What exactly is ERC-20?

When it comes to some aspects, ERC-20 is analogous to Bitcoin, Litecoin, and any other cryptocurrency; ERC-20 tokens are blockchain-based assets having a monetary value that can be exchanged and received by anybody. However, the primary difference is that ERC-20 tokens are created on the Ethereum network, as opposed to being produced on their own blockchain.

ERC-20 and Ethereum

ERC-20 may be familiar to Ethereum followers. You may sell, purchase and even exchange tokens in the Ethereum blockchain ecosystem – ERC-20 tokens are among the most popular. 

As a matter of fact, ERC-20 is one of the most significant Ethereum-based tokens available. As a token form, it also represents a set of criteria for digital tokens. Smart contracts are implemented with this token and cover a set of rules that all Ethereum-based platforms must obey.

ERC-20 Simplified

In essence, ERC-20 is comparable to other cryptocurrencies such as Bitcoin, Ether, and others. However, you must realize that Ether and ERC-20 are not synonymous. IIn reality, Ether is the primary currency of the Ethereum network, whereas ERC-20 is a specification for a particular sort of token. As a result, people can utilize this standard to generate new ERC-20 tokens, each with a unique token name. Moreover, only Ethereum-based platforms will allow the use of ERC-20 tokens.

ERC-20 Standard Rules

ERC-20 rules and standards are put in place in the case where any smart contract chooses to use the token. The rules are rigid and a smart contract will need to follow them in order to be able to be identified as an ERC-20 token. 

Standards 

• allowance
• approve
• transferFrom
• transfer
• balanceOf
• totalSupply

Non-mandatory Standards

• Token Name
• Decimal (Max: 18)
• Symbol