All About ERC-20 Tokens

All About ERC-20

There’s been a lot of talk in the crypto space regarding ERC-20 tokens, but what exactly are they? In this article, we will be discussing the basics of ERC-20 tokens: What they are, how they are used and which Killer Whale products you can use to take advantage of these tokens!

What are ERC-20 Tokens?

Simply put, ERC-20 tokens are the most significant tokens on the Ethereum Blockchain. There are currently over 200,000 ERC-20 tokens running on Ethereum right now. ERC-20 is the technical standard for implementing tokens and deploying smart contracts on the Ethereum blockchain. ERC-20 also provides a set of rules which all other tokens on the Ethereum blockchain must follow.

ERC-20 tokens are valued blockchain assets which can be sent and received between network participants, in the same fashion as coins such as any other cryptocurrency. the primary difference is that ERC-20 tokens exist on the Ethereum blockchain, rather than residing on their own blockchain. ERC-tokens are issued on the Ethereum network.

Common ERC-20 Rules

ERC-20 rules define things such as the total supply of the token, how tokens can be transferred, the data that can be access regarding a token, and how tokens can be transferred. These are examples of some of the six basic functions of ERC-20 tokens. Due to the ease of ERC-20 token deployment, developers can create tokens within the Ethereum blockchain for all types of utilities. Furthermore, developers can use ERC-20 tokens to test their performance on a small scale, before releasing them on their own blockchain.

Many well-known coins – such as Binance Coin (BNB) – started on the Ethereum blockchain as ERC-20 tokens, before eventually moving on to their own native blockchains. Because so many coins started out as ERC-20 tokens, many blockchains outside of the Ethereum blockchain are engineered with ERC-20 compatibility or designed with similar functionality to the ERC-20 guidelines. These similar protocols include Algorand ASA, Solana SPL and TRON TRC-20.

Common Uses for ERC-20 Tokens

ERC-20 tokens are the basis for all smart contracts on the Ethereum blockchain. They can be used for liquidity pools, stablecoins, NFTs, utility tokens, and much more. Anyone can create an ERC-20 token for any conceivable reason one would need to create a cryptocurrency.

Which Killer Whale Products Take Advantage of ERC-20 Tokens?

Because ERC-20 tokens are so prevalent in the world of cryptocurrency, many killer whale products take advantage of their benefits! It is important to consider how much money is being poured into the Ethereum blockchain because of these ERC-20 tokens. You can take major advantage of these tokens by using Killer Whale Strategies such as Gain ETH , or our Killer Whale Large Cap Sector Strategy .

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