#create erc20 token

The Ethereum blockchain was created as a convenient and functional platform for launching dApps. The chain quickly became popular.

What is the ERC-20 standard in simple words

Before the advent of the Ethereum blockchain, a new network had to be created to launch a coin. This is a complex job that requires a team of programmers to implement. Since the creation of the Ethereum chain in 2014, startups have been able to launch tokens based on it.

To make the process even easier, the developers proposed creating tokens using a single template. This significantly reduced the amount of work required. In 2023, any user can launch a token using to create ERC20 token standard. Programming experience is desirable, but not required. Topic blogs have templates for key features.

Decoding the abbreviation and essence

ERC stands for Ethereum Request for Comments. This is the name of all proposals for updating the code in the blockchain, 20 is its serial number. ERC-20 is not the only attempt to standardize Ethereum tokens.

History of appearance

Initially, developers created their own tokens based on Ethereum. The code for them had to be written from scratch. While the network was young, there were no difficulties, but as it grew, compatibility problems began to appear. In addition, many different smart contracts required high computing power.

The solution was proposed in 2015 by programmer Fabian Vogelsteller and blockchain founder Vitalik Buterin. They developed a unified standard for cryptocoins. However, it was accepted only 2 years later — in 2017. The delay arose due to the complexity of the procedure:

First, the creators are introducing the Ethereum Modernization Initiative (EIP). A brief presentation and a full description of the protocols used must be provided.

Community members are reviewing the proposal.

If necessary, corrections are made.

Voting is underway.

If the community supports the idea, the developers begin to implement it.

Why is it needed and functionality?

Before the launch of a single standard, developers were faced with the problem of token compatibility. Each of them had a unique smart contract. To run the application, a large amount of computing memory was needed, so dApps worked slowly, froze and crashed.

In addition to standard functions (transfer of assets, checking balance, permission to manage the platform), ERC20 token development network tokens have the following options:

Linking the price to the total capitalization of the token. This provides a reserve fund. There is automatic balancing of tokens.

Freezing an asset with the ability to unfreeze if necessary.

Flexibility. Developers have the opportunity to add unique features to the coin.

Is it possible to mine

Standard tokens do not have their own infrastructure to validate blocks. Transfers on the network are carried out using the computing power of the Ethereum blockchain. Validators receive ETH coins as a reward for their activities. Only developers can create ERC-20 tokens. Usually they release the entire volume at the same time and distribute it through ICO or IEO. Also, the founders of the project can provide for the possibility of an additional issue.

Advantages

The development of the ERC-20 standard has simplified the creation of cryptocurrencies. On average, an experienced programmer can launch a new coin in 40–60 minutes. A smart contract is written in the Solidity language, which is in many ways similar to JavaScript. Thanks to high liquidity, you can quickly exchange assets on DEX.

Token fungibility

Creators of standard assets have the right to establish the degree of divisibility of units characteristic of all digital coins. For example, Bitcoin can be divided into 100 million satoshis. All units of cryptocurrency are identical and have the same value. Therefore, it makes no difference which specific token the investor owns. This allows you to use standard assets for settlements.

Various uses

Tokens are easily customizable, so developers can add useful features to them within projects. For example, standard assets can be used for settlements on the platform, as in-game currency, to participate in voting, and to generate income in deposits and liquidity pools.

Popularity

By June 2023, users had made more than 1.26 billion transactions with Ethereum tokens. The ecosystem is served by 41 DEX. Coins can also be exchanged in wallets — MetaMask, Trust Wallet, Atomic Wallet and others.

Flaws

To transfer standard coins you need to pay gas. Vitalik Buterin’s team is committed to increasing the throughput of the blockchain.

Scalability issues

The main disadvantage of most blockchains is low throughput. To increase transaction speed, developers have to sacrifice security and decentralization of the chain. In 2021, at peak demand, fees on Ethereum reached $100, which led to the creation of many clone networks and second-layer (L2) blockchains. Despite this, in 2023 Ethereum continues to lead in terms of the volume of blocked funds (56.8% of total TVL).

Easy to scam

A single standard simplifies the launch of assets as much as possible. To create a cryptocurrency and list it on a DEX, you just need to enter the contract address and provide liquidity. No documents confirming the reliability of the project are required. This is taken advantage of by scammers who organize pyramids under the guise of blockchain platforms.

Other risks

The ERC20 token development company in Ethereum standard has been actively used by developers since 2017. Despite their proven security, smart contracts can have hidden vulnerabilities. There are other risks for users.

For example, standard tokens do not have their own tools for processing transactions. To do this, you need to run the transfer function (regular transaction) or transferFrom (participation in ICO).

Another disadvantage of smart contracts is related to their uncertain legal status. In 2023, cryptocurrency is not legalized in many countries. Smart contract technology is in a gray area. The main requirement of most contracts is verification of participants. Due to the anonymity that blockchain technology guarantees, it is difficult to implement.

Where is ERC-20 used?

