What is ERC-20?
An ERC-20 token is nothing more than a smart contract that has a pre-established data structure.
How do ERC-20 tokens work?
ERC-20 tokens are, in principle, smart contracts that run on the Ethereum blockchain . They work within a programmatic framework established by the Ethereum team. This framework is broad enough to allow different uses without interrupting the operation of the Ethereum blockchain. For example, they are capable of keeping a sub-accounting parallel to the main Ethereum ledger, having their own unit of account. All this, without mixing the Ether balances of the addresses. But guaranteeing the transparency, traceability and security provided by the Ethereum network.
It is precisely this enormous flexibility that has led ERC-20 tokens to become a standard. The main utility of these tokens is to standardize the interface for creating and issuing new tokens on the network. It does this by enforcing certain rules and parameters for acceptance. This situation sustains both the economic and utilitarian part of the token.
The purpose and need for the ERC-20 tokens is to design a standard, to create interoperability and compatibility between tokens and foster improvements in the Ethereum ecosystem. This is because ERC-20 tokens greatly facilitate the work of creating new tokens. Since the infrastructure was designed for it. It was also accompanied by tools for that purpose such as the Solidity programming language, or the EVM virtual machine.
The best ERC-20 tokens
Many investors and users believe that this technology has very good projections, especially after the flaws have been improved. Therefore, the question of how to buy ERC-20 tokens is being asked much more frequently. In addition, there is now a list of ERC-20 tokens of popular cryptocurrencies at the moment.
EOS.
The capitalization of this cryptocurrency is approximately $6 billion. It also provides support for solutions that use open source for Dapps applications.
Tron.
This protocol was created for the entertainment industry. Tron has its own blockchain Development Service
. Standard publishing systems go through phases of censorship and rigorous scrutiny. The same applies to the promotion of multimedia content. Authors were often left without the opportunity to develop their full potential and could not receive remuneration. Tron allows them to have content published in a decentralized way. The cryptocurrency provides a direct relationship between the consumer and the content creator, excluding the intermediate stages of control. The first major user of this cryptocurrency was the Chinese app Peiwo.
OmiseGo.
The main goal of introducing a cryptocurrency based on ERC-20 technology is the gradual transition of almost all financial services to a decentralized basis.
Icon.
This cryptocurrency was designed by the Korean company Dayli. The main goal of creating a cryptocurrency was to increase the efficiency of the data exchange process between institutions that differ in their type of work, industry and other characteristics. This is a high performance chain. The connection of blockchain elements is present without the involvement of intermediaries. It does not require interaction with the information storage service, nor a centralized hosting.
BinanceCoin.
This Ethereum-based cryptocurrency was created to facilitate the implementation of electronic currency procedures on the Binance exchange. BNB has its own Blockchain. The main goal was to pass the exchange commission on to themselves. Plans included its development on a platform, which would allow further sharing of smart contracts.
