What is an ERC20 Token?

[CryptoZenWorld]

ERC20 is a protocol standard that defines certain rules and standards for issuing tokens on Ethereum’s network.

In ‘ERC20’, ERC stands for Ethereum Request For Comments and 20 stands for a unique ID number to distinguish this standard from others.

Similar to the fact that we have an HTTP protocol for internet, we have a standard protocol for tokens to be issued on Ethereum i.e. ERC20.

To put it in layman terms, if you include certain functions in the token’s smart contract, you are ERC20 compliant. If you don’t include the mandatory functions, you are not ERC20.

You can see those functions here.

So, those tokens on Ethereum’s network checks all the necessary boxes i.e. includes the necessary functions in their token implementation which are deemed as ERC20 tokens.

These are crypto-assets or crypto-tokens which can be traded like Bitcoin or Ethereum or Litecoin but unlike these cryptocurrencies, they don’t have their dedicated blockchain. Instead, they thrive on Ethereum’s blockchain and bring several benefits for the users.

[bountyecrire]

Thanks for the information.
Most ICOs are done via Ethereum and their tokens are mostly ERC20.

So if someone wants to invest in ICOs, they just need to get an ethereum wallet and keep their tokens there. Myetherwallet, mycrypto or metamask can be a good option.

[wildanmr]

Thank you mate.
Your thread very usefull.
And bountyhunter/crypto investor I think know ERC20. And not all those people know what is erc20.

[altery0518]

Thank for giving shading lights to our mind because we encounter ERC20 tokens in many topics but we don't know what is all about.

[Dprincebh]

Thanks for the elaboration, I was kinda confused before

[Cakra bumi212]

ERC20 is a protocol standard that defines certain rules and standards for issuing tokens on Ethereum’s network.

In ‘ERC20’, ERC stands for Ethereum Request For Comments and 20 stands for a unique ID number to distinguish this standard from others.

Similar to the fact that we have an HTTP protocol for internet, we have a standard protocol for tokens to be issued on Ethereum i.e. ERC20.

To put it in layman terms, if you include certain functions in the token’s smart contract, you are ERC20 compliant. If you don’t include the mandatory functions, you are not ERC20.

You can see those functions here.

So, those tokens on Ethereum’s network checks all the necessary boxes i.e. includes the necessary functions in their token implementation which are deemed as ERC20 tokens.

These are crypto-assets or crypto-tokens which can be traded like Bitcoin or Ethereum or Litecoin but unlike these cryptocurrencies, they don’t have their dedicated blockchain. Instead, they thrive on Ethereum’s blockchain and bring several benefits for the users.

Sorry, I'm still confused between ERC-20 and ERC-371, in terms of what distinguishes between ERC-20 and ERC-371.
Please give an explanation

[tankist]

the ERC 20 token is a cryptocurrency created on the Ethereum platform.  One of the unique features that distinguishes it from bitcoin is that it involves the possibility of programming smart contracts. A smart contract is simply a marketing designation for computer code that can be used in a blockchain.  These applications, which are recorded in the Ethereum blockchain, are decentralized in nature because the Ethereum platform itself is decentralized. So we call them decentralized applications (or dapps for short). ERC 20 is a standard for creating tokens on the Ethereum blockchain. It includes a list of rules that tokens must comply with.

[adam27]

ERC-20 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. The clear majority of tokens issued on the Ethereum blockchain

[Cutter Cute]

Erc20 is good because developers can easily use this application by making tokens and they can manage the number of tokens they want.

[Ibraheem]

Erc20 is good because developers can easily use this application by making tokens and they can manage the number of tokens they want.

[Delgboke]

I have a question to ask please what is the difference between erc-20 and mew wallet in receiving your token

[Munareal]

ERC20 tokens are solely used on the Ethereum blockchain technology. The protocol allows the creation of new smart contracts that define a project. Smart contracts are used to create ERC-20 tokens. All ERC20 tokens follow a standard which allows them to be shared, exchanged for other tokens, or transferred to a crypto-wallet. ERC tokens have 3 optional and 6 mandatory rules created by the Ethereum community.

Optional

1.Token Name
2.Symbol
3.Decimal (up to 18)

Mandatory

1.Total supply
2.BalanceOf
3.Transfer
4.Transfer from
5.Approve
6.Allowance

[Beattysuhita]

given the fact that there are so many tokens under the eth platform and with the same features as yours, running on networks that are faster and safer and more decentralized, the challenge is the community that will patronize your services. without a solid foundation, this will go everywhere so I believe that is one thing you need to set a strategy for.

[Thegals]

ERC20 tokens are tokens that are designed to use the ethereum platform. Which has its own symbol and uses different smartcontracts in each of these tokens. This platform is now widely used by new ICO projects against tokens made. And thanks for your explanation about ERC20.

[Ozark]

ERC20 tokens are tokens that are designed to use the ethereum platform. Which has its own symbol and uses different smartcontracts in each of these tokens. This platform is now widely used by new ICO projects against tokens made. And thanks for your explanation about ERC20.

Correct me If I'm wrong but I think ICO projects as well as Smart Contracts, has something to do or maybe the reason why Ethereum price is falling... ICOs mass sell-off.