Basically, startups use classic cryptocurrencies to finance developments. Investors can participate in the ICO or buy the coin after listing. The functionality of the asset depends on the purpose of the native platform. The more options, the higher the demand for the coin and the better the prospects for long-term price growth. Platforms using the DAO governance model typically add voting capabilities for all holders.

ERC-20 for stablecoins

Ethereum development

Use BlockchainXTech for easy Ethereum token creation—define details, select standards, code smart contract, deploy, and interact effortlessly.

Ethereum functions as an ecosystem that houses various blockchain applications. Think of it as an operating system that enables a customizable environment for application developers.

The sole distinction is that Ethereum fosters a high degree of autonomy, security, and immutability and makes use of blockchain technology.Blockchain applications use smart contracts to automate functionality and provide autonomy.

Having said that, these apps frequently provide tokens that are intended to grant users access to more features or benefits. These tokens sometimes let users get a cut of the app’s profits.Some are used to facilitate trading on Ethereum-based markets. Depending on the developer’s design decisions, tokens offer multiple use cases.

Another thing you need to know about tokens is that they are not held by accounts. There are tokens in contracts, which function as decentralized databases that map tokens to the appropriate Ethereum development address. Furthermore, it is the token contract that governs and specifies the rules that apply to a given token. With this, developers define the name, symbol, divisibility, and other important token identifiers.

Thus, the transfer of ownership of the tokens only occurs when the current owner sends a request to the contract directing it to allocate part of the balance to another Ethereum address. To record this transfer on the blockchain, the owner must pay a gas fee in ETH.

Now that you understand what a token is, what are ERC-20 tokens?

WHAT IS AN ERC-20 TOKEN?

Ethereum’s core developers concluded that it was not viable to promote a Wild West ecosystem where developers can create different variants of tokens. Instead, they introduced token standards that govern programming on Ethereum and offer high compatibility.

Considered the most popular token specification on the Ethereum blockchain, ERC-20 or Ethereum Request for Comments-20 was released in 2015 and has since enabled standards for creating digital assets that can seamlessly interact. To enable their infrastructure to receive, store, exchange, and send ERC20 token development, wallets and other services that are compatible with the standard use this protocol.

HOW TO RECEIVE AN ERC-20 TOKEN

Most likely, you have found an interesting Ethereum project and want to receive its native ERC-20 token. Should this sum up your current circumstances, you’re in the proper location.

The first thing you need to know is that all Ethereum addresses support ERC-20 tokens. While this is a given, it is the wallet provider’s prerogative to provide permission to access the ERC-20 token balance. In other words, some wallet providers support ETH addresses but may prevent you from seeing the ERC-20 tokens associated with the address.

This is why it is advisable to research the compatibility of wallets in advance. Make sure your wallet not only supports ERC-20 tokens, but also lists the specific token you intend to receive, especially if you plan to receive airdrops. In most cases, airdropped tokens are obscure digital assets that have not yet been listed on exchanges. If this is the case, it is unlikely that exchange wallet addresses will support these tokens.

MyEtherWallet (MEW) and MetaMask are the suggested wallets for ERC-20 tokens.Whatever the ERC-20 token, you can be sure that they can be accessed through these two wallets.

Before opening an account with either of these two ETH wallets, it is important to note that they are self-care wallets. Consequently, they will store your private keys on their devices and expect you to write down and store your seed phrase. A seed phrase is a list of 12 random words that you must enter whenever you lose access to your wallet or forget your password.

It’s simple and straightforward to create an account on MetaMask and MEW. However, for this guide, we will stick to the MetaMask option.

METAMASK: HOW TO CREATE AN ETH ADDRESS

Visit https://metamask.io/ and find the extension compatible with your browser.

Click and install the appropriate extension.

Once downloaded and installed, click the extension icon and follow the instructions to create and confirm your password.

Then accept the terms of use and greenlight the extension to reveal your seed phrase. It is best to keep several copies of these code words in safe places. You have successfully registered your account once you have backed up your seed phrase.

To view your ETH or ERC-20 address, navigate to and select the Deposit Ether Directly tab . Then click View Account to see and copy your address. You can now paste the address into airdrop portals that request an ERC-20 address to receive free tokens.

HOW TO VIEW ERC-20 TOKENS ON METAMASK

So now that you’ve received airdropped ERC-20 tokens, how do you view them? This is also quite simple if you follow the instructions below.

If you can’t find the token when you click the Assets tab , you may need to add the token manually.

To broaden the search, click the Add Token tab and choose Custom Token.

You must enter the token address in the appropriate field. Most of the time, the token symbol and decimal fields are auto-populated. Otherwise, you may need to locate the token project documentation to access the details. On Ethereum blockchain explorers such as Etherscan or Ethplorer, you can look up the token contract address. Better yet, you can ask the sender directly for the token address. Airdrops that conceal the addresses of token contracts should be avoided.

After filling in all the fields, click Next and select Add token to confirm.

METAMASK: HOW TO VIEW AND RECEIVE NFT TOKENS

Due to the explosion of airdrops for ERC-721 standard tokens or what are commonly called non-fungible tokens (NFTs), we decided to detail some of the processes involved in receiving and viewing them in your wallet.

