Ethereum is a very popular cryptocurrency, based on tokens usage. Tokens are allowed to be purchased, traded and sold. Tokens work as different series of digital assets and are represented as smart contracts. They promote Ethereum system’s work. These tokens can be tracked with a cryptocurrency portfolio tracker.
ERC-20 are the most popular tokens. For smart contracts there appears to be rather preferred token performance standard on the Ethereum system. Of course, there are other smart contract platform such as Stellar that perform greatly. Check out xlm news to find out more about Stellar.
The ERC-20 outlines a list of rules that all other Ethereum tokens have to follow, thus it has achieved an essential significance. These special tokens enable many developers to properly examine how every newly created token will work on a bigger Ethereum blockchain system. This opportunity makes developer’s work easier because they can continue working already being informed that if each time they create a new token and if that token keeps the defined regulations, there is no necessity to remake a new project.
The ethereum blockchain system has a lot of other tokens as well and in favor of them, ERC-20 provides 6 diverse functions. Mainly they are functional issues, but they involve the methods like how tokens are transferred or how it is possible to have access to a specific token’s data.
So, a number of functions guarantees that different types of tokens on the ETH blockchain will regularly work at every place in the system. It’s clear that all the digital wallets that support Ethereum also support ERC-20 tokens.
As ERC-20 is growing and developing, Some troubles might emerge that will be necessary to be solved. For instance, smart contracts cannot accept direct transfers, that’s why sending Ethereum tokens to a smart contract will be a loss of money. To solve this problem the Ethereum team is working to create a new standard. Anyway, ERC-20 tokens stay an important element of the Ethereum system and it is possible to continue making progress.
ERC-20 has several benefits. Actually, it simplifies everything. According to global standards, new tokens are allowed to be located on an exchange, besides, as soon as a new token is created, it can automatically be transferred to a wallet. The process of creating new tokens is very easy due to ERC-20, and as a result, Ethereum became one of the most famous platforms in 2017.
As ERC-20 tokens are based on the ETH system, they can be traded on the system. If you plan to store ERC-20 tokens you should apply to your ETH wallet and then you will be able to transfer them to other ETH wallets. However, there is a special action you must not do. Don’t use your exchange address, because exchanges create various special addresses for users, so generally, the exchange address and the ERC-20 addresses are different. This working method doesn’t let you send ERC-20 tokens to the exchange’s address because it won’t identify the address and you cannot receive ERC-20 tokens.
For more useful information about monitoring your tokens, check out this guide on cryptocurrency portfolio management.