defines a common set of rules that Ethereum tokens must follow, which allows them to be easily traded on Ethereum and other platforms.<\/p>\n<p>ERC-20 tokens are digital assets that can represent a wide range of value, such as a store of value, a representation of a physical asset, or a utility in a decentralized application (DApp). ERC-20 tokens are created and transferred using Ethereum transactions, and they can be stored in Ethereum wallets.<\/p>\n<p>The ERC-20 standard was introduced in 2015 and has since become the most widely used standard for creating and issuing tokens on the Ethereum blockchain. It has also inspired the development of other token standards, such as ERC-721 for non-fungible tokens and ERC-1155 for combined token and asset standard.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Example_of_ERC-20_Tokens\"><\/span><strong>Example of ERC-20 Tokens<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Here are a few examples of ERC-20 tokens:<\/p>\n<ul>\n<li>Ethereum (ETH): Ethereum is the native token of the Ethereum blockchain and is used to pay for transaction fees, fuel smart contracts, and facilitate value transfer. It is one of the most widely used and well-known ERC-20 tokens.<\/li>\n<li>Tether (USDT): Tether is a stablecoin that is pegged to the value of the US dollar. It is designed to maintain a stable value and is commonly used as a safe haven for investors looking to hedge against cryptocurrency market volatility.<\/li>\n<li>Dai (DAI): Dai is a decentralized stablecoin that is collateralized by cryptocurrency assets. It is designed to maintain a stable value relative to the US dollar and is used as a medium of exchange in decentralized finance (DeFi) applications.<\/li>\n<li>Chainlink (LINK): Chainlink is a decentralized oracle platform that enables smart contracts to access external data sources and off-chain computation. It is used to facilitate data transfer between different blockchain networks and is an important component of the DeFi ecosystem.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"How_did_ERC-20_Come_Into_Existence\"><\/span><strong>How did ERC-20 Come Into Existence?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ERC-20 technical standard was introduced in 2015 by a developer named Fabian Vogelsteller. Vogelsteller proposed the standard as a way to standardize the process of creating and issuing tokens on the Ethereum blockchain.<\/p>\n<p>Before the introduction of the ERC-20 standard, each token on the Ethereum blockchain had to be implemented as a separate smart contract, which made it difficult to create and trade tokens in a consistent and interoperable way. The ERC-20 standard provided a set of guidelines and rules that developers could follow to create and issue tokens that were compatible with each other and with Ethereum wallets and exchanges.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_Features_of_ERC-20_Tokens\"><\/span><strong>What are the Features of ERC-20 Tokens?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ERC-20 standard defines a set of rules that all ERC-20 tokens must follow in order to be compatible with each other and with Ethereum wallets and exchanges. These rules include:<\/p>\n<ul>\n<li>Token Name: Each ERC-20 token must have a unique name that represents the token&#8217;s purpose or function.<\/li>\n<li>Token Symbol: Each ERC-20 token must have a unique symbol that represents the token and is used to identify it on exchanges and wallets.<\/li>\n<li>Total Supply: Each ERC-20 token must have a fixed total supply that represents the maximum number of tokens that will be created.<\/li>\n<li>Decimals: Each ERC-20 token must have a defined number of decimal places that represent the smallest unit of the token. This allows the token to be divisible and allows for fractional amounts of the token to be traded.<\/li>\n<li>Transfer Function: The ERC-20 standard defines a transfer function that allows tokens to be transferred from one Ethereum address to another.<\/li>\n<li>Balance Of Function: The ERC-20 standard defines a balanceOf function that allows the balance of a particular Ethereum address to be queried.<\/li>\n<li>Approve And TransferFrom Functions: The ERC-20 standard also defines approve and transferFrom functions that enable tokens to be transferred from one address to another without the need for the owner to initiate the transfer. This is useful for creating contracts that can transfer tokens on behalf of the owner.<\/li>\n<li>Events: The ERC-20 standard defines a set of events that can be emitted by the smart contract to signal certain actions, such as the transfer of tokens.