First, you need to access your ETH address as shown above. Collectibles are not currently visible on the web version of MetaMask, so once the transaction is confirmed, it is advised to view the NFT on the mobile app.

If the NFT is not visible in the collectibles section, click Add Collectibles and enter the collectible ID and address in the appropriate field. Once this is done, the NFT should appear in the Collectible tab .

CONCLUSION

The way we think about a secure exchange of funds and information has been altered by blockchain technology.

This article focuses on the newly identified ERC20 batchOverflow vulnerability, the mistakes made during development that led to the creation of susceptible ERC20 token development , and the steps you should take to prevent making the same mistakes again.

ERC20 token vulnerability

An occurrence that was subsequently identified as the batchOverflow exploit occurred in April 2018. Vulnerable ERC20 contracts of ERC coins like BeautyChain (BEC) and MeshBox (MESH) were used in the exploit to create an unreasonable amount of tokens out of thin air.

Shortly following the discovery of the batchOverflow issue, PeckShield, a security firm, discovered many vulnerabilities in various Ethereum coins. Among the coins on the impacted list are:

Aurora Dao (AURA)

BeautyChain (BEC)

UG Token (UGT)

Smart Billions (SMART)

FirstCoin (FRST)

GG Token (GG)

CNY Token (CNY)

CNYTokenPlus (CNYt+)

UselessEthereumToken (UET)

Hexagon (HXG)

Education (EDU)

Smart Mesh (SMT)

MTC

SCA

These flaws were found not long after the batchOverflow attack was used. Researchers looked into questionable transactions left by attackers to locate them.

The primary indicator of questionable transactions was an abnormally high transfer rate, which occasionally exceeded the total supply of a token. A number of significant exchanges have fully stopped accepting deposits and withdrawals of ERC20 tokens in order to stop speculation. These conversations were:

OKEx

Poloniex

Changelly

Huobi Pro

Two main problems with ERC20 tokens

Researchers found multiple attacks and gave each one a distinct name while searching for vulnerabilities in ERC20 tokens. Actually, though, there are just two primary issues with all of these tokens:

Overflow vulnerabilities

Unprotected functions

Let’s take a closer look at each of these problems.

Overflow vulnerabilities

Exploiting integer overflow or underflow, a flaw in the ERC20 token standard, is the foundation of overflow vulnerabilities. When the outcome of a mathematical operation falls outside the range that a variable may represent, this issue arises.

When subtracting anything from zero in the context of Ethereum smart contracts, the result is a very big value. The outcome of adding two huge values will be close to zero and will wrap around.

In this instance, line 206 has the susceptible code. This line’s addition is not properly checked for overflow. Large values for _value and _feeSmart can be set to cause their sum to overflow, resulting in a value that is lower than the balance of the account and passing the condition, adding absurdly large values to the balance of the set accounts.

Unprotected function vulnerability

Unprotected functions are the second category of ERC20 token security issues. This type of ERC20 vulnerability only appears when a developer neglects to include the necessary modifier that limits function access. This means that certain essential core features may be freely called by any arbitrary user.

For instance, it’s standard procedure when creating Ethereum smart contracts to restrict access to particular features to a single account. Usually, that account is referred to as the owner.

And the AURA token experienced precisely this. The function that sets the owner isn’t restricted by an ownerOnly modification, even though the functions inside the contract are. Consequently, anybody can use the setOwner function to select a random owner by calling the contract. Fortunately, at this point the owner account can do nothing more than a regular user, so this issue is left safely unpatched.

How to avoid writing vulnerable code

As you can see, these ERC20 functionality vulnerabilities are typically the result of unintentional code errors. Additionally, there are still susceptible contracts on the Ethereum network despite the fact that these errors are well recognised and simple to prevent.

Is there any way to keep from adding to the pile? Can you, when working with create ERC20 token , avoid writing code that is vulnerable? Of course you can, and of course it is doable. We provide the following advice to assist you guarantee a high degree of code safety:

1. To prevent anything from being left exposed, clearly indicate visibility in functions and state variables.

2. Use libraries like OpenZeppelin’s SafeMath to stop overflows and underflows.

3. Watch out while dividing integers by rounding. Because of the constant rounding down, 5/2 equals 2, not 2.5.

4. To reduce gas usage and prevent denial of service assaults, allow users to pull tokens (in bonuses, games, airdrops, and so forth) as opposed to pushing them.

Utilize the most recent Solidity constructs: * Make appropriate use of require and assert so that an automated analyzer can officially verify your code.

Use keccak256 in place of sha3 and selfdestruct in place of suicide.

Create a test contract using Ropsten, a public testnet. Establish a bug bounty programme and allow your contracts to be tested by the community.

Obtain an official audit of your contract’s security.

You may increase the security of your code and avoid writing susceptible code by following these simple steps.

Conclusion

The world of cryptocurrencies can seem overwhelming to the average investor, and especially those without technical knowledge of blockchain and smart contracts.

However, the possibilities of many new digital currencies have attracted all types of investors, including those who may have never thought about investing in cryptocurrencies or tokens.

