![]() ![]() Whenever someone says “Ethereum Token” or “ERC-20 Token” or something else along those lines, I hope you’re now not immediately intimidated and spinning the loading screen in your brain trying to decipher what your just heard. But with thousands of Dapps built and tons more money already invested into Ethereum, it is still far ahead of competitors in terms of adoption. I certainly believe in and have investments in many of them, especially because Ethereum does come with its own set of drawbacks. ![]() Of course, this isn’t to say that the competitors won’t be around. If you’re trying to build a Dapp and company around it, you’d probably want to go for the safest option - the one that might still be around in a few years. Boil it down, and what that essentially means is that there’s more support in the industry for Ethereum than for other competitors. But if what I just said doesn’t make sense to you, don’t worry - just know that there are other blockchains that can host smart contracts other than Ethereum.Įthereum has first-mover advantage, though, and continues to have the largest market cap of any smart-contracts-enabled blockchain. ![]() For example, NEO is a blockchain that uses traditional programming languages like Java for scripting contracts, while Ethereum has its own language, Solidity. Since Ethereum launched with smart contracts in 2015, many other blockchains have emerged with their own take on smart-contract functionality. Learn more about them in my article Crypto Wallet Vs. If you think they’re the same, then you’re wrong. You might’ve noticed I used both the terms wallet and address. On your own wallet, though, you’re able to hold any Ethereum-based currencies that you want. If you try to send an ERC-20 token to your exchange’s Ethereum address, the exchange will not recognize it and you will not be credited the ERC-20 tokens. In other words, your Ethereum address and your ERC-20 token addresses will be different. Without getting into the intricate details of why not, just understand that exchanges generate unique addresses for each coin. One thing you should be cautious of, though, is to never use exchange addresses. You can use your Ethereum wallet to store them, and you can send to other Ethereum wallets. Storing and Trading ERC-20 Tokensīecause ERC-20 tokens are built on the Ethereum blockchain, they can be exchanged on it as well. If you’d like to explore more into the details of ERC-20 token standards, take a look at the Wikipedia article. There’s a list of rules that the tokens must conform to but I won’t get into the details in this explanation. Sure, it sounds sleek and minimalist, but no stores would accept it because it doesn’t conform to standard credit-card design rules and just looks plain shady.ĮRC-20 is just that standard applied to the creation of smart-contract tokens on the Ethereum blockchain. The expiration date, security code, and owner’s name are present on the card in positions that are so standard that smartphone cameras can quickly recognize them by scanning them.īut imagine if someone decided to create a credit card that had no information but a QR code. Each card has a black strip on the back to swipe, and most modern cards have a chip on the front. People quickly started realizing that creating your own coin required certain standards. ERC-20 Is a Standard Describing Ethereum Tokens ![]() With a majority of these Dapps, creators want to make their own coins (generically referred to as tokens), which means users must use their specific coin when interacting with Dapps - whether that’s a good thing or bad thing is up for debate, but I’m not here to answer it in this introductory article. So instead, we call them decentralized apps, or Dapps for short (some people say d-apps, others just pronounce it phonetically as dapps). After all, they’re not like normal apps - these apps that are written into the Ethereum blockchain are decentralized by nature because Ethereum itself is decentralized. You just breed and trade them.īut, staying true to lingo, we can’t just call them apps. Cryptokitties has arguably been the most popular Dapp on Ethereum. ![]()
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