What are ERC20 tokens?
ERC20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens . ERC stands for Ethereum Request for Comment, and 20 is the number that was assigned to this request.
As the name implies, the native currency of Ethereum blockchain is ether (ETH). But ERC-20 tokens also act as coins on Ethereum. Ethereum is the heart and mind of ERC-20 tokens. Its blockchain processes their transactions, and its virtual machine runs their smart contracts. These tokens aren’t independent and reside on Ethereum’s blockchain, and depend on its distributed computing abilities.
ERC20 defines a common list of rules for Ethereum tokens to follow within the larger Ethereum ecosystem, allowing developers to accurately predict the interaction between tokens. These rules include how the tokens are transferred between addresses and how data within each token is accessed.
Here are some examples of ERC20 Tokens :
- Kyber Network
- Decision Token