Although it is possible for investors without basic knowledge of cryptocurrencies to be successful in the crypto market, having a basic understanding of the general characteristics of many of today’s digital currencies is helpful for investors to make safer and sounder financial decisions. One of the predominant concepts in this environment, and one that is especially relevant to smart contracts and smart property, is the popular ERC20 token development standard.

ERC-20 is a scripting standard used within the Ethereum blockchain. This technical standard dictates a series of rules and actions that an Ethereum token or smart contract must follow and the steps for its implementation. You could think of ERC-20 as a set of basic guidelines and functions that any new token created on the Ethereum network must adhere to.

Prevalence and importance of the ERC-20

ERC stands for “Ethereum Request for Comment”, where the concept “request for comments” is a similar one devised by the Internet Engineering Working Group as a means of sending essential technical notes and requirements to a group. of developers and users.

The ERC-20 standard has been vital to the creation of new tokens in the cryptocurrency world for some time. Its popularity increased with ICOs and crowdfunding companies. Currently, tens of thousands of new tokens have been issued and operate under the ERC-20.

While many ERC-20 smart contracts are used to execute routines and functions in the digital space, there are also many that have been used to create non-fungible tokens (NFTs) in order to promote an initial coin offering (ICO). An ICO is the equivalent of an initial public offering (IPO) on the stock market, but with cryptocurrencies or tokens. A crypto company looking to raise money to create a cryptocurrency, decentralized application, or service can start an ICO to collect funds from investors and early adopters.

According to a report from Yahoo! News, in 2017 ERC-20 tokens were responsible for much of the rise in the ICO market, with many successful cryptocurrencies created under the ERC-20 protocol. For example, EOS remains a popular ERC-20-based token that allowed the platform to raise over $185 million during the first five days of its ICO. Multiple ICOs with tokens created using the ERC20 token have managed to raise several million dollars.

History of the ERC-20

In 2015, ERC-20 was created, a standard developed by the Ethereum community, which was officially recognized in September 2017. To create a standard of this type, a developer or group of developers must submit what is known as an Ethereum Improvement Proposal (EIP) where the new functionality is explained along with its specific protocols and standards. The proposal goes to a committee that reviews, approves, amends and finalizes that EIP, which would then become an ERC.

Smart contracts and other features within Ethereum are required to comply with all approved standards. Although the Create ERC20 token is perhaps the most important and best known of all ERCs, it is certainly not the only one that exists.

Contents of the ERC-20 standard

The ERC-20 contains several functions that a token in compliance with the established rules must be able to implement.

TotalSupply — Information about the total supply of tokens.

BalanceOf — owner’s account balance.

Transfer — Carry out the transfer of a certain quantity of tokens to a given address.

TransferFrom — Executes transfers of a specific number of tokens from a specific address

Approve — Allows a spender to withdraw a specified amount of tokens from a specific account

Allowance — Returns a given amount of tokens from a spender to the owner

Today, people can trade ERC-20 tokens in P2P transactions or through exchange platforms like Coinbase.

Problems and alternatives

Undoubtedly, ERC-20 has been widely accepted as we have seen with the appearance of new tokens under this standard, but there are many developers in the community who claim that ERC-20 is limited and has more than one flaw. In response, shortly after ERC-20 was implemented, several alternative standards began to appear, including ERC-223, which aims to solve the ERC-20’s approval and transfer problems.

Until now, most crypto coins were created on the Ethereum blockchain . This also makes it compatible with ERC20 tokens as a standard.

What is an ERC20 Wallet?

For your knowledge, the term “ERC20” refers to Ethereum (ETH), a cryptocurrency. In this instance, the Ethereum blockchain network’s technical standard for creating and utilizing tokens is established by this ERC20 token development.

The standard is distinguished from others by the number 20, which serves as a distinctive ID number.

This ERC20 token standardized functionality such that any tokens that utilize this framework are able to access all ERC-20-compatible services, such as Metamask.

Because the ERC20 token standard fixes compatibility issues, this is also highly helpful for developers who want to construct applications on the Ethereum network.

The ERC20 standard is used by a number of Ethereum blockchain projects to build alternative crypto assets, such as the stablecoins Rupiah Token (IDRT), DAI (DAI), and Binance Coin (BNB).

Many well-known DApps, like Compound (COMP), AAVE (AAVE), and Uniswap (UNI), use ERC20 because of the flexibility it provides for token transactions on their platforms.

What are the Advantages and Disadvantages of ERC20 Tokens?

Below are some of the advantages and disadvantages of ERC20 Wallet Tokens that you need to know.

1. Advantages of ERC20 Tokens

Easy to use

This ERC20 wallet token is very easy to use because the Ethereum smart contract is written in the Solidity programming language which is almost the same as JavaScript.

In addition, developers can also code smart contracts with the Vyper programming language, which is similar to Python.

Flexible for customization

The advantages of this one depend on business logic and user interaction.

These ERC20 tokens typically allow for the customization of a number of features.

