Understanding the ERC-20 Token
ERC 20 is the standard used technically by smart contracts to create tokens on the Ethereum blockchain network . Now, more and more crypto assets are being successfully created and launched thanks to its presence. How does it work and how can a smart contract be said to meet this standard?
Smart Contracts at a glance For the sake of better understanding, you should first understand how to create tokens before this standard is introduced. The first step is to create a smart contract or smart contract. The contract is decentralized and has an important role in the creation of token assets. Smart contracts record and manage each transaction so that all vital information is stored in it.
There are thousands of users who create smart contracts, but there are no universal rules that can be used as guidelines. Each user uses different settings for their tokens. Digital wallets and exchanges also find it difficult to ensure that each contract can interact with each other to allow token trading to occur.
Advantages of ERC-20 ERC20 token generator has various advantages, the first is that there are extensive customization options so that developers and publishers can experiment more freely. For example, there are several developers who are experimenting with using ERC-20 for in- game currency .
With the ERC-20, developers are also given the convenience of creating their own tokens. The advantages for developers are that the creation of ERC-20 tokens is cheaper, it is safe because of the smart contract and it is very easy to create this type of token because it does not have to do complicated coding .
Disadvantages of ERC-20 Since ERC-20 is the first token standard to be developed on the Ethereum network, it also has some drawbacks. The disadvantage of this token is that the transaction speed is quite slow, each transaction can occur in one minute. This can be said to be less fast by some users.
Another drawback is when decentralized applications have high demand. This will have an impact on the Ethereum network which will become slower and transaction fees will be more expensive. Since ERC-20 runs on the Ethereum network, this shortcoming will also impact this type of token.
Example of a Token using ERC-20 There are several tokens created using ERC-20. Some of them are Chainlink and UNI. Chainlink was created with the aim of being a liaison between external data or external data with smart contracts on the Ethereum network or other similar crypto networks.
UNI, the token from Uniswap is also included in the token of the ERC-20 and is developed on the Ethereum network. Uniswap itself functions as a decentralized application . Ethereum wallet owners can directly exchange their tokens for ERC-20 tokens due to Uniswap.
ERC-20 Token Generation To create an ERC-20 token, there are several conditions that must be met by the developers. There are 6 mandatory conditions that must be met and 3 optional conditions before creating this type of token. If these mandatory conditions are not met, the developer cannot create and release tokens.
ERC-20 makes it easy for developers who want to create tokens, because before the ERC-20 token standard, creating tokens can be said to be quite complicated and can be time consuming so the process is not efficient.
ERC token standard development Since ERC-20 is a new token standard and also the first token standard on the Ethereum network, there are still some issues being experienced. In the future, ERC-20 will continue to develop and undergo updates to overcome the problems that exist in ERC-20. One of the developments carried out is by creating new standards such as ERC-223.
ERC-20 is the standard used technically by smart contracts in the creation of tokens on the Ethereum blockchain network . Now, more and more crypto assets are being successfully created and launched thanks to its presence. How does it work and how can a smart contract be said to meet this standard?
Smart Contracts at a glance For the sake of better understanding, you should first understand how to create tokens before this standard is introduced. The first step is to create a smart contract or smart contract. The contract is decentralized and has an important role in the creation of token assets. Smart contracts record and manage each transaction so that all vital information is stored in it.
There are thousands of users who create smart contracts, but there are no universal rules that can be used as guidelines. Each user uses different settings for their tokens. Digital wallets and exchanges also find it difficult to ensure that each contract can interact with each other to allow token trading to occur.
Advantages of ERC-20 ERC-20 has many advantages. The first advantage is that create erc20 token has extensive customization options so developers and publishers can experiment more freely. For example, there are several developers who are experimenting with using ERC-20 for in- game currency .
With the ERC-20, developers are also given the convenience of creating their own tokens. The advantages for developers are that the creation of ERC-20 tokens is cheaper, it is safe because of the smart contract and it is very easy to create this type of token because it does not have to do complicated coding .
Disadvantages of ERC-20 Since ERC-20 is the first token standard to be developed on the Ethereum network, it also has some drawbacks. The drawback of the ERC-20 token is that transactions in ERC-20 are quite slow, each transaction can occur in one minute. This can be said to be less fast by some users.
Another drawback is when decentralized applications have high demand. This will have an impact on the Ethereum network which will become slower and transaction fees will be more expensive. Since ERC-20 runs on the Ethereum network, the shortfall will also impact the ERC-20 token.
Example of a Token using ERC-20 There are several tokens created using ERC-20. These tokens are like Chainlink and UNI. Chainlink was created with the aim of being a liaison between external data or external data with smart contracts on the Ethereum network or other similar crypto networks.
UNI, the token from Uniswap is also included in the token of the ERC-20 and is developed on the Ethereum network. Uniswap itself functions as a decentralized application . Ethereum wallet owners can directly exchange their tokens for erc20 token development tokens due to Uniswap.
ERC-20 Token Generation There are several conditions that must be met by the developers to create this token. There are 6 mandatory conditions that must be met and 3 optional conditions. If these mandatory conditions are not met, the developer cannot create and release tokens.
ERC-20 makes it easy for developers who want to create tokens, because before the ERC-20 token standard, creating tokens can be said to be quite complicated and can be time consuming so the process is not efficient.
ERC token standard development Since ERC-20 is a new token standard and also the first token standard on the Ethereum network, there are still some issues being experienced. In the future, ERC-20 will continue to develop and undergo updates to overcome the problems that exist in ERC-20. One of the developments carried out is by creating new standards such as ERC-223.