What Are ERC-20 Tokens? The Ethereum Token Standard

As mentioned earlier, there are different types of blockchain. Various icons can be attached to it depending on the category. In this article, we continue our study of the ERC-20 token standard and take a look at some of them.

What are ERC-20 tokens?

Simply put, ERC-20 tokens are the tokens used in the Ethereum chain. Ethereum is not just a blockchain like Bitcoin; It is a platform. This allows other codes to work with it. Also, dApps can be created based on this using smart contracts.

Over time, ETH became the second largest network, and when the popularity of the project became apparent, developers devised a way for different smart contracts to communicate with each other. As a result, they created ERC-20 tokens, which became the definitive standard, a set of rules that facilitate communication with contracts. Since the completion of the ERC-20 token standard, 500,000 tokens have been issued.

Thanks to the ERC-20 token standard, developers can create their own tokens on the Ethereum network. Many companies issued their own tokens because the network allows them to easily develop blockchain products instead of starting their own cryptocurrency. Some tokens, such as Uniswap's UNI, should remain ERC-20 tokens, while other cryptocurrencies, such as EOS or Tron, have since moved to their own block chains.

ERC-20 standard token. Features:

These standard characters have the following characteristics:

• Convertible . Each individual token is the same as the others, although the transaction history can be used to identify the tokens involved and differentiate between them.
• Mobile can be sent from one address to another.
• permanent stock . A certain number of tokens must be generated so that developers cannot release more tokens and increase the supply.

List of ERC-20 tokens

Let's take a look at the 10 most popular and backed Ethereum tokens that will be sorted by market capitalization starting with Ethereum. Here is your list of ERC-20 tokens.

Ethereum (ETH)

Ethereum is an open source distributed software platform based on blockchain technology. It has its own cryptocurrency called Ether (ETH) with a market capitalization of $156.1 billion. Ethereum is the main competitor to Bitcoin.

Cryptocurrency researcher and founder of Ethereum Vitalik Buterin first described Ethereum in 2013 with a proposal to add a programming language to Bitcoin for programming. The development of Ethereum was funded through online crowdsales, i.e. crowdfunding through the issuance of cryptocurrency tokens, and the project was launched on July 30, 2015.

As mentioned earlier, Ethereum allows developers to build decentralized applications. Miners generate Ether tokens and pay a fee to use them on the Ethereum network. However, Merge, a long-awaited update that promised to reduce Ethereum's massive power consumption, has pushed miners to other cryptocurrencies. The platform also supports smart contracts, which are a type of digital contract.

Shiba Inu (sheep)

Shiba Inu (SHIB) is the first popular dog coin with a market cap of $6.3 billion, replacing Dogecoin, one of the first funny meme coins. Unlike Dogecoin (DOGE), it does not run on its own blockchain; SHIB is an ERC-20 token that runs on top of Ethereum (ETH). The developers of the token transferred 50% of its liquid stock to Vitalik Buterin.

Currently, Shiba Inu (SHIB) is the only Mem cryptocurrency that has developed a “real” DeFi system that includes an NFT incubator and marketplace, a production unit, and a decentralized crypto exchange Shibaswap.

Bitcoin (WBTC) file

Encapsulated Bitcoin (WBTC), with a market capitalization of $4.7 billion, is a converted version of Bitcoin that can be used in the growing Ethereum network of decentralized applications.

The WBTC token was created using the Ethereum token standard ERC-20 to provide Bitcoin liquidity to the DeFi ecosystem. Bitcoin-only cryptocurrency users who were previously unable to access and use DeFi dApps built on the Ethereum protocol can benefit from increased market capitalization and increased trading volume for the Bitcoin community with WBTC Ethereum tokens. You can learn more about this token in one of our articles: What is Bitcoin WBTC and Other Coins Coins?

Uniswap (UNI)

UNI has a market capitalization of $4.2 billion. It is an Ethereum-based decentralized exchange token known as Uniswap. It is an administrative token, so its owners can participate in the platform's management decisions. Uniswap launched its token in September 2020.

The current supply (UNI) of Uniswap tokens is 1,000,000,000 UNI. All these UNI tokens will be available for four years. Four years later, when all these tokens are distributed, Uniswap will offer an annual inflation rate of 2% to maintain participation in the network. 60% of UNI's 1 billion token offer has been given to members of the Uniswap community (ETH addresses are actively traded on the Uniswap protocol). The remaining 40% will be distributed to team members, investors and advisors during the four-year plan.

Link

Chainlink's LINK token, which has a market capitalization of 3.3 billion, is ERC677, an extension of ERC20. Chainlink is Oracle's decentralized network. The external data providers that share the network are called Oracle. This oracle allows Chainlink smart contracts to receive accurate data from external (non-blockchain) sources, such as any type of API and various other types of external data.