For example, automatic refilling of gas, freezing and unfreezing of tokens, adding a central mint to modify circulating tokens, and so on.

A defined roadmap for developers

The ERC20 development standard gives developers a precise blueprint and allows them to create new tokens relatively easily rather than having to build everything from scratch.

Token standardization

For information, Ethereum also provides token specifications which include rules regarding interaction between different tokens, including rules for purchasing tokens.

Through universal standards, each user can later transfer new tokens to the wallet and exchange them at once.

Liquidity

If Ethereum projects are active and interacting with each other then it will bring more projects and users to the network.

Widely accepted

ERC20 and its tokens are easily recognisable on the majority of exchanges and wallets thanks to the protocol’s universality and adaptability to a wide range of exchanges.

Besides, its functionality also makes this token very good for trading platforms/apps.

Removed fake tokens

Here, all transactions will comply with approval and the total token supply will streamline the audit process and ensure there are no duplicate tokens in circulation.

In this case, ERC-20 also has the opportunity to become and maintain itself as one of the most popular standards used by many developers throughout the world.

2. Lack of ERC20 Tokens

Even though it has advantages, this token is not free from shortcomings/weaknesses. Here are some of them.

Unstable

Through ETH 2.0, the Ethereum blockchain has switched from a Proof of Work (PoW) system to a Proof of Stake (PoS) approach for consensus.

The goal of ETH 2.0 is to overcome all scalability problems, but many changes have occurred and this also takes time.

Besides, this project is not finished yet. System instability is occurring at this time. In this case, some tokens are likely to be at risk of being destroyed when used as payment for smart contracts. Due to this, ERC-233 was born to avoid.

Gas costs are expensive

It is important to note, this token relies heavily on the Ethereum blockchain to complete each transaction and there are also gas fees. When traffic is heavy on the blockchain, gas fees will increase.

Transferring bugs

There are 2 types of accounts on Ethereum: one is an externally held account controlled by a private key, while the other is a contract account held by contract code.

As for tokens sent from one EOA account to another using the transfer function, it doesn’t cause any problems. However, transferring funds to the contract account would result in a bug resulting in a loss of up to $1 million.

Slow transaction

In essence, transactions and the Ethereum blockchain are intertwined. Well, when the network is congested, all transfers on ERC20 will slow down.

Although “Sharding” is expected to solve the problem of slow transactions, it has not been fully adopted on the Ethereum blockchain because it is still in its early stages.

Transactions cannot be changed

When users send ERC20 tokens to the wrong address, there is no way available to return the funds.

As a consequence, the token will remain forever trapped in the contract. This also holds true for tokens that hackers have stolen.

Low entry point

According to critics, it is easy for anyone to create their own tokens without a clear purpose.

This makes it easy for developers to exploit policies to develop Initial Coin Offerings (ICOs) and fake tokens with useful projects.

Examples of Crypto Using ERC20

The token standard on the Ethereum blockchain is widely used by crypto assets and in this case, ERC20 tokens are the most popular.Here are some instances of ERC20-based cryptos.

ChainLink (LINK)

ChainLink (LINK) Is an ERC-677 token that inherits the functionality of the ERC20 token standard.

Maker (MKR)

Is a utility token based on the Decentralized Autonomous Organization (DAO) that issues stablecoins on the Ethereum blockchain, namely DAI.

Tether (USDT)

Tether (USDT) This is a stablecoin that runs on the ERC-20 protocol so the deposit address is an ETH address. Meanwhile, deposits and withdrawals will be made on the ETH network.

Recommended ERC20 Wallet

So, what ERC20 wallet is recommended for users to store these ERC20 tokens? In this case, users can use Ethereum (ETH) Wallet or Ethereum (ETH) Wallet, namely Trust Wallet.

Quoting the official page, this main mobile Ethereum wallet works with any ERC20, BEP 2 and ERC 721 tokens. In fact, Trust Wallet also supports the main blockchains in the Ethereum ecosystem — Ethereum, Ethereum Classic , and Callisto.

To date, there are more than 20,000 tokens built on Ethereum that can be accessed via the Trust Wallet application. On the other hand, Trust Wallet also provides users with a unified wallet address that can be used to manage Ethereum and all ERC20 tokens.

This means you can use the same address to participate in multiple airdrops and to send and receive Ethereum. Trust Wallet is intuitive and easy to understand and is packed with many useful features.

Trust Wallet also prioritizes user security and anonymity. The main principles are as follows:

Local key storage on the user’s device is ensured via client-based infrastructure.

Users’ digital assets are safeguarded with bank-grade protection against potential dangers.

An application-level authentication system prevents unauthorized access via unlocked devices.

Many people have heard about ERC-20 tokens, but few know what exactly they are. ERC stands for Ethereum Request for Comment, and 20 is an arbitrary number assigned to a proposal.

ERC-20 Basics

The native currency of the Ethereum blockchain is Ether (ETH), but the erc20 token generator also serves as coins on the Ethereum network. The blockchain processes transactions with them, and smart contracts run on the Ethereum virtual machine.