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"The_Most_Popular_ERC-20_Tokens\"><\/span><strong>The Most Popular ERC-20 Tokens<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are many ERC-20 tokens that are widely used and popular, but some of the most well-known examples include:<\/p>\n<ul>\n<li>Ethereum (ETH): Ethereum is the native token of the Ethereum blockchain and is used to pay for transaction fees, fuel smart contracts, and facilitate value transfer. It is one of the most widely used and well-known ERC-20 tokens.<\/li>\n<li>Tether (USDT): Tether is a stablecoin that is pegged to the value of the US dollar. It is designed to maintain a stable value and is commonly used as a safe haven for investors looking to hedge against cryptocurrency market volatility.<\/li>\n<li>Chainlink (LINK): Chainlink is a decentralized oracle platform that enables smart contracts to access external data sources and off-chain computation. It is used to facilitate data transfer between different blockchain networks and is an important component of the decentralized finance (DeFi) ecosystem.<\/li>\n<li>Uniswap (UNI): Uniswap is a decentralized exchange protocol that allows users to trade Ethereum-based tokens directly with each other. The UNI token is used to govern the protocol and provide holders with various benefits and privileges.<\/li>\n<li>Wrapped Bitcoin (WBTC): Wrapped Bitcoin is an ERC-20 token that represents a single bitcoin (BTC) on the Ethereum blockchain. It allows users to use bitcoin in Ethereum-based decentralized applications (DApps) and facilitates the transfer of bitcoin between different blockchain networks.<\/li>\n<li>Maker (MKR): Maker is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain and is responsible for the governance and stability of the Dai stablecoin. MKR is the native token of the Maker platform and is used to participate in the governance and decision-making process of the DAO.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Buy_ERC-20_Tokens\"><\/span><strong>How to Buy ERC-20 Tokens?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are a few different ways to buy ERC-20 tokens:<\/p>\n<ol>\n<li>Cryptocurrency Exchanges: You can buy ERC-20 tokens on a cryptocurrency exchange that supports Ethereum. To do this, you&#8217;ll need to create an account on the exchange, verify your identity (if required), and transfer funds from your bank account or another cryptocurrency wallet to the exchange. Once your funds are available on the exchange, you can search for the ERC-20 token you want to buy and place an order. The token will be transferred to your exchange wallet once the order is filled.<\/li>\n<li>Peer-to-Peer (P2P) Platforms: You can also buy ERC-20 tokens on a peer-to-peer (P2P) platform, such as LocalBitcoins or Paxful. These platforms allow you to buy and sell cryptocurrencies directly with other users, without the need for a centralized exchange. To buy ERC-20 tokens on a P2P platform, you&#8217;ll need to create an account, find a seller who is offering the tokens you want to buy, and agree on the terms of the sale.<\/li>\n<li>Over-the-Counter (OTC) Trading: If you want to buy a large amount of ERC-20 tokens, you may be able to do so through over-the-counter (OTC) trading. OTC trading is a type of trading that occurs outside of formal exchanges and is usually done by large institutions or high-net-worth individuals. You can find OTC traders by contacting a cryptocurrency OTC desk or by joining an online OTC trading group.<\/li>\n<\/ol>\n<p>Regardless of the method you choose, it&#8217;s important to do your research and due diligence before buying ERC-20 tokens. This includes researching the token, understanding the risks involved, and ensuring that you&#8217;re using a secure and reputable platform or service to buy the tokens.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. It defines a common set of rules that Ethereum tokens must follow, which allows them to be easily traded on Ethereum and other platforms. ERC-20 tokens are digital assets that can represent a wide range of value, such as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":757,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[],"_links":{"self":[{"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/posts\/756"}],"collection":[{"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/comments?post=756"}],"version-history":[{"count":2,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/posts\/756\/revisions"}],"predecessor-version":[{"id":760,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/posts\/756\/revisions\/760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/media\/757"}],"wp:attachment":[{"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/media?parent=756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/categories?post=756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocurrencytick.com\/wp-json\/wp\/v2\/tags?post=756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}