Beginner’s Guide to Ethereum ERC-20 Tokens
What is Ethereum, in the first place?
Where do smart contracts fit into all this?
After a token has been created, it can be traded, spent, or given to someone else. ERC-20 is the universal language that all tokens on the Ethereum network use. It allows one token to be traded with another.
Benefits of ERC20 Standard
- Uniformity of tech and protocol standard.
- Reduced complexity of understanding each type of token implementation.
- Enhanced liquidity of ERC20 tokens.
- Reduced risk of breaking contracts.
Whereas, if you have a standard and uniformity that ERC20 brings to the table, it becomes straightforward for users and exchanges to list such tokens quickly. The tokens follow a standard, i.e., ERC20.