Ethereum.org describes the ICO mechanism as follows:

The buyer pays the smart contract (the money goes to the robot).

The robot redirects them to the contract owner.

The robot transfers tokens belonging to the ICO creator to the buyer.

Remember that these tokens are not independent. They run on the Ethereum blockchain and depend on the computing power of its network.

Risks of smart contracts

Although smart contracts are very efficient, they come with certain risks. For example, a smart contract cannot be changed after the developers launch an ICO. If the contract contains bugs or vulnerabilities, you could lose your money or tokens (or both).

Such troubles often happen in the cryptocurrency world. The most notable was the $55 million DAO hack. To cope with it, the developers carried out a hard fork of the Ethereum network (this is how Ethereum Classic appeared).

Why do we need the ERC-20 standard?

Before the advent of the ERC20 development standard, there were many interoperability issues between various Ethereum-based tokens. Each token had its type of smart contract.

In other words, to work with the new token on exchanges and wallets, it was necessary to write individual code. Maintaining an ever-increasing number of tokens was becoming too time-consuming and problematic.

As a result, a single protocol was developed for all tokens, known as ERC-20.

The ERC-20 token standard has six required parameters for each smart contract and three additional (but recommended!) ones. For example, additional ones include the allowed number of decimal places. By comparison, Bitcoin supports eight decimal places, a symbol (usually a 3–4 digit code) and a name.

Six mandatory parameters determine the number and transfer of tokens. The first two are used to set the initial distribution:

The total supply function determines the total number of tokens. After reaching the maximum, the smart contract stops issuing them.

The balance0f function assigns a primary number of tokens to any address (usually the address of ICO owners).

To distribute between users and transfer from one user to another, two transfer methods are needed. They are extremely important for the secondary market:

The transfer function transfers tokens from the primary address to individual users who purchased them during the ICO.

The transferFrom function is used to transfer tokens from one user to another.

Two more functions are needed to check the previous two:

The approve function checks whether the smart contract still has tokens.

The allowance function ensures that a certain address has enough tokens to send them to another address.

These six simple steps have enabled wallet developers and exchanges to create a single code base that can interoperate with any ERC-20 contract.

Using ERC-20 tokens

ERC-20 tokens have applications in many areas. For example, they can act as project shares, asset ownership certificates, loyalty points or pure cryptocurrencies. In addition, they can perform multiple roles simultaneously.

Creation of ERC-20 tokens

All tokens are created by smart contracts. These contracts conduct transactions and account for each owner’s balance. CoinCreator allows anyone to create their own ERC-20 tokens!

During the ICO, each participant receives tokens at an agreed rate by sending cryptocurrency and data (primarily an email address) to the smart contract.

Problems with ERC-20 tokens

The ERC-20 protocol is not always sufficient for token purposes. This is only a basis for creating Ethereum tokens, which does not guarantee their usefulness, value or performance.

The token can be complemented while maintaining compatibility with the ERC-20 standard. One of the downsides of ERC-20 is that it makes token deployment trivial on a technical level. As a result, many teams that were unable to conduct an ICO on their own did so.

The huge number (47454+) results in an abundance of very similar tokens, making the selection process more difficult for potential investors.

Another problem is that some projects implement the basic principles of the standard in very strange ways, which creates additional confusion when determining the specifics of how their tokens work. For example, sometimes tokens are sent to smart contracts in other ICOs. If the contract functionality does not provide for this, the tokens are lost. By the end of 2017, more than $3 million had been lost this way.

TOP 20 cryptocurrencies issued on the ERC-20 standard

The cryptocurrency community is represented by various groups of users who prefer specific cryptocurrencies or ecosystems.

Among them, some firmly believe that Ethereum will soon overtake the market leaders both in exchange rate value and in total capitalization.

Confidence is partly supported by the fact that Ethereum has ready-made solutions for future scaling, as well as a partial move away from PoW algorithms, which makes the ecosystem more environmentally friendly in terms of energy costs for mining, compared to Bitcoin.

The key point is Ethereum’s support for creating separate applications and new networks on its own, which makes it more promising than current alternatives. Given that Ethereum has been around for a little over 4 years, applications developed within its ecosystem become successful more often than others. The analysis showed that out of the 100 best cryptocurrencies in their entire history, 46 were implemented on Ethereum.

EOS (EOS)

Tron (TRX)

VeChain Thor (VET and THOR)

OmiseGo (OMG)

ICON (ICX)

Popular (PPT)

Binance Coin (BNB)

RChain (RHOC)

Status (SNT)

Maker (MKR)

DigixDAO (DGD and DGX)

Aeternity (AE)

Waltonchain (WTC)

August (REP)

Veritaseum (VERI)

0x (ZRX)

Revain (R)

Kucoin Shares (KCS)

Zilliqa (ZIL)

Basic Attention Token (BAT)

Let’s sum it up

The easiest way to create a token is to go to Token Factory, which has a clear interface.

As we mentioned at the beginning of this article, wETH tokens were created for a rather specific purpose. The disadvantages of Mist are its size and the need for synchronization with the blockchain, which sometimes causes problems. That is, the parties to the transaction do not interact with each other directly, but with the erc20 token development smart contract.

