What of those who are even slightly familiar with cryptocurrencies have heard about the ERC-20 standard. In fact, ERC-20 tokens represent a variety of existing coins built on the basis of the Ethereum blockchain, the second in the degree of capitalization of a cryptocurrency network. That is, the creators of such tokens use the technical capabilities of Ethereum, supporting, among other things, their wallets, but the coins themselves have their own value and emission.
Today, in the cryptocurrency world, the main tools for raising funds for the implementation of their own ideas are the ICO, that is, the primary placements of tokens. At the same time, the vast majority of new projects are built on the basis of What smart contracts. Accordingly, the sale of primary tokens created on the basis of the ERC-20 standard is carried out for ETH or BTC coins.
When participating in Airdrop, project owners in most cases spend money on erc 20 wallets, since the credited coins belong to this standard.
At the same time, investors need to understand that belonging to the Ethereum network does not provide new coins with the same exchange success as ETH coins. It is possible that they do not get to trade on the stock exchange at all.
A lot of new coins appear weekly, but only a few of them will increase in price by hundreds and thousands of percent, bringing profit to owners. Many are simply created by fraudsters to collect money from people, hiding behind beautiful words about promising ideas. That is why investments in ICO have significant risks.
The reasons for the emergence of the standard ERC-20
The creation of a unified standard was the result of the need to eliminate the diversity of smart contracts used in each network, which greatly complicated their compatibility. As a result, to work with each of the tokens, trading platforms and e-wallets required to have a unique code, which, in the presence of a huge number of new coins, led to significant technical difficulties.
The created single protocol made it possible to completely eliminate this problem, and adding new listings to the listings on its base does not require any software manipulations with the creation of codes.
Storage of ERC-20 tokens
To store funds, it is enough for the user to have a standard erc 20 wallet for working with Ethereum. Taking into account the only blockchain, the wallet will be universal, supporting the storage of various coins created on a common standard. Accordingly, all completed transactions will be reflected in Etherscan.
Despite the many wallets available for working with Ethereum, it is worth recommending MyEtherWallet. This wallet works with any tokens based on the ERC-20 standard. Other wallets are not able to offer such diversity. Money for them will be credited, but to see them or do some manipulations will not work.
It is necessary to recognize that the emergence of the What standard was an important step towards the improvement of cryptocurrency while introducing diversity and versatility into the digital currency world.