LINK is an ERC-20 token used to provide and ensure the accuracy of this Oracle service on the ChainLink network. The token was only created in 2017 and provides accurate external data to the blockchain. Although Chainlink is an Ethereum (ETH) derivative, it is designed to work with any blockchain that has smart contract functionality.

Polygon ERC20 (MATICERC20)

MATIC is a popular ERC-20 token with a market capitalization of $1.6 billion. Polygon ERC20 token is an Ethereum-based alternative currency that powers the Polygon Network. Since the Ethereum blockchain processes a large number of transactions on a regular basis, it causes network congestion, resulting in slow performance and high transaction fees. Polygon aims to improve the user experience by providing a scalable Layer 2 (L2) solution for the Ethereum blockchain.

Through smart contracts, Ethereum can be converted into ERC20 polygons, providing a scalable Ethereum ecosystem. Polygon was originally launched in 2017 as Matic Networks. Uses side chain to improve scalability. In February 2021, the Matic Network was renamed Polygon and relaunched as a platform for building interconnected blockchain networks based on Ethereum.

Creator (MKR)

The market capitalization of the MKR token is currently $617.5 million. Maker Coin (MKR) is a cryptocurrency owned by the Maker Platform. It works with another coin on the same platform, Die, which is a decentralized stablecoin based on the Ethereum blockchain. Dai stablecoin was launched in December 2017.

Dai aims to solve the problems associated with the volatility of traditional cryptocurrencies, which prevents them from becoming the main means of payment. Maker coins act as governance tokens, guaranteeing their holders the right to vote on any important decisions related to the platform. These include risk management, repaying Dai loans or setting debt ratios. If a cryptocurrency user wants to borrow Dai, the manufacturer’s coin is used to pay the corresponding 1% annually.

Basic Attention Token (BAT)

The BAT token, which has a market value of $452.2 million, is linked to the fully functional Brave browser. It is a code designed to reward both users and advertisers. Users view ads and are paid accordingly, and creators are rewarded for getting users' attention. BAT is a means of getting attention, sometimes referred to as the "attention economy".

The BAT bonus feature is only available on the privacy-focused Brave web browser. This handy tool blocks third-party ads and trackers by default and has built-in integration with the popular Tor dark web browser. BAT is used to buy bold ad space and advice for content creators.

COMPACT (.COMP)

The $432.4 million COMP token launched “DeFi Summer” in May 2020 through its liquidity mining program, COMP Token. All users participating in this program are rewarded in the form of COMP Lending and Borrowing tokens.

Users can earn COMP by lending or lending cryptocurrency on the Composite Platform. This is because borrowing and lending cryptocurrency earns users COMP tokens which allow them to earn a higher percentage of APY COMP. With the right accounts, users are initially paid for loans.

Looping (LRC)

Loopring has a market capitalization of $405.5 million. The LRC cryptocurrency is a scalable Ethereum Layer-2 protocol that enables the creation of decentralized exchanges that compete with centralized exchanges in terms of performance. Loopring (LRC) was founded in 2017, and Loopring's Initial Coin Offering (ICO) was made in August 2017, raising $45 million. However, most of the money raised was returned to ICO participants due to tightening regulations in China. The rest was used by the Loopring Foundation, a non-profit organization based in Shanghai, to develop the protocol.

In December 2019, the protocol migrated from Loopring 2.0 to Loopring 3.0, resulting in a nearly 1,000-fold improvement in performance. That same month, it also partnered with Bitcoin to integrate Oracle. After trying to find third parties to build a DEX based on the protocol, Loopring launched its own decentralized exchange in February 2020. The non-custodial ring exchange relies on both an order book and automated market maker (AMM) trading and acts as a payment application.

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ERC-20 tokens are widely used, and as long as Ethereum is strong, they have every opportunity to grow. If anything, the biggest threat to them from the enemy comes in the new Ethereum benchmarks. Only the most innovative tokens can win the cryptocurrency race.

Where to buy ERC-20 tokens?

StealthEX is here to help you buy the most popular 20 ERC tokens. You can do this in person and without registering for the service. With over 600 different coins in our cryptocurrency collection, you can transfer from one wallet to another instantly and without hassle.

Just go to StealthEX and follow these simple steps.

1. Select the pair and the amount you want to exchange. For example, exchange BTC for ETH.
2. Click the "Start Exchange" button.
3. Specify the recipient's address for cryptocurrency conversion.
4. Transaction progress.
5. Get your crypto coins.

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Make sure to do your research before purchasing any cryptocurrency. The opinions and opinions expressed in this article are solely those of the author.

Tags: Crypto World ERC-20 ETH Ethereum Token
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