Ethereum is not just a cryptocurrency, but an environment, an ecosystem. Each of its users has the right to use the blockchain provided by Ether to create their own applications and projects using smart contracts. This system can be described in a simplified way by comparing the airwaves with the Internet, and distributed applications in it with websites. Moreover, the sites belong not to one owner, but to many — those who purchased the “site” tokens during the ICO process in exchange for ETH coins. That is, a token is the currency of a specific project that circulates on the Ether blockchain.

Ethereum Token

The EOS platform allows you to create dApps, quickly carry out transactions in parallel with others, it is designed for scaling and working with large projects. By combining all the previously listed functions, we get a full-fledged ERC-20 contract. But, as we discussed, smart contracts are not everything. We need to obtain data and information on contract renewal. We have a library for this in the SDK that replaces The Graph, and in this library everything is also written in Kotlin. The creators of the ChainLink project

decided to raise funds for the development of the project by selling tokens as part of the ICO.

Wrapped Ether aims to solve this problem and you may have come across this token before. Next, we will explain why it has become a useful tool for investors and owners in many projects and DApps. ERC20 also facilitates the management of tokens of the same standard for decentralized applications such as Uniswap, AAVE, Sushiswap, 1inch, etc. This table contains a list of holders and the corresponding balance of their tokens.

Although the idea of ​​decentralization sounds compelling, people are not willing to pay large amounts per transaction for its cost. This raises the question of how much people actually care about decentralization. Solana is more centralized than Ethereum, which is why it can have such fast transaction speeds and low fees. We’ve seen a problem with this where the network is down due to having a more centralized point of failure.

The value of the token lies in the fact that the user will receive a guaranteed quality product as a result, or otherwise receive the money paid. Another implemented solution is the tracking function along supply chains, based on requests in manual mode. The blockchain stores all this data, and when requested, provides the necessary information in the database. Today renamed VeChain Thor (from VEN to VET), the platform has also begun to support commercial dApps through the Thor utility token.

Here msg.sender is the investor’s address, and restricted is the address of the token wallet for the founders.

A situation that further encourages decentralized platforms and keeps all power in the hands of users.

Built-in atomic (instant) exchanger with cashback.

However, in a token that is issued during a sale, the problem can be solved.

Solana is more centralized than Ethereum, which is why it can have such fast transaction speeds and low fees.

Ultimately, ChainLink needed to provide solutions for Ethereum smart contracts, so the tokens were based on the most popular ERC20 standard. The ChainLink program has created 1 billion LINK utility tokens, of which 350 million (35%) have been allocated for public sale. Over time, blockchain is increasingly penetrating our lives, and there is a need to understand its basic technologies, including the operation of decentralized applications. Most dApps are currently created on Ethereum, whose capabilities are much more flexible than issuing the usual ERC20 development service tokens. The TransferFrom function allows smart contracts to carry out transfers with parameters specified by the wallet owner.

NFT20 understands that liquidity is a big part of any dex. $500 per day will be distributed as rewards to liquidity providers for liquidity pools on NFT20. As of now, the ETH-MUSE pool will receive the largest daily $MUSE supply of $250MUSE.

Erc20 Tokens Transmit Information From Transaction Hash

The main token utility $MUSE serves as the governance token for the NFT20 dex. Requirements for approval of a crop growing project. $MUSE is an NFT20 governance token that can be earned by providing liquidity to various NFT20 token pairs.

This is the easiest way to get Ethereum into your Exodus wallet. Once the exchange is completed and your Ethereum has been deposited, you can begin managing and/or exchanging assets running on Ethereum. But in the case of ERC721, which is a non-fungible token, each token will have a distinctive characteristic that makes it unique from any other ERC721 token. ERC721 is mainly known for its successful use in the popular game CryptoKitties. But there are many other useful uses for ERC721 contracts. Let us immediately note that it is strictly not recommended to search for an exchange service yourself through a search engine.

If you decide to start experimenting with WETH, we recommend purchasing it with ETH or other tokens, as it is easier and more convenient than interacting with smart contracts for wrapping. In addition, there is another problem — lost coins inside smart contracts. This happens when a contract is used that is not intended for operations with sent tokens. Its developer proposes to solve it using the new ERC-223 standard. The standard is based on ether smart contracts, implemented for the first time in the blockchain of this cryptocurrency.

What Lies Behind Erc Tokens

For example, Bitcoin or Ethereum are fungible tokens, euros or dollars are fungible money, since each token or each euro or dollar has the same value. The antonym of a fungible token is a non-fungible token, which, on the contrary, has its own, unit value as a unique digital work. All content provided by the site, hyperlinks, associated applications, forums, blogs, social networks and other information is taken from third party sources and is intended for informational purposes only. We make no guarantees regarding our content, including, but not limited to, its accuracy or currency.

I calculated the percentage of tokens for the founders and bounty at the end of the sale. Previously, totalSupply — the number of issued tokens corresponded to the number of purchased ones. And we need to count the percentage of those purchased, otherwise the price of the token will be eroded.

