What are ERC-20 Tokens?
ERC-20 tokens are tokens and cryptocurrencies created on the Ethereum network, meaning that Ethereum is the platform that hosts them.
ERC-20 tokens are incredibly popular and currently there are over 200,000 ERC-20 tokens on the Ethereum network! At one point ERC-20 tokens made up 85% market share of all cryptocurrencies.
Tokens are born using smart contracts, these smart contracts are also used to track the total number of tokens each user has and handle the buying and selling of each token.
The ERC20 framework provides a template for creators and developers to work from and saves them time.
When creating tokens, developers must be very careful as due to the immutable nature of smart contracts, when an ERC-20 token is created it can never be modified. If there is an accidental loophole or backdoor built in to these tokens, the developer will never be never be able to resolve this. This could mean that the token holders could have their tokens stolen.
The ERC part stands for Ethereum Request for Comments, this is the standard that creators must abide by when creating their tokens. The standard makes sure that all ERC-20 tokens interact with each other seamlessly. This also ensures that the tokens can interact with exchanges, decentralised exchanges and crypto wallets without faults or errors.
What are the Top 5 ERC-20 Tokens?
Tether is the original stable coin, it is designed to always be worth the equivalent of $1.00. Stablecoins like Tether are used by traders when they want to exit a position and wait to enter a trade at a better price.
Uniswap token is the native token of the decentralised exchange (DEX) of the same name. This DEX is revolutionary as it allows user to swap any Ethereum based ERC-20 token with any other ERC-20 token without the need to sign up to a traditional exchange.
Chainlink connects the outside world to the world of cryptocurrency. It is a decentralized oracle network that relays real world data and information to smart contracts on the blockchain.
Theta is a decentralised video streaming host. All users on the Theta network contribute bandwidth to make the video streaming improve for all other users. Users who contribute bandwidth
VeChain’s main goal is to promote the benefits of blockchain to traditional industries across the world. The company also provides hardware & software solutions for these companies so that they can transition to using the blockchain easily.
As you can see from the list above, Ethereum and ERC-20 tokens are clearly leading the way in terms of crypto adoption and innovation. The huge number of projects that have been developed using ERC-20 is unlikely to be surpassed at any time soon.
Check out this page if you are ready to invest in ERC-20 tokens today.