What is an ERC-20 Token?

The notoriety of the ERC20 token occurred last year with many of the ICOs (Initial Coin Offering) that were carried out, where a considerable number of companies raised millions for their new projects.

The ICOs of new projects became very popular among investors who were looking for new opportunities in the cryptocurrency market. In these ICOs, the ERC20 token was offered in exchange for Bitcoin, Ethereum or some other cryptocurrency for fundraising. However, this year,erc20 token creator although they continue to be carried out and the enthusiasm continues, participation has decreased due to the changes in focus of the investors themselves and some corrections made to the process.

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What is an ERC20 Token?
ERC-20 is a token belonging to the decentralized smart contract platform Ethereum. Its name means, Ethereum Request For Comments or in Spanish, Ethereum Comments Request and the number 20 is established as a standard identification to differentiate it from others.

These tokens, which are built on top of the Ethereum Blockchain, are standard protocols that regulate the issuance of new tokens on the network, meaning that all new tokens must meet certain rules and parameters for acceptance. The goal and need for this standard, apart from creating a parameter to follow, is to create interoperability between tokens and encourage improvements in the Ethereum ecosystem.

Obtaining the total supply of tokens, obtaining the balance of the account, transfer capacity of the token and the possibility of spending it, are some of the standard functions that must be fulfilled for the incorporation and interaction of new tokens. Although not all other tokens meet these characteristics, they can still be compatible and interact with the ERC20 in some functions, depending on their capabilities.

This token, being a digital asset like any other, can also be traded in a similar way to Bitcoin, Ether or any other cryptoactive. Also adding that your transactions can be tracked in the same way as a cryptocurrency, on the Ethereum Blockchain.

Differences between a cryptocurrency and an ERC20 token
In a previous opportunity, the topic that explained the concept of token in the cryptocurrency sector had been discussed , for this occasion we will address how this particular token differs from any other cryptocurrency, such as bitcoin or ether.

The main difference is that the ERC20 token does not have its own blockchain like cryptocurrencies, it circulates on the Ethereum blockchain. Taking this into consideration, any transaction involving the token will be carried out and will depend on the Ethereum network, which also requires some GAS as a fee, to carry out operations with the token on its platform.

Why is the ERC20 standard important and what are its benefits?
The key to the ERC20 token is its set of standard rules that allow interoperability in the Ethereum ecosystem, with the wide variety of tokens and other decentralized applications compatible with each other.

These rules and standards will allow developers to create new technologies with a smaller margin of error, by being aware of the necessary conditions so that they can integrate and coexist in the network.

The use of this token allows new projects to use the Ethereum Blockchain to boost their projects, since most if not all of the initial coin offerings are made on this platform.

The creation of the ERC20 token as a standard has brought numerous benefits to the ecosystem and to the development of new technologies, optimizing its incorporation and compatibility with the rest of the applications.

As some of these benefits we can mention:

The technology unit and a standard protocol, facilitating the work of developers. Less complexity in understanding each implemented token type, since they will all be based on the same functional principles.
Greater liquidity of ERC20 tokens, as they are used in a large part of ICOs and as a working base for projects. Lower risk of breaking contracts, as there are no impediments or incompatibilities. erc20 token generator The uniformity provided by the standard characteristics of the token to the network also generates ease of exchange between users, dispensing with intermediaries in transactions.

Wallets compatible with ERC20 tokens
Since most ICOs are carried out with the use of this ERC20 token and the Ethereum Blockchain, it is essential to have a compatible and secure wallet to store them, if at any time we participate in one of them.

There are a wide variety of alternatives in terms of wallets that support this token, with a hardware being the most optimal and secure version, but other free versions are also available on the web.

Below I list some of the most recommended options in terms of wallets to store this token.

MyEtherWallet
Ledger Nano S
Trezor
meta mask
mist

Conclusion
There are currently a large number of ERC20 tokens on the Ethereum Blockchain, which means that the standard has had a good impact on the development of other tokens and decentralized applications that interact with the network.

On the other hand, in addition to simplifying innovation for developers, it creates a space for the possibility of fraud by carrying out ICOs through the ease provided by this protocol, create erc20 token so it is advisable to be careful in the future when participating in an offer of some new project.

Its value will be established over time depending on the utility provided to it, but so far it has been a great contribution to the Ethereum platform and to the development activity in the ecosystem as such.

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