What Happens If My NF Value Is More Than 100 Tokens?

Their combination is necessary to disclose the requirements of the parties aimed at the correct fulfillment of obligations and the formation of a procedure for the turnover of assets. A typical fiat stablecoin issuer holds a certain amount of euros, dollars, or other currencies in reserve. Then it issues an equivalent number of tokens. So, for example, if you have a reserve of dollars, you can issue dollar stablecoins. Essentially, you give the smart contract the authority to transfer funds on your behalf. For example, as part of a subscription to certain services, so as not to enter data personally each time.

Provides the ability to avoid accidentally losing tokens inside contracts that are not designed to handle sent tokens. Now you need to wait for the transaction to be confirmed on the blockchain. The waiting time will depend on the network congestion. If you’re in a hurry, you can speed up the process (for example, pay higher fees) to confirm the transaction faster. Among these restrictions is the inability to directly exchange ether for such tokens or vice versa.

Although the project is still young, thanks to the efforts of the team it has already managed to overtake many trading platforms. The objective of the project is to provide reliable reviews of products, services and services, bypassing advertising from its customers. Moreover, these reviews are checked by highly intelligent systems that conduct analysis and exclude low-quality texts, and the publications themselves cannot be deleted. Users who publish them will receive payment in R tokens, and reviews will be saved in the RSS storage. In addition, goods and services can be purchased at a constant price in RVN currency.

Comparison of Ethereum Blockchain Token Standards: Erc

This token is backed by the US dollar, and, in fact, is a stablecoin (a digital asset with a stable price). In ERC-223, this error has been corrected — here you can transfer tokens to smart contracts and wallets with one function. In addition, with ERC-223 tokens, unlike ERC-20, a transfer requires one operation rather than two, which means half the gas required to pay for it. So, Ethereum is a decentralized platform on which smart contracts written in the Solidity programming language can run. It can also run hundreds of decentralized applications.

After this, the funds are credited to the recipient’s wallet balance. Each ERC-721 token is unique and can be used for collecting or declaring ownership. You need to communicate with the smart contract that manages ERC-721 tokens differently — not using numbers, but specifying the 256-bit identifier of each token. Tokens can only be moved one at a time and, logically, tokens cannot be divided into parts. This token is used as a currency when paying for advertising on specialized platforms that can be found through the Brave browser. Its function is also to control the visibility of advertising in accordance with thematic queries and user behavioral factors collected by this browser.

In this case, the commission will still have to be paid, since this is the only way to ensure that the transaction is included in the block. And if there is no ether, then you won’t be able to work with ERC-20 tokens. And one of its important components was the ERC-20 framework, which is used to create erc20, these are new tokens or tokens that can interact with Ethereum. What’s interesting is that this adaptive mechanism inspired Bitcoin developers to create a similar standard — BEP-2. ERC20 is the Ethereum protocol, making it possible to generate tokens on the Ethereum blockchain.

Popular Cryptocurrencies

New data appears so quickly that indexers cannot keep up with it. Because of this, users may submit transactions and not see their results in web services. But this is not “the blockchain is broken” or “the tokens were stolen” — it’s just that the indexer has fallen behind the blockchain. To transfer ether, you need to select “transfer ether and tokens” in the menu. Choose to log in via MetaMask, click “Connect to MetaMask”, in the window that opens, enter your password and click “login” and at the bottom of the “Connect” window — “login”.

Among the usual offline exchange offices in every city, you cannot find those that will agree to exchange Tether ERC20 for cash. This is explained by the fact that they are associated with banks and official currencies, but not with digital assets. By process of elimination, we come to the logical conclusion that for exchanging Tether ERC20 for cash, exchangers are the only rational, convenient and safe option.

This way, you will be able to pay more attention to selecting exchange conditions, getting the opportunity to buy Tether at the best price. These six simple steps have enabled wallet developers and exchanges to create a single code base that can interoperate with any ERC-20 contract. The approve function checks whether the smart contract still has tokens. It is a current industry standard and is used by thousands of different cryptocurrency projects. Here msg.sender is the investor’s address, and restricted is the address of the token wallet for the founders.

It is distinguished by its support by hard real currency (in this case, the American dollar). This makes stablecoin a convenient tool for savings and mutual settlements. With its help, it is possible to conduct financial transactions, erasing state borders and difficulties. A series of unique tokens called CryptoPunks is considered one of the most significant in the NFT hype. It was created back in 2017, and now the volume of token trading continues to break all records in the cryptosphere. Here are some of the most significant sudden wealth stories for investors who know how to wait.

Erc20: Description of the Standard, Features of Erc Tokens, Supported Wallets

As a result, Ethereum Request for Comments 20, also known as the ERC-20 development token standard, was invented. By using tokens to perform specific functions in a smart contract, you make the process simpler and clearer. In addition, tokens also play into the overall value of ETH. Each step in a smart contract is a transaction or a set of manipulations that has its own price, expressed in gas. Ether is the currency that powers everything on